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.
It is not uncommon for North Carolina residents to find themselves with financial troubles. Debt issues can impact anyone, and when those outstanding balances become too much to handle, people often find themselves looking for ways to get out from under their burdens. Though Chapter 7 bankruptcy is a viable option for many individuals, some parties may first consider other possible avenues, including taking money from retirement accounts.
When a debtor files for bankruptcy in North Carolina, he or she is required under the law to report all assets. In a Chapter 7 bankruptcy, assets are liquidated and used to pay off outstanding debts. However, despite its illegality, some people may try to conceal certain assets in an effort to keep them.
If you have decided to file for bankruptcy in North Carolina, chances are you did not arrive at that decision lightly. The process can be overwhelming and confusing for some people. Therefore, undergoing credit counseling is a mandatory part of the process so that you know exactly what you are in for and there are no surprises.
Agencies which are trying to collect outstanding debts are legally authorized to contact debtors in North Carolina. However, under the Fair Debt Collection Practices Act, there are certain rules that debt collectors must follow. When companies violate these regulations, consumers are often left at the receiving end of unwanted and unwarranted communications.
If you are unfamiliar with the process of going through a bankruptcy in Durham, it may seem confusing and intimidating. Therefore, understanding a little bit about what you will need to qualify for Chapter 7 bankruptcy can help you feel more comfortable. When deciding who is eligible, the bankruptcy court will turn to something known as a means test in order gain an in-depth understanding of your financial situation.
When you file for bankruptcy in North Carolina, you will be required to disclose all of your assets and all of your debts. While it is not easy to think about losing a home or a car or a bank account, failing to disclose an asset to the bankruptcy trustee is not a good idea. In fact, doing so is considered bankruptcy fraud and is a felony crime.
When money is tight in North Carolina, it can be difficult if you are forced to live paycheck to paycheck. If someone is garnishing your wages and deducting money from your hard-earned paycheck, it can be even harder. Dealing with a lot debt and financial stressors such as wage garnishments are what lead many people on the path to filing for bankruptcy. However, the purpose of bankruptcy is to provide you with some relief and that includes ceasing the garnishment of your wages.
If you have a North Carolina bankruptcy on your financial record, being employed is likely a very important issue to you. If you are searching for a new job, you may be concerned that you could be denied the position if the employer becomes aware of your bankruptcy. If you look to the courts for an answer on this important issue, you will likely find some conflicting information, according to The Huffington Post.
Many people who end up filing for bankruptcy in North Carolina may ask themselves how exactly they ended up in that position. It turns out that there are certain factors that increase a person’s chances of becoming insolvent. Knowing the warning signs may help some people prevent themselves from ending up in that situation.