One of the hardest decisions a family or individual will ever have to make is whether to file for bankruptcy. Bankruptcy seems like the end of the road for some and makes them feel like a failure. But actually, bankruptcy may turn out to be the best option for some, depending on their situation. It could turn out to be an opportunity to start over fresh. If you are in a situation where you feel like bankruptcy is the only option in North Carolina, there is a bankruptcy lawyer in Cornelius, NC who can help you determine your options.
When put in the position of filing bankruptcy, there are usually two options available for individuals and families: chapter 7 and chapter 13. The first type is a complete dissolution of all qualified debts. The second type is a reorganization of all debts, giving you the opportunity to pay them off under a court-ordered plan. However, there are also exemptions under the bankruptcy law. You will be able to keep a certain property in a chapter 7 bankruptcy, and it will be determined what you will pay back to unsecured creditors in a chapter 13 bankruptcy.
If you are using bankruptcy exemptions in North Carolina, you must use the state exemptions as federal ones are prohibited for your state. Examples of exemptions that are commonly taken in the state are homestead exemptions, motor vehicle exemptions, wages, retirement, pensions, alimony, child support, separate maintenance, life insurance, and public benefits such as unemployment compensation, veterans’ benefits, and social security benefits coming in the future. Other exemptions include personal property like clothing, furniture, personal injury compensation and qualified college savings, among others.
Talking to a lawyer experienced in bankruptcy law will help the debtor understand how best to pursue his or her financial situation. The Lake Law Office, PLLC has been fighting for the legal rights of clients in bankruptcy cases for over 10 years. The attorneys at the firm also handle legal matters pertaining to real estate.
