Recent FAQs

When an individual files a chapter 7 or chapter 13 bankruptcy case in North Carolina, or anywhere, one of the first things to happen is that a trustee is appointed. This is an important role, and the trustee is broadly tasked with administering the bankruptcy case. What this means in practice depends greatly on bankruptcy chapter.

For most people, filing bankruptcy starts the journey of moving beyond problem debts. However in rare cases, an unexpected debt suddenly arises in the weeks or months after filing bankruptcy. Common examples might be an unanticipated medical expense or liability from an accident.

To answer this question, it is first helpful to describe what it means for a bankruptcy case to be closed or open.

Almost all residential mortgages require that the home be insured against causality, with the lender being a beneficiary. Such a requirement is not surprising. A residential mortgage involves lending a sizable amount of money, with the value of the home as collateral providing assurance to the lender of being repaid. Fire and other disaster risks the destruction of the collateral, and a bank would desire insurance for many of the same reasons an owner of a home free-and-clear would.