Types of Bankruptcy in NC
Charlotte Bankruptcy Lawyer
Schwilm Law Firm, PLLC is one of the leading consumer law and debt relief law firms in the Charlotte, North Carolina area. We have a reputation for diligence and integrity in helping individuals who are struggling financially. Our legal team is committed to protecting your personal financial matters. Because bankruptcy law is confusing, we provide you with detailed guidance each step of the way. When you are considering bankruptcy, get the advice and direction you want to determine which type of bankruptcy filing is most beneficial to you.
What is Chapter 7 bankruptcy?
A Chapter 7 bankruptcy is the most common type of case filed by individual consumers. If you are struggling to pay your bills, you should consider this type of filing. A Chapter 7 bankruptcy could greatly benefit you if you:
- Have significant unsecured debt such as credit cards and medical bills
- Do not own a lot of nonexempt property
- Are being harassed by creditors
- Already have a low credit score
While no two filings are exactly the same, most Chapter 7 cases take three to six months to resolve and are one of the fastest means for obtaining comprehensive debt relief. In addition, most debtors are able to keep the majority (if not all) of their assets in a Chapter 7 filing. You should discuss this matter with our debt relief attorney at Schwilm Law Firm, PLLC before you file your case.
What is Chapter 11 bankruptcy?
If you own a small business that is struggling financially, a Chapter 11 bankruptcy may provide a solution to your troubles. The amount of debt that can be discharged (eliminated) in a Chapter 11 case does not have a limit, which makes it ideal for companies. This type of case revolves around reorganizing the business. In other words, rather than selling the assets of the debtor, the debts are restructured or renegotiated under a repayment plan that must be approved by the creditors. A Chapter 11 bankruptcy is ideal for businesses that want to continue their operations and at the same time go through reorganization to be able to pay creditors and also generate income. Bankruptcy law governing Chapter 11 cases is considered to be the most complicated type of bankruptcy, so retaining an experienced and skilled bankruptcy attorney to represent you is necessary.
What is Chapter 13 bankruptcy?
A Chapter 13 filing may be right for you if you are struggling to pay your bills, but you do not qualify for a Chapter 7, or if you want to pay certain creditors. If you are past due on your mortgage loan payment and you want to keep your home, a Chapter 13 bankruptcy can halt foreclosure proceedings and allow you to keep your home and catch up on your payments. Under a Chapter 13 plan of reorganization, a debtor can consolidate their bills into one monthly payment that is managed by the court. A Chapter 13 case lasts three to five years, depending on your plan of repayment.
Which type of filing is right for you?
Deciding which type of bankruptcy is right for you can be a confusing task. Our experienced bankruptcy attorney can look at the amount of your debt, the types of assets you own, your income and other financial factors to help you make the right decision. We walk you through how each bankruptcy filing works and help you decide how a filing would benefit you and your family.
Schedule Your Free Initial Consultation
Contact our Charlotte bankruptcy attorney at Schwilm Law Firm, PLLC online or
call 704.567.5252 to schedule a free initial consultation and discuss your bankruptcy filing. We provide convenient parking at our Charlotte office. Let us help you get the financial freedom you need today.