Sometimes, a financing company will ask a borrower to sign papers pledging various household property (such as furniture, televisions, and appliances) as collateral to secure a new loan. Done properly, the creditor then has a legal right to demand turnover of the existing household property if the loan goes unpaid.
At our firm, we understand that two top concerns for many people considering bankruptcy are (1) keeping their possessions and (2) obtaining peace from worry over debt collection. For most individuals, there are bankruptcy options to keep most types of property.
Sometimes, a house becomes too expensive for its owners to continuing living in and paying the mortgage. Changes in income can make what was once affordable now unmanageable. Problems with a house or mortgage terms can push the cost of ownership beyond one's means. Sometimes, there are opportunities to work things out the mortgage. Other times, the smart decision is to walk away from the house and allow the bank to foreclose.
When an individual files chapter 13 bankruptcy, they have decided to voluntarily commit future income for paying certain debts. This type of bankruptcy uses a court approved plan to determine which creditors are paid what, and how much the debtor must pay to the
If you lease your car instead of owning and financing it, bankruptcy treats this automobile lease obligation differently than a secured car installment loan. In bankruptcy, leases are either assumed or rejected. An assumed lease continues on its own terms, while a rejected lease ends. In event of rejection, the car will be returned to the creditor for sale.
A motion for relief from the automatic stay is a common motion brought by a creditor, who wishes to take action that would otherwise be barred by the bankruptcy automatic stay. Most frequently, a motion for relief seeks court permission to foreclose on real estate or repossess a car or other vehicle. A motion might also be brought to in order to continue a legal proceeding outside of bankruptcy.
In bankruptcy, exemptions function as property allowance which enable a debtor to keep property through bankruptcy. Each state has its own exemption under state law, and there are also federal bankruptcy exemptions that are applicable in some situations. There are timing requirements not discussed in this answer, but residents of North Carolina will typically claim North Carolina Statutory exemptions. Several are very frequently claimed, including the homestead exemption, the motor vehicle exemption, the household property exemption, and the wild card exemption.
Exemptions are powerful property allowances that permit many debtors to keep most or all of their property in bankruptcy. However, some exemptions are limited in dollar value and cannot completely protect property from bankruptcy. Fortunately, there are options. Chapter 13 bankruptcy allows debtors to keep their property, paying an amount equal to the non-exempt value of their property over up to 5 years. In some cases, the plan will already require a greater payment amount and keeping the property will add no extra cost.
Serving Knightdale, Wendell, Zebulon, Rolesville, Wake Forest, Garner, Clayton, and the greater Raleigh area.
Representing bankruptcy clients in the Raleigh, Wilson, and Durham divisions of the Eastern and Middle Districts of North Carolina.
While we endeavor to provide accurate general legal information on this website, the facts and circumstances of any individual's legal situation may vary, and the information we publish should not be taken as legal advice on any matter. Communication made via this website does not create an attorney client relationship. Attorneys licensed exclusively in North Carolina.
Per 11 U.S.C. §528(a)(4), Fabricius & Fabricius PLLC is a debt relief agency. We are proud to assist individuals, families, & small businesses seeking bankruptcy relief in North Carolina.