Can Your Law Firm Help Me With A Second Bankruptcy
Our team is familiar with federal and North Carolina bankruptcy laws and regulations. We help you complete all required paperwork and ensure it is submitted within the allotted time. We will also represent you at all court hearings and attend any required meetings. Our team also helps you meet any other requirements the court makes regarding credit counseling and debtor education.
What Do Previous Clients Say About Their Experience With Your Firm
Our team is committed to providing an outstanding client service experience for every client we represent. When they talk about working with our team, previous clients say:
- Recommended by a friend, Ms. Valentine listened to my issue, provided a straightforward analysis of the possible outcomes, and delivered the best result possible. Lemuel Robinson
- I was very satisfied with how quick my case was resolved without any hassle or confusion. My attorney, Gabrielle Valentine, was very straight forwardI am very thankful for this law firms services. Thank you. Clint T. Robertson
- I have had a positive experience with Farmer and Morris. The entire process was smooth, and Mrs. Farmer made it easy for me. She kept up with me throughout my court case afterwards. She sent caring/concerning emails and that meant the world to meThank you, Farmer and Morris! Jessica New
Our team works hard to create satisfied clients and help you get the fresh financial start you need. Learn more by reading additional client testimonials on our reviews page.
How Soon Can You File For Chapter 13 After Chapter 7 Bankruptcy
In order to get debts discharged through Chapter 13, you must wait four years after filing a Chapter 7 bankruptcy.
You can file for Chapter 13 before four years if no debts were discharged in the Chapter 7 filing, but if you had debts discharged in Chapter 7 and want to have debts discharged in Chapter 13, you must wait four years.
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File Bankruptcy Petition And Other Forms
- List of all the creditors and the amounts of those claims
- Your source of income including frequency and amount
- All of the property you own
- A comprehensive list of your living expenses
There are also local rules and forms that may be specific to North Carolina. If you are filing bankruptcy with an attorney, they should help guide you through the local requirements. For example, see the local rules in North Carolina based on the district:
What Are The Time Limits
The type of bankruptcy filed in the previous case determines the time limit between cases. The time starts to run on the date the prior case is filed with the bankruptcy court. The date the discharge was entered doesnât matter.
Chapter 7 bankruptcy â¡ï¸ Chapter 7 bankruptcy: 8 years
This is the longest amount of time between cases required by the Bankruptcy Code. Chapter 7 provides the quickest form of debt relief through a bankruptcy filing and doesnât require the filer to complete a repayment plan before getting their bankruptcy discharge.
Chapter 7 bankruptcy â¡ï¸ Chapter 13 bankruptcy: 4 years
It is possible to file Chapter 13 bankruptcy soon after receiving a Chapter 7 discharge, the filer just wonât be eligible to receive a Chapter 13 discharge in the second case. So, someone who successfully discharges their unsecured debts through Chapter 7 can file a Chapter 13 bankruptcy to pay off tax debts or other types of debt that survived the prior case.
Chapter 13 bankruptcy â¡ï¸ Chapter 7 bankruptcy: 6 years
This waiting period can be waived if you paid back 100% to your unsecured creditors in your Chapter 13 plan and the original case was found to be in good faith. Plus, since a Chapter 13 repayment plan can take up to 5 years to complete before resulting in a discharge, itâs possible to file Chapter 7 bankruptcy about 1 year after receiving a Chapter 13 discharge.
Chapter 13 bankruptcy â¡ï¸ Chapter 13 bankruptcy: 2 years
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North Carolina Bankruptcy Forms
Most of the forms you are going to file with the court to start your Chapter 7 bankruptcy in North Carolina are national forms that are the same across the whole country. This is because the bankruptcy system is a federal system, which, other than some local variations, is pretty much the same everywhere you go. When you collect your online bankruptcy forms, it’s important to use the official versions, all of which can be .
Preparing For Chapter 7 Bankruptcy
Theres some protocol to follow in the months before filing for bankruptcy. Failing to follow these instructions could undermine your efforts.
Dont Pay Creditors It seems counterintuitive and you should definitely make routine payments. But any large or unusual payments could be viewed as preferential transfers. That means one creditor has benefited unfairly over others.
No New Debt A new creditor could claim you took out a loan or ran up the balance on a credit card without intending to pay it back. Legally, thats fraud and it will not be forgiven.
No Unusual Transactions Dont stray from the routine. Dont transfer titles of cars or homes. Dont buy luxury goods. Dont transfer your business or remove your name from it. They can all be classified as fraud.
Be Truthful You are required, while filing for bankruptcy, to provide full and complete information. You must disclose any debt, assets, accounts or other financial information. Failure to comply could lead to fraud and potential criminal charges.
Dont Touch Retirement Funds You are generally allowed to keep retirement plans and accounts, so keep them safe while considering bankruptcy and dont use those funds to pay down debt.
