Don’t be afraid of bankruptcy! If you find yourself owing debtors more than you can afford and you want to learn more about bankruptcy, contact the bankruptcy lawyers at Craft Law Offices in Greenville, Morehead City, or Rocky Mount, North Carolina. We can sit down with you and discuss your best options for moving forward.
Many people think bankruptcy is a bad thing and will not even consider filing for bankruptcy when they’re in financial trouble. We’re here to help you understand exactly what bankruptcy is and how you may benefit from filing bankruptcy. Bankruptcy is a court proceeding during which a judge and a court trustee examine assets and liabilities of individuals and businesses who are unable to pay their bills. The judge and the court trustee will eventually decide whether to discharge those debts so that the debtor is no longer legally required to pay their debts.
Bankruptcy laws were written so that people whose finances collapse have a chance to start over. Some lawmakers believe that in a capitalist economy, some consumers and businesses need a second chance. Many people successfully file for bankruptcy. One study through the American Bankruptcy Institute found that there were 488,506 Chapter 7 bankruptcy cases completed in fiscal year 2019, and 94.3% of them were discharged (meaning that 94.3% of individuals who filed were no longer legally required to pay their debt).
Individuals who filed for Chapter 13 bankruptcy (known as the “wage earner’s bankruptcy”) that same year were split on their success. Slightly less than half of the 283,412 Chapter 13 cases were discharged, while a little more than half were dismissed (which means that the judge felt the individual filing had enough assets to handle their debt).
So why would someone declare bankruptcy in the first place? It’s a way to start over again financially. But also, filing for bankruptcy might ease some of the tension related to your financial problems. If you declare bankruptcy, you will stop receiving the badgering phone calls, letters, or other attempts that creditors may attempt to collect what you owe them.
Legally, this is referred to as “the automatic stay.” This means that creditors are not allowed to file a lawsuit against you. This also stops eviction, utility disconnection, and wage garnishments. Bankruptcy can be a long-lasting and frustrating situation; usually the whole process takes around six months to complete.
But filing for bankruptcy is worth it for many people, and we are here to help. At Craft Law Offices, we believe that filing for bankruptcy should make you feel better about your financial situation and not worse. Give us a call today to talk through your options!