Facts About Bankruptcy

Bankruptcy is not a last resort. We help people file for bankruptcy in North Carolina every day. It is the quickest and most effective debt relief option available, and it can be customized to your needs and goals. A record of your bankruptcy will not be published. No one except your creditors and lenders will be notified.

Many people have misconceptions about the purpose, effects and morality of bankruptcy. We want you to be aware of all the facts about bankruptcy to help you make informed decisions about debt relief.

Bankruptcy is a fresh financial start. It is a federal right with foundations in the Bible, based on compassion and preservation of the family.

At Sigmon & Henderson, PLLC, in Gastonia, our attorneys can help you determine if bankruptcy is the right form of debt relief for your unique situation. Preserving the financial health of our community is important to us. Bankruptcy is one of the best and most powerful legal tools available to help people struggling with debt get back above water and start fresh.

How Can Bankruptcy Help You?

Bankruptcy is helpful to people in a variety of ways, depending on their unique financial situations, obligations and goals. It can help you get back on track financially and relieve you of debt burdens that are restricting your ability to keep up on important bills such as your mortgage, auto loan, tax payments and/or utilities.

Benefits Of Bankruptcy:

  • Immediate automatic stay: When you file for bankruptcy, whether Chapter 7 or Chapter 13, the automatic stay stops all wage garnishments, levies, lawsuits, repossession and foreclosure actions.
  • An end to creditor harassment: Our law firm will take over all communications with your creditors and ensure that harassing phone calls, mailings, emails and any threats of further legal action or repossession cease.

  • Elimination of unsecured debt: Filing bankruptcy discharges debts such as credit card debt, personal loans, medical debt and other debts that are not tied to property. It also can provide relief from second mortgages and home equity lines of credit.
  • Relief from state and federal taxes: Certain tax debts are forgiven in bankruptcy.
  • Reorganization of finances and debt: Chapter 7 "liquidation bankruptcy" allows you to free up more income to catch up and continue to make payments on assets you want to keep. Chapter 13 bankruptcy does the same thing, but can offer more protection of your home, car and other assets by creating a court-approved three- to five-year repayment plan that you can afford. The repayment plan allows you to become current on many debts, and forgiveness on some secured debt might even be available.

The Law Is On Your Side

The Bankruptcy Court and our guidance through the process will protect your rights, shield you from harassment and threats from creditors, and ensure that your financial future is mapped out responsibly.

Our lawyers will help you develop a plan that is designed for you specifically. Your plan will help you emerge from bankruptcy with improving credit, more disposable income and greater financial freedom and security overall.