Bankruptcy Law in Charlotte, NC

Financial difficulties can be experienced by anyone at any time and may be the result of exorbitant medical expenses, job loss, or divorce among other circumstances beyond our control.  If this is happening to you, it is important to understand that you are not alone and there is help.  Bankruptcy laws are designed to help alleviate the financial burden and stress caused by unwanted and unexpected life changes.


Bankruptcy Filing – Which is best for you?

There are two types of personal bankruptcies available to consider:  Chapter 7 and Chapter 13.  Until 2005, individuals had a choice of which was best suited for their situations.  However, new laws in 2005 now dictate which form of bankruptcy is available to you depending on circumstances.

Chapter 7

Chapter 7 bankruptcy essentially will provide relief by allowing you to be discharged from your debts.  Not everyone is eligible for this debt liquidation though and this is determined through meeting several criteria.  A bankruptcy means test must be administered, liquid assets considered, and credit counseling is required.  The means test will take into consideration the amount of yearly income versus the number of people in the household compared to median income allowances.  The result will determine eligibility for filing Chapter 7 bankruptcy.  Those who do not meet the criteria of being under the median household income outlined in the bankruptcy means test will have to file for Chapter 13 bankruptcy.

Chapter 13

Chapter 13 bankruptcy is a plan through which your debt is repaid in three to five years based on a calculated repayment schedule.  Like Chapter 7 bankruptcy a means test, liquid assets, and credit counseling will be involved.  However, secured and unsecured debt is handled differently.

How to File for Bankruptcy

The best way to consider your options to filing for bankruptcy is with the guidance of a trusted attorney.  The attorneys at Hands Law Firm understand your struggle and will provide you with the most sound, sincere advice and guidance for your personal needs during this difficult time.