Durham Bankruptcy And Debt Relief Attorneys

Being in serious debt can feel like an overwhelming burden. It can also bring a great amount of pressure. Some people, blinded by the stress, resort to using their credit cards or other means to pay off their monthly financial obligations. This can lead to a cycle of debt that can last for years. If you are facing this kind of problem, know that you are not alone. Help is closer than you think.

Bankruptcy is a time-honored, constitutionally authorized tool to allow honest, everyday people to regain control of their financial stability. Working with a strong, compassionate and confidential Durham bankruptcy attorney may help you to overcome your unmanageable debt.

Do not keep fighting the losing battle against debt on your own. If your debt is larger than your income every month, you need help. Our North Carolina bankruptcy attorneys are here to help you.

Call 919-794-8660, text our office at 919-382-3065 or email us to get the help you need! Consultations are available in person, over the phone or through video conferencing.

North Carolina Bankruptcy Options

Bankruptcy is one of the best tools to help people who are struggling with insurmountable debt. At Wootton & Wootton, our lawyers have a wealth of experience helping North Carolina clients file for:

• Chapter 7 bankruptcy: Chapter 7 is essentially known as a straight bankruptcy. This bankruptcy process will help you get out of unsecured debts as well as secured debts that you wish to surrender. Chapter 7 is a quick way to get a fresh start. It usually takes most people about three to four months to get a fresh start after filing for Chapter 7 bankruptcy. Though it is known as liquidation bankruptcy, most of our clients retain the majority of their assets. It also offers a quick and simple process to get a start on rebuilding your credit. Small business owners, especially those who are closing their businesses, often choose to file for this type of bankruptcy.
• Chapter 13 bankruptcy: Chapter 13 bankruptcy is a tool that allows you to set up a monthly budget while removing debt over the course of the payment plan. Chapter 13 is not a “consolidation” of debt, per se. Instead, debts are given different priorities, and one single monthly payment is part of the plan. Often, the person or married couple will not have to pay off all of the debt, depending upon the affordable budget in the plan. Most of our Chapter 13 clients do not have to pay money back on their unsecured debts, which helps make the monthly payments affordable. Some can also structure payments as low as $100 per month for three years. Chapter 13 bankruptcy can last anywhere between three and five years, depending on the type of debts you wish to consolidate.

Why File For Bankruptcy?

Are you wondering why you should file bankruptcy? Bankruptcy is an opportunity for a fresh financial start, which can:

• Put a halt on foreclosure
• Stop car repossession
• End creditor harassment

Are You Eligible To File Bankruptcy?

If you are wondering whether you are eligible to file for bankruptcy, contact our attorneys. We will help you understand:

• The difference between unsecured and secured debts
• How to file bankruptcy
• How to get credit after bankruptcy
• The 10 facts you need to know about bankruptcy
• What you need to know if you are going through or considering a divorce

Can Your Bankruptcy Discharge Be Denied?

Yes, it is possible for a bankruptcy court to deny a discharge. However, it is not common, especially if you meet all the filing requirements. The court may only deny a bankruptcy discharge if you:

• Provided inaccurate information: It’s crucial to ensure that all the information in your bankruptcy petition is accurate. Creditors may challenge any missing details or inaccurate data, even if it’s an honest mistake. This could result in a denial of your discharge.
• Attempted to defraud: Full disclosure of your finances and debts is essential. Trying to hide or destroy any assets, with the intention of misleading the court, can be grounds for denial.
• Hid or destroyed information: Do not conceal or falsify any financial records. This can make it difficult for the court to verify your financial condition, which can then lead to a denial.
• Failed to complete your counseling program: Attending and finishing a credit counseling and financial management course is mandatory when filing for bankruptcy. Not doing so could mean you have to refile your case.
• Non-compliance with court orders: Always follow orders issued by the court. Failing to do so can lead to serious consequences, including a denial of your bankruptcy discharge.

Complete and total honesty about your finances is key to having your bankruptcy discharge approved with no issues. Our bankruptcy attorneys at Wootton & Wootton can help ensure that your petition is accurate and has all the information necessary.

What Are The Debts That Bankruptcy Cannot Address?

