Student loans are rarely ever discharged in bankruptcy proceedings. Yet, they can still make up a significant portion of the average debtor's mountain of unpaid bills.
In North Carolina and across the United States, people experiencing heavy debt may file for bankruptcy as a way to cope with their financial problems. However, bankruptcy is not the ideal solution for every person. Whether a person files Chapter 7 or Chapter 13 bankruptcy, he or she may need to relinquish his or her vehicles or expensive jewelry. Nevertheless, one important thing to remember is that bankruptcy offers people with high credit card debt a legal path to a fresh financial start.
For many people living in North Carolina, their homes may be the biggest asset that they own. As much as a third of their monthly income will go toward paying their mortgage each month. However, people take great pride in their homeownership status, as it is symbolic of the American dream for quite a few people.
While filing for bankruptcy is not something that should be taken lightly, it can be an effective way for North Carolina consumers to obtain debt relief. In many cases, bankruptcies are the result of a person losing a job or experiencing an unexpected medical debt as opposed to spending too much money. Those who file for bankruptcy may be able to keep some or all of their property.