At Sigmon & Henderson, we understand that no one in North Carolina intends to go into debt. If you fall behind on payments to your creditors, it is probably because you do not have the financial capability to pay your bills, not due to a willful refusal to do so. However, creditors sometimes act as though you are withholding money from them on purpose, despite the fact that doing so can damage your credit.
Consumers who live in North Carolina who find themselves under a growing rather than diminishing mound of debt may wonder if filing for bankruptcy is right for them. In assessing this, they will also need to understand the two types of consumer bankruptcy and how they differ so that they can make the right selection for their current situation and for their future.
When hearing about a bankruptcy, most people in North Carolina may automatically think about a program via which they may lose precious assets in exchange for being released from debt responsibilities. This is essentially what can happen in a Chapter 7 bankruptcy and is the reason that even the U.S. Courts call this type of bankruptcy a liquidation plan. However, there may well be an alternate type of plan for consumers who need relief from excessive debt but also want to keep their homes or other assets.
For people in Gastonia who are struggling with debt, a personal bankruptcy might be the best option for them to regain a firm and stable financial status. Yet which form of personal bankruptcy is best? That may only be determined on a case-by-case basis. If one has fallen behind on their mortgage payments, a Chapter 13 bankruptcy may be their best option. Once foreclosure proceedings have been initiated, a Chapter only stays a foreclosure while the case is still active (which is usually only a few months). The lender can then proceed with the foreclosure once the case is over. In a Chapter 13 case, however, mortgage arrears can be included in a payment plan, meaning they will eventually be settled if the debtor continues to make their regular mortgage payments while their case is still open.
Your pressing financial problems have left you scrambling to figure out a solution to keep your home in North Carolina from going into foreclosure. With deadlines closing in, you are wondering if there are any other options for preventing this situation from happening. Fortunately, there may be alternative options to prevent a foreclosure or at the least, slow the process to allow you time to figure out your next step.
No one is immune from struggles with debt, so yours should not cause you to feel alienated from others in Gastonia. Oftentimes, if your liability troubles seem to be compounding, personal bankruptcy might be your best option for getting back on top of your financial situation. Yet many have incorrect notions as to their bankruptcy options. This is evidenced by the fact that many come to us here at Sigmon & Henderson, PLLC believing that a Chapter 7 bankruptcy is all that is available to them. Yet to pursue such a case, you have to meet the qualifying criteria.