Bankruptcy FAQs

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Frequently Asked Bankruptcy Questions

Charlotte Bankruptcy Attorney

Our legal team at Schwilm Law Firm, PLLC understands that bankruptcy law is confusing. Every individual’s financial situation is unique, so you should seek legal counsel regarding your circumstances. We are available to answer your questions at a free initial consultation. However, for your convenience, we have assembled a list of frequently asked bankruptcy questions and answers:

Contact Our Bankruptcy Law Firm for a Free Initial Consultation

If you are facing financial struggles, our attorney at Schwilm Law Firm, PLLC can help you determine your options and an effective plan for dealing with your debt. Contact us on our website or by calling 704.567.5252 to schedule your free initial consultation. Serving the Charlotte metropolitan area, our convenient Charlotte office offers ample parking.


How do I begin the bankruptcy process?

Your first step is to inventory your past and present debts. You need a list of your assets to include in your petition in the bankruptcy filing. Schedules of assets and liabilities, along with a statement of your financial affairs, comprise the petition you file with the North Carolina bankruptcy court, accompanied by your filing fee. Our Charlotte bankruptcy attorney can assist you with all of these matters to ensure that your filing is successful.

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How do I know if declaring bankruptcy is right for me?

Our experienced bankruptcy law attorney can help you determine the options that best suit your particular situation. For consumers, filing for Chapter 7 relieves most of your debt, but not all. Filing Chapter 13 pays off your debts with a structured repayment plan. Businesses, corporations and partnerships can file for Chapter 7. Sole proprietorships can file Chapter 13. Other commercial enterprises can file Chapter 11 to repay creditors through a court-approved plan of reorganization.

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What debts does bankruptcy not cover?

The following are likely to still be your responsibility even after you receive your discharge order:

  • Child or Spousal Support Payments
  • DUI Judgments
  • Fines for Criminal Conviction
  • Restitution in Criminal Cases
  • Debt From Fraudulent or Intentionally Wrong Actions
  • Any Back Taxes That are Less Than 3 Years Old
  • Student Loans
  • Any Luxury Purchases over $550 Within 3 months of filing

Our Charlotte lawyer who is familiar with North Carolina’s bankruptcy law can provide you with further information on the specifics.

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When does filing a Chapter 7 bankruptcy make sense?

When the following conditions exist, filing a Chapter 7 bankruptcy may be your best option:

  • You cannot pay your debts.
  • Your creditors are pestering you or threatening to sue you.
  • You have a wage garnishment pending against you.
  • You do not have any debts with cosigners.
  • You are facing foreclosure or repossession.

Our Charlotte debt relief lawyer can review your individual finances and explain how filing a Chapter 7 case can benefit you.

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When does filing a Chapter 13 bankruptcy make sense?

If you need some breathing room to pay your debts, Chapter 13 could be your best bankruptcy option, especially if you:

  • Are behind on your mortgage payments
  • Owe the IRS
  • Do not qualify for Chapter 7
  • Need relief from collection proceedings
  • Have debts with cosigners
  • Can pay your debts within three to five years

Let our experienced bankruptcy attorney at Schwilm Law Firm, PLLC guide you through the requirements of a Chapter 13 filing and explain how it resolves your debt issues.

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What happens to my home mortgage during bankruptcy proceedings? I do not want to lose my home.

Your state dictates the threshold amount of equity that you can have in your home when you file for personal bankruptcy and the exemptions. Trustees may not elect to sell your house if the equity surpasses the exemption. If the North Carolina homestead exemption is applicable, you can protect up to $35,000 of value in your share of the residence. A bankruptcy attorney can review your bankruptcy options with you to meet your personal and financial recovery goals.

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Does a bankruptcy stay on your record? If so, for how long?

Bankruptcies are present on credit reports for seven to ten years. It is a good idea to consult with our qualified bankruptcy lawyer before you make any immediate decisions. In many cases it can be beneficial to file bankruptcy, but we recommend you talk with our firm first.

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