Individuals who file for bankruptcy are likely to have a difficult time getting unsecured credit cards or loans. However, one study found that filing for bankruptcy is unlikely to have an impact on whether a person is able to find a job. Furthermore, filing for bankruptcy is unlikely to have an impact on how long a person stays in a particular position.
One reason why people in North Carolina may file for personal bankruptcy is to put an end to creditor calls and collection attempts, including lawsuits and repossessions. People struggling with insurmountable debt may face intensive attempts to collect, and filing for bankruptcy may provide them with options to find relief. When people file a bankruptcy petition, an automatic stay goes into effect. Creditors that want to move forward with ending a lease or other actions need to approach the bankruptcy court first, and they can be penalized for failing to comply with the automatic stay.
Many North Carolina consumers are struggling with their financial obligations, and there are several reasons why this might be so. People can be burdened with extensive credit card debt or medical bills, and the situation can be exacerbated by an unexpected job loss. When other methods of debt relief have failed or are unavailable, some people might consider filing for bankruptcy under Chapter 7. However, not everyone is eligible to do so.
The decision of whether to file for bankruptcy in North Carolina can be a difficult one, and it turns on the facts of the case. Every debtor's situation is different; a certain amount of debt in one case might call for bankruptcy while debt restructuring might be a better option in another case. Among the first things to consider are the broad financials, income, expenses, assets and liabilities. It's also important to be aware that many creditors have little incentive to settle debts.
Most college students in North Carolina and around the country will be in debt to the tune of thousands of dollars when they enter the workplace, and many of them will find it extremely difficult to make their required monthly payments. The nation's bankruptcy code was revised in 2005 to make student loan debt nondischargeable in most bankruptcy cases, but there is an exception to this general rule when continuing to make payments would impose an undue hardship on the petitioner.
North Carolina military veterans may find it difficult to make ends meet, especially if they are disabled and relying on military benefits to support themselves. Medical bills and personal bills can stack up, leading to creditor calls and demands for payment. As a result, veterans may find themselves facing low credit scores, difficulty renting or buying a home and even threats of lawsuits. Personal bankruptcy can be an important safeguard as a mechanism that helps people escape the crushing burden of excessive debt. Veterans are particularly affected by bankruptcy. While they make up only 10% of the population overall, they comprise 15% of those filing for both Chapter 7 and Chapter 13 personal bankruptcy.