Under the current Ch 13 laws it is possible for some clients to file a Ch 13 bankruptcy without paying any upfront fees or costs. A Ch 13 bankruptcy is a type of plan that can set up reasonable payments for a 3-5 year period to help individuals and couples catch up on car loans, back house payments and help with unsecured credit card debt. In a typical Ch 13 case a client may be behind in car payments and have unsecured loans and credit cards as well. In this situation we can set up a payment plan to pay for the car loan over a five-year period and in most cases alleviate the unsecured debt without having to pay any money to those unsecured creditors. In some cases, you may be able to even greatly reduce the amount you pay back on your car loan. If you do not have the up-front filing fees of $310.00 to start the Ch 13 bankruptcy it is possible in certain situations to file a Ch 13 case for no money down. This allows you to set up a payment plan to pay the filing fee in three installments while at the same time obtaining the protection you need from the bankruptcy laws. In order to qualify for the no money down filing you have to meet certain criteria in our office.
North Carolina residents who watched the Jan. 14 Democratic presidential debate may have heard Senator Bernie Sanders say that about 500,000 Americans file for bankruptcy each year because of medical debt. Sanders based his claim on the results of a recent survey of 910 personal bankruptcy cases conducted by the Consumer Bankruptcy Project. The advocacy group concluded that more than 65% of the people who file a Chapter 7 or Chapter 13 bankruptcy each year do so because they have medical bills they cannot pay or found themselves in an unmanageable financial situation after an illness or injury.
When most people think of bankruptcy, they often think of someone having all of their assets repossessed, including their home. While that is what happens with chapter 7 bankruptcy, there are other forms of bankruptcy. North Carolina residents may be interested in learning about chapter 13 bankruptcy, which basically allows a person to pay back their debt while holding onto their assets.
Senior citizens in North Carolina and around the country are filing for bankruptcy in unprecedented numbers according to a recent study. Chapter 7 and Chapter 13 bankruptcies filed by Americans between 55 and 64 years of age have risen by 66% since 2016, and the number of retirees in the United States seeking debt relief has more than tripled. These were just two of the sobering statistics a University of Illinois professor discovered when he looked into the financial challenges faced by older Americans.
The statute of limitations is the amount of time that creditors have to take legal action to recover an unpaid debt. Once the time period allowed by the statute of limitations has passed, debt collectors can still try to collect monies owed, but they cannot file lawsuits against delinquent borrowers or garnish their paychecks. In North Carolina, the statute of limitations for automobile loans, installment loans, credit cards and promissory notes is three years from the date of the last payment or charge.
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.
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.
The credit scores that can affect many aspects of life for North Carolina residents are based on several factors, including whether an individual has filed for bankruptcy. Some filers may wonder if there's a difference between old and new bankruptcies when it comes to credit scores. The answer is largely dependent on what a debtor does after bankruptcy has been approved.
For many North Carolina residents, their car is a necessary item that allows them to go to work or attend school. However, some people may face serious financial difficulties that prevent them from paying off their car loans. As a result, they may face the threat of repossession. People can contact their lenders and attempt to negotiate a solution, including changing the payment date, deferring the loan, or modifying the terms.
Student debt has become a bigger and bigger presence in the finances of Americans. A recent analysis by Experian points to such debt having increased considerably here in the U.S. over the past decade.