Recent FAQs

How can I keep my stuff in bankruptcy?

At our firm, we understand that two top concerns for many people considering bankruptcy are (1) keeping their possessions and (2) obtaining peace from worry over debt collection. For most individuals, there are bankruptcy options to keep most types of property.

Can I file Chapter 13 Bankruptcy after a recent Chapter 7?

Occasionally, chapter 13 bankruptcy cases are filed by individuals who recently filed chapter 7 and obtained a chapter 7 discharge. As I noted in a post on filing second bankruptcy cases, a discharge in the chapter 13 case is unavailable unless 4 years have passed since the chapter 7 case was filed. However, chapter 13 can still be used adjust payment schedules, even without a discharge.

What is a violation of the automatic stay?

One powerful benefit of the bankruptcy process is the automatic stay, which prevents a wide range of collection activity. The automatic stay allows the bankruptcy case to run its course without creditors and other parties unravelling its effectiveness with out-of-bankruptcy collection activities. Willful violations of the stay can result in actual damages, attorneys' fees, and occasionally punitive damages.

How is the chapter 7 trustee paid?

There are basically three sources of compensation for a chapter 7 trustee: (1) $61 out of the $306 filing fee the debtor paid to file the case with the bankruptcy court; (2) compensation for making distributions to creditors; and (3) attorney's fees charged against the bankruptcy estate. In a no-asset chapter 7, where the debtor has claimed all of his or her property as exempt and there are no other recoveries to be had for benefit of creditors, only the first source of compensation is available.

Can a debtor object to a proof of claim?

When a creditor wants to assert a right to be paid in a bankruptcy proceeding, it files a proof of claim with the bankruptcy court. In general, these claims are treated as valid unless objected to. Whether the debtor may (or even should) object to a claim depends on the type of bankruptcy case.

What is Chapter 13 Payroll Deduction?

Almost every chapter 13 plan involves a monthly payment to the standing trustee, which is in turn distributed to creditors. The two primary ways the monthly payment can be made is either by directly paying the trustee (e.g. mailing a check) or by having an employer withhold the payment from each paycheck.

What is a Chapter 13 Hardship Discharge?

In the ordinary case, a chapter 13 discharge (which eliminates personal liability on debts) is granted shortly after the completion of plan payments. A

How does Chapter 7 help when I am giving up a house to foreclosure?

Sometimes, a house becomes too expensive for its owners to continuing living in and paying the mortgage. Changes in income can make what was once affordable now unmanageable. Problems with a house or mortgage terms can push the cost of ownership beyond one's means. Sometimes, there are opportunities to work things out the mortgage. Other times, the smart decision is to walk away from the house and allow the bank to foreclose.

What are the exemptions available in North Carolina?

North Carolina opted out the federal bankruptcy exemptions for its residents, so the state law exemptions are the exemptions applicable for North Carolina residents in bankruptcy.

What are PACER and CM/ECF?

The federal courts provide electronic case management, case filing, and case access for federal cases, including bankruptcy cases. Using CM/ECF, bankruptcy attorneys file petitions and other papers for near-immediate access by the court and other parties. The software also allows the court's staff to manage the docket and distribute orders of the court. PACER provides nationwide access to public federal court dockets and papers. Access charges and limited search abilities mean that most PACER users are interested parties and not casual browsers.

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