There are many different purchases that people in North Carolina make using credit cards or by taking loans out for the purchase. People also may incur unexpected bills such as medical bills from an unexpected illness or injury. It is not uncommon for people to have debt and having debt by itself is not a bad thing as long as people can make their monthly payments. However, it only takes an unexpected medical expense or a lost job to make it difficult to keep up with the payments.
When this occurs, it can become overwhelming. People who find themselves in this position may be able to eventually rid themselves from this debt through Chapter 13 bankruptcy. This is a good option if people are still able to make payments, even though it may be difficult, as it allows people to keep more of their possessions. However, one big difference between Chapter 7 and Chapter 13 bankruptcy is that most Chapter 7 bankruptcies result in discharge of all debt whereas Chapter 13 may not.
While it is not as automatic as with Chapter 7, people who go through Chapter 13 bankruptcy could still have allowable debt discharged. People who made all of their payments under the plan can discharge the remaining debt if they have paid all child support and alimony payments; have not received a discharge of debt in the two previous years; and complete a financial management course. There also cannot be any proceeding affecting the person’s homestead exemption.
There are many different reasons that people may become overwhelmed by their debt. When this occurs, it may seem like there are no options and they will be dealing with it forever. However, people could file for Chapter 13 bankruptcy even if they do not qualify for Chapter 7 bankruptcy. Through a Chapter 13 bankruptcy people can achieve a fresh start and it can be beneficial. The process can be complicated though and consulting with an experienced attorney could be helpful.