Never think you can get away with something sneaky or dishonest. Your bankruptcy lawyer is always a good resource for what you should and shouldnt do.
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Bankruptcy Frequently Asked Questions
Will I get my refund?
Yes, if your Bankruptcy case is still open and pending, the NCDOR will not hold or offset your refund to any outstanding liability.
Do I have to pay post-petition taxes and/or file post-petition returns?
Yes, the Bankruptcy only protects you for liabilities incurred up to the date you file bankruptcy. From your bankruptcy petition date forward, you are required to file and pay all states taxes as they become due.
Can I make an installment payment agreement?
The Department will not agree to an installment payment agreement if you are still in a current pending bankruptcy case.
If you choose to voluntarily send payments to the Department, you may send them to the following address:
I thought this was included in my bankruptcy. Why am I getting a bill?
Contact the Department at 754-2542 to verify that it has received notice of your bankruptcy filing. If the Department has received notice of your bankruptcy filing, then upon completion of your bankruptcy you will receive either a dismissal or a discharge from the courts.
A dismissal will allow all liabilities not paid during the bankruptcy to immediately return back to active collections.
A discharge has certain exceptions that allow some liabilities to return to active collections. Below is a list of the most frequent items:
Where should I mail my tax returns?
Doesnt Filing For Bankruptcy Ruin My Reputation And My Life
Not if it gets you out of debt. You might be able to run from creditors for a while, but eventually the stress of that overwhelms people. Bankruptcy lets you stop running and start over again. It may take a few years for you to get loans and obtain credit again, but at least youll have that opportunity. Bankruptcy is meant to give people who made financial mistakes a second chance. In todays turbulent economy, that is a good thing.
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Estimate Whether You Will Qualify For Chapter 7 Bankruptcy In North Carolina
As stated above, you often have to qualify to file Chapter 7 bankruptcy. Qualification is based on US means testing. The means testing is based on the household income and size of the household for North Carolina.
Bankruptcy Means Test In North Carolina
The bankruptcy means test in North Carolina often changes every 6 months. To help, we built the following bankruptcy means test calculator to help you estimate qualification, understand the cost and compare bankruptcy alternatives.
North Carolina Chapter 7 Bankruptcy Income Limits
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How To File Bankruptcy In North Carolina For Free
It often surprises people that bankruptcy courts and bankruptcy attorneys charge for their services. After all, folks who need to file for Chapter 7 bankruptcy in North Carolina typically don’t really have the extra money to spend on all of that. The good news is that if your household income is less than 150% of the federal poverty guidelines, you will likely qualify for a waiver of the court filing fee and maybe even the cost of taking your required credit counseling courses. A North Carolina bankruptcy is a process you can navigate without an attorney, especially if you are filing Chapter 7, not Chapter 13. So, if you’re willing to take the time and read up on what you’ll need to do to get North Carolina bankruptcy relief without a lawyer, you’re absolutely allowed to do so!
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Nc Bankruptcy Means Test: Do I Qualify For Chapter 7
OK, now that Ive eased your concerns about losing every piece of property that you own to the trustee, lets talk about bankruptcy reform and how it may have impacted your ability to qualify for Chapter 7. In 2005, Congress passed a piece of legislation known as the Bankruptcy Abuse Prevention and Consumer Protection Act . Among other things, this new law made it more difficult to file for Chapter 7 bankruptcy by implementing the bankruptcy means test. The means test is designed to steer consumers, who have the disposable income to pay something back to their unsecured creditors, into the Chapter 13 process rather than allowing them to shed all of their unsecured debt through Chapter 7.
When does the means test come into play? If you make more money than the average family of your size in the state of North Carolina, your last six months of income as well as your expenses will be run through the means test. Not all of your actual expenses will be used. Some will be based on average local expenses as determined by your friends at the IRS.
This information changes a few times a year. For example, if you filed for bankruptcy on or after May 1, 2017, the median family income data for North Carolina is as follows:
- 1 earner: $42,946
- 3-person family size: $64,521
- 4-person family size: $72,830
If you have additional questions, contact a lawyer. Most bankruptcy firms will be happy to crunch the numbers for you to see whether you qualify to file Chapter 7.
North Carolina Bankruptcy Exemptions
North Carolinians filing for bankruptcy have to use the North Carolina bankruptcy exemptions to protect their property. These exemption laws tell your creditors – and the bankruptcy trustee – that they cannot touch your furniture , household goods, clothes, books and similar items if it’s altogether worth less than $5,000. Similar provisions exist protecting your retirement accounts, tools of the trade, etc. You can protect up to $35,000 in equity in your home when you are in a Chapter 7 bankruptcy in North Carolina however, if you don’t need to use the entire amount, you can use up to $5,000 on anything else you own that would not otherwise be protected.