Bankruptcy may not fully eliminate child support, alimony, tax debt or personal injury settlements. Here’s why:

• Child support and alimony: No matter what type of bankruptcy you file, it will not exempt you from paying child support and alimony in full. There are essential financial responsibilities to support dependents, so bankruptcy cannot eliminate them.
• Federal tax liens: Taxes are crucial in maintaining public revenue. Since the government prioritizes these payments, a bankruptcy filing cannot clear most tax debts. However, it may cover some older unpaid tax debts, depending on specific circumstances.
• Personal injury settlements: If you are responsible for paying any personal injury or wrongful death settlements due to a car accident involving alcohol, you must pay them in full. A bankruptcy cannot discharge them as a matter of public policy since it is meant to hold people accountable for their actions.

The type of bankruptcy you choose can also affect which debts you can clear. In Chapter 7 bankruptcy, you can eliminate some debts, but you may need to sell your nonexempt assets to pay creditors. In Chapter 13 bankruptcy, you can reorganize your debts to repay them over time, reducing financial strain. Our attorneys can help you explore your options and choose the bankruptcy type that best fits your financial situation and ability to pay.

How Can Chapter 13 Bankruptcy Help With Tax Issues?

A successful Chapter 13 bankruptcy can offer meaningful relief for North Carolina residents struggling with tax debt.

Unlike Chapter 7, which may not address recent or high-priority tax obligations, Chapter 13 allows individuals to repay qualifying tax debts over time while protecting assets and halting collection efforts.

Here are some of the most invaluable advantages of pursuing Chapter 13 bankruptcy when facing tax issues:

• Stops IRS collection actions: Filing initiates an automatic stay that prevents wage garnishments, bank levies and other enforcement measures.
• Allows repayment over time: Qualifying tax debts can be included in a structured plan – three to five years – making them more manageable.
• Prevents additional costs: Once the plan is confirmed, interest and penalties on priority tax debts typically stop accruing.
• May reduce nonpriority tax obligations: Older income tax debts that meet specific criteria may be treated as unsecured and discharged at the end of the plan.
• Protects property from tax liens: Chapter 13 bankruptcy can help address secured tax debts and may limit the impact of existing liens on assets.
• Consolidates debts into one payment: In Chapter 13, tax debts will be combined with other obligations, helping simplify monthly budgeting while meeting tax responsibilities.
• Preserves eligibility for tax refunds: Individuals may still receive tax refunds during Chapter 13, although they may be delayed or applied toward outstanding tax debts.

These benefits are especially valuable for those who owe federal or state income taxes but want to avoid aggressive IRS actions or asset loss. However, eligibility for discharge or repayment terms depends on factors such as the age of the tax debt, filing history and whether a lien has been recorded.

Navigating tax obligations during bankruptcy benefits from careful planning and legal insight. Our knowledgeable bankruptcy attorneys can evaluate your tax situation and determine which debts qualify for relief. From there, we will develop a Chapter 13 plan that aligns with IRS requirements while supporting your financial goals.

When Should You Consider Filing For Bankruptcy?

There are many reasons why a person may need to file for bankruptcy. If you are facing serious financial difficulties, consider filing for bankruptcy if:

• You rely on credit cards for regular expenses: Credit cards are convenient, and they can be a temporary solution. However, they also have high interest rates. Relying on them to cover recurring bills or bridge the gap until payday is not advisable. If adjusting your budget or spending doesn’t provide relief, bankruptcy could be a practical way to reset your finances.
• You’re delaying payments due to lack of funds: Struggling to pay crucial expenses such as a mortgage, medical prescriptions or car repairs indicates financial stress. While revising your budget may help, if you’re still unable to make these payments, bankruptcy might be worth considering.
• Creditors are pursuing you: If overwhelming debt leads to creditors threatening asset seizure, negotiating a payment plan is a recommended first step. However, if negotiation fails and the debts are eligible for discharge through bankruptcy, this option could offer relief and protection.

Not all situations involving debt require one to file for bankruptcy. However, if any of these apply to you, it is highly advisable that you consider it as an option. Our bankruptcy attorneys can help assess your situation and provide guidance on the next steps you can take.

Contact A Durham Chapter 7 And 13 Bankruptcy Attorney

Stop Repossession ∙ Stop Creditor Harassment ∙ Get A Fresh Financial Start

Do not delay. Even if you are not sure about bankruptcy, you know you need to do something about your debt problems; you can discuss your bankruptcy options with an attorney from our firm without charge. Call 919-794-8660, text our office at 919-382-3065 or email us to learn more. Consultations are available in person, over the phone or through video conferencing.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.