Recent FAQs

What is a Motion to Dismiss in Chapter 13?

A motion to dismiss is a common motion in a chapter 13 bankruptcy. Such a motion asks the judge to close the bankruptcy, and the result is no discharge of debts and the debtor is left to resolve debt matters without the assistance of the bankruptcy process. Most motions to dismiss are filed by the Chapter 13 Standing Trustee.

Can someone else pay for my bankruptcy?

Generally yes. We routinely accept fees prior to filing a bankruptcy case that has been paid by a family member or other acquaintance. Payments can be made by mail or online.

I would note two limitation of importance:

Secured? Priority? Unsecured? What are these types of debts?

Bankruptcy is designed to provide relief from debts. However, all debts are treated the same. While what might happen to any given debt can become a very fact-particular inquiry, there's a few categorizations that are very basic to understanding the bankruptcy process.

What is an Adequate Protection Payment?

Basically, adequate protection payments are early-case disbursements made by the chapter 13 trustee from funds the debtor as paid to the trustee, which are directed towards holders of car loans and other certain secured claims on personal property. The theory behind these small payments is to protect the lender from depreciation while the case is pending.

How long will I be in Chapter 13 Bankruptcy?

The function of chapter 13 bankruptcy is paying certain debts over time. Examples include catching up a mortgage, paying off a car loan, and taking care of back taxes. But over how much time exactly?

The short answer for most cases is between 3 years and 5 years.

How are chapter 13 attorney fees paid?

Chapter 13 bankruptcy provides debt relief that in many ways is more flexible and powerful than chapter 7. In addition to the elimination of old unsecured debts such as charge cards and medical bills, chapter 13 provides for ways to prevent foreclosure and repossession, as well as to pay certain debts like taxes over time. Despite the potential complexity, chapter 13 bankruptcy remains accessible as the chapter 13 plan can provide for the payment of attorneys fees over time.

Can I get credit after bankruptcy?

Generally, Yes. Bankruptcy does not end one's ability to borrow money, although it impacts exactly what credit is available.

Can my wages be garnished by a creditor in another state?

North Carolina residents are fortunate to not have to routinely deal with wage garnishment. For most ordinary debts, such as credit cards, vehicle repossession deficiency balances, and private medical bills, North Carolina law does not permit wage garnishment as a means to collect the debt. However, North Carolinians sometimes find themselves having their wages garnished on order of another state's courts.

How does bankruptcy save a house from foreclosure?

Bankruptcy, Chapter 13 Bankruptcy especially, is routinely used to save a house from foreclosure. It boils down to a two step process: (1) stay the foreclosure with the filing of the bankruptcy case and (2) catch up the past-due amount over 3 to 5 years.

When are claims filed in my Chapter 7 Bankruptcy?

For proof of claim filing requirements, chapter 7 cases have to be considered in two groups: (1) Asset Cases, where the trustee is selling property and paying creditors, and (2) No-asset Chapter 7 Cases, where all property is covered by one or more property exemptions.

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