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Filing Without An Attorney
Individuals can file bankruptcy without an attorney, which is called filing pro se. However, seeking the advice of a qualified attorney is strongly recommended because bankruptcy has long-term financial and legal outcomes.
Filing personal bankruptcy under Chapter 7 or Chapter 13 takes careful preparation and understanding of legal issues. Misunderstandings of the law or making mistakes in the process can affect your rights. Court employees and bankruptcy judges are prohibited by law from offering legal advice.
The following is a list of ways your lawyer can help you with your case.
- Advise you on whether to file a bankruptcy petition.
- Advise you under which chapter to file.
- Advise you on whether your debts can be discharged.
- Advise you on whether or not you will be able to keep your home, car, or other property after you file.
- Advise you of the tax consequences of filing.
- Advise you on whether you should continue to pay creditors.
- Explain bankruptcy law and procedures to you.
- Help you complete and file forms.
- Assist you with most aspects of your bankruptcy case.
Bankruptcy Forms are available to the public free of charge.
- Use the forms that are numbered in the 100 series to file bankruptcy for individuals or married couples.
- Use the forms that are numbered in the 200 series if you are preparing a bankruptcy on behalf of a nonindividual, such as a corporation, partnership, or limited liability company .
- Sole proprietors must use the forms that are numbered in the 100 series.
How Many Times Can A Person File For Bankruptcy
- Posted on Nov 3, 2014
There is no restriction on the number of times a person can file bankruptcy. There is a restriction on the number of discharges a person can get through a bankruptcy. What happened to the Chapter 13 bankruptcy you filed two years ago? If it’s still active and you have been making timely monthly Chapter 13 payments, you may consider converting the Chapter 13 to a Chapter 7 case. If your Chapter 13 was dismissed with no discharge, you should be able to file the Chapter 7. However, if your previous bankruptcy was dismissed with a bar , you may be barred from filing another bankruptcy for a specified period of time. Set up an appointment with a bankruptcy attorney, and he/she can help you determine what would be your next step.
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What Was The Outcome Of Your Prior Bankruptcy
How soon you can file for bankruptcy again depends largely on the outcome of your prior bankruptcy case. If your debts were discharged and the court closed your case, nothing changes. You must wait two to eight years depending on the bankruptcy chapter you filed before and plan to file now.
If, on the other hand, your debts were not discharged and the court dismissed your case, different rules apply. If the bankruptcy court dismisses your case with prejudice, you may be prohibited from filing another bankruptcy for 180 days. A case is dismissed with prejudice when court orders are not followed or the bankruptcy rules are abused.
Bankruptcy fraud, such as not disclosing assets, lying, or acting in bad faith, has harsher consequences. The bankruptcy court could ban you from filing for bankruptcy for a long time or for life. If this happens, you would be unable to have your debts discharged indefinitely.
A courts dismissal of your bankruptcy case could also cut short the term of your automatic stay. A dismissal that occurred within one year of filing bankruptcy can result in an automatic stay of just 30 days. Even more dismissals within one year of filing can strip you of any automatic stay at all.
Special Homestead Exemption Rules
The homestead exemption protects your ownership interest in your home. You’ll need to read your state’s homestead statute to determine the specifics, such as the amount of equity and acreage covered, whether the exemption protects a manufactured home, and if you need to file a homestead exemption with the county clerk. But in all states, the property must be your residence. Also, you’ll need to comply with a federal timing lawhere’s the rule:
You must live in the home for more than 40 months before filing for bankruptcy. Otherwise, your homestead exemption is capped at $170,350 if you file on or after April 1, 2019 . This cap won’t apply if you bought your home with home sales proceeds from that state.
Find out more in Chapter 7 Homestead Exemption in Bankruptcy.
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The Chapter 13 Plan And Confirmation Hearing
Unless the court grants an extension, the debtor must file a repayment plan with the petition or within 14 days after the petition is filed. Fed. R. Bankr. P. 3015. A plan must be submitted for court approval and must provide for payments of fixed amounts to the trustee on a regular basis, typically biweekly or monthly. The trustee then distributes the funds to creditors according to the terms of the plan, which may offer creditors less than full payment on their claims.
There are three types of claims: priority, secured, and unsecured. Priority claims are those granted special status by the bankruptcy law, such as most taxes and the costs of bankruptcy proceeding. Secured claims are those for which the creditor has the right take back certain property if the debtor does not pay the underlying debt. In contrast to secured claims, unsecured claims are generally those for which the creditor has no special rights to collect against particular property owned by the debtor.
The plan must pay priority claims in full unless a particular priority creditor agrees to different treatment of the claim or, in the case of a domestic support obligation, unless the debtor contributes all “disposable income” – discussed below – to a five-year plan.11 U.S.C. § 1322.