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.
Typically, a vehicle, equity in a home and other personal items are exempt from being liquidated or otherwise seized by creditors. In most cases, filing for bankruptcy has no impact on an individual’s ability to find or retain a job. An employer will usually only take an employee’s bankruptcy into consideration if a position involves working with money. In some cases, an employer may appreciate the fact that a worker took steps to get his or her financial house in order.
Bankruptcy cases may cost a lot of money to complete, but it can be better than trying to pay down existing debt balances. Furthermore, individuals may receive an emotional boost knowing that their debts are either going to be discharged or easier to pay off in the coming years. It is important to point out that some debts such as child support payments cannot be discharged through bankruptcy.
Filing for bankruptcy may make it easier to eliminate or reorganize debt balances in a timely manner. In some cases, it may be possible to have a debt discharged without giving up property. Generally speaking, an individual who files for bankruptcy will be given an automatic stay of creditor contact. This means that there will be no phone calls or letters seeking payment of a debt balance until the proceeding comes to an end.