Finding the best way to move on from considerable consumer debt can be challenging. For North Carolina residents struggling with this type of situation, they may fear taking the route of Chapter 7 bankruptcy because of negative misconceptions. However, this option could prove beneficial for many people trying to deal with substantial consumer debt.
Though Chapter 7 bankruptcy involves liquidation, this does not mean that a person who follows this route will lose all of his or her possessions. In fact, 95 percent of Chapter 7 cases leave individuals with all of their assets because the petitioners do not go over the legal threshold. As a result, parties often have the ability to move forward with discharging debt and keeping their property.
This bankruptcy process can often be completed in a relatively timely manner as well. On average, the entire process takes from three to five months to complete. Additionally, the majority of the individuals who follow this route see a successful discharge of their applicable debts. Though some debts may not be entirely forgiven through the process, there are ways in which those liabilities can be effectively addressed.
Though it is understandable that many North Carolina residents may have concerns when it comes to bankruptcy, having the right information may help put many of those concerns to rest. Chapter 7 bankruptcy often assists numerous parties in getting their finances back on track after struggling for some time. If individuals are interested in taking the first steps toward getting out from under their crushing debt, they may wish to speak with experienced attorneys about the qualifications for bankruptcy.
Source: motherjones.com, "Too Much Debt? How to Make a Smart Decision About Filing for Bankruptcy", Paul Kiel, Sept. 28, 2017