Getting Rid Of Your Debt by Filing Bankruptcy in North Carolina
Do you find yourself buried in debt? Is this making it difficult for you to afford necessary living expenses, such as rent, mortgage payments, food, water, clothing, medical expenses, etc.? Well, bankruptcy may be the solution for you. With the guidance of an experienced bankruptcy lawyer, you may be able to have some, or even all, of your debts discharged through a bankruptcy filing. A bankruptcy discharge releases you from personal liability for certain types of debt. In other words, you, as the debtor, will no longer be legally required to pay any of your debts that are discharged in your bankruptcy case.
In North Carolina, the types of debts than can be discharged include, but are not limited to, credit card debt, medical debt, unsecured personal loan debt, store accounts, vendor debt, personal liability resulting from the guarantee of another’s debt, some tax obligations and the deficiency balances that result from the sale of a repossessed car or foreclosed mortgage.
In addition, you can have some of your secured debt discharged, such as a car loan. However, you will need to surrender the collateral. Yet, if you wish to keep your car, and if your bankruptcy exemptions allow, you will need to keep paying your car loan and execute a reaffirmation agreement and have the agreement filed with the appropriate Bankruptcy Court.
In North Carolina, the types of debts that are generally not discharged include, but are not limited to, student loans, marital or domestic obligations (such as alimony or child support), some tax obligations, criminal restitution, debt that was incurred through fraud. Nonetheless, it is important to note that, though student loans are considered generally not dischargeable, they can be! For instance, if you owe on private student loans, there is a three-year statute of limitations. This means that if you have been in default on your private student loans for three or more years, your private student loan lender can no longer sue you to try and enforce the debt.
It is more difficult to have federal student loans discharged. This is because federal student loans do not fall under the statute of limitations. Instead, you will have to prove the existence of extenuating circumstances to get federal student loans discharged. For example, if you are chronically ill and are not able to work, or if you are terminally ill, this will possibly influence the court in your favor.
Before you file for bankruptcy, it is important that you consult with an experienced bankruptcy lawyer. Our North Carolina bankruptcy lawyer is here to guide you through the process! Contact the Neumann Law Firm for a FREE consultation! (828) 884-6575.