Q: What can a creditor do to me?

A: Debt collection is a 3-step process. They can contact you to collect the debt. But they may not make any idle or illegal threats – such as throwing you in jail, reporting you to social services, or taking your belongings that aren’t connected to the debt. Then they may obtain a judgment against you for the money owed. This judgment lasts 10 years. During that time, they may attempt to levy your property. This usually involves garnishing your bank accounts. If a creditor sends you a notice or an exemption form because they are enforcing a judgment, this is a very serious situation. Call our office immediately.

Q: What can a lawyer do about my debts?

A: As a Debt Relief Lawyer, I can do several things depending on your situation. We can help you stop collection agency harassment and to assert your rights under the Fair Debt Collection Practices Act. We can help you correct inaccurate information in your credit report. Or, we may be able to help you ELIMINATE your credit card debt, medical bills, payday loans, and personal loans completely.

Q: Aside from bankruptcy, how can you stop the collection agencies from calling me at home and work?

A: Call us about our Fair Debt Collection toolkit. We help you keep a record of any harassing or threatening calls. We will help you contact the agencies to force them to stop the calls. And, finally, we will help you sue the collection agencies for money damages if they violate your rights under the federal Fair Debt Collection Practices act and the North Carolina debt collection law. Most importantly, we will give you peace-of-mind by helping you understand exactly what a collection agency can an cannot legally do.

Q: How can you eliminate my credit card debt, medical bills, and personal loans completely?

A: We can help you determine if you are eligible for a discharge under Chapter 7 of the bankruptcy code. If you are eligible for this debt relief, you can completely eliminate ALL your unsecured debt (which includes credit cards, medical bills, personal loans as well as collection actions from judgments related to past foreclosures and repossessions). Just fill out our Free Evaluation or email or call and we will help you determine if you are eligible to eliminate your debt.

Q: What will bankruptcy do about the collection agencies that keep harassing me?

A: As soon as your case is filed, the Bankruptcy Court issues what is called an automatic stay. The automatic stay forbids your creditors from contacting you or taking any action to collect the debt. The Federal Courts impose strict penalties on creditors for willful violation of the automatic stay.

Q: Can Bankruptcy eliminate my tax debts as well?

A: There are several factors involved that we will need to discuss. But, generally, if the tax debt is more than three years old, does not involve fraud, and if there is no lien, you can eliminate the debt under Chapter 7 just as if it were a credit card bill.

Q: Don’t I have to give up everything I own if I file for bankruptcy?

A: Absolutely not! North Carolina law sets up exemptions that will protect your assets from creditors. We will determine if you can keep everything you own under NC law before you file for bankruptcy protection. Most of our clients who are eligible for Chapter 7 bankruptcy are able to keep everything they own while completely wiping out their unsecured debt. If you cannot protect everything, you may decide to file under Chapter 13 or we may need to help you find another way to deal with your creditors.

Q: What kinds of Debts can I not eliminate under Chapter 7?

A: You cannot eliminate student loans, certain tax debts, or court ordered support payments. You also cannot eliminate some debts incurred within 60-90 days of filing for bankruptcy. You cannot eliminate secured debts such as mortgages or car loans.

Q: I filed bankruptcy previously, can I file again?

A: If it has been more than eight years since you filed, yes. The answer is a little more complicated if you filed less than eight years ago. Call us now, or check back soon for a chart to determine whether you are eligible.

Q: I am married, do both of us have to file?

A: No. You can file individually. Depending on your circumstances, that may or may not be advantageous compared to filing together.

Q: I have been told if I file for bankruptcy I will lose my home, can I keep my home?

A: This is completely false. One of the main purposes of bankruptcy is for people to protect their assets like their home from their creditors. If you are current on your payments and you can protect your home equity from creditors. (At a minimum, NC individuals can protect $35,000 worth of equity in their primary residence or $70,000 for married couples), you may keep your home in a bankruptcy. If you are behind on your mortgage, there are options under Chapter 13 to catch up on your payments and keep your home even if it has gone into foreclosure.

Q: If I file for bankruptcy what happens to my credit score?

A: There is no doubt. Your credit score will go down as a result of a bankruptcy. But credit score is only one component lenders use in determining your credit worthiness. Lenders also look at your income and your debt burden. If you have missed payments, have collection accounts, have judgments, or repossessions, your credit score is already very low. Bankruptcy will lower the score even more. But bankruptcy can also eliminate your debt burden completely. In a lender’s eyes, this can make your more creditworthy since your income is free from the burden of your old debt payments. Moreover, once you make a fresh start, you will be able to rebuild your credit over time.

Q: If I file for bankruptcy, won’t everyone know I have filed?

A: Usually not. While a bankruptcy filing is a public court record, it is not easy for most people to find. It is on a court database that is not searchable from websites like google or yahoo. It is rarely reported in the newspaper unless it involves someone famous. If you are concerned about this, we can check your local newspaper to ensure that it does not report local bankruptcies before we file.

Q: How long do I have between the payment to open my case and the balance payment to file?

A: There is no time limit. While we do not file your case until we receive the full pre-filing fee, you can take as long as you like to pay that fee. If, however, it takes more than 60 days we will have to charge an extra $100 in order to re-run your credit report and to perform your court records search.

Q: Will I ever be able to get credit again?

A: Certainly. Many people are able to obtain credit within a year of their bankruptcy discharge. If they handle the credit wisely, they can begin to improve their credit score over time.

Q: If I file won’t my credit be messed up for 10 years?

A: If you file, the bankruptcy will stay on your credit report for 10 years. But, from the time of your bankruptcy discharge, you will have a fresh start to rebuild your credit with no debt burden. The alternative, to go on with debts hovering over you that will take many years to pay off – and will remain on your credit report for 7 years after that, is usually even worse. This is especially true with judgments which may be collected for 10 years after they are placed against you.

Q: Do I have to make a court appearance?

A: Usually no. The only appearance most bankruptcy filers make is an informal creditor’s meeting where there is no judge. The bankruptcy trustee will ask you a few questions for the record about your bankruptcy. The questions usually take less than 5 minutes.

Q: If I file Chapter 13, will I have to make monthly payments to every creditor?

A: No. That is why Chapter 13 is a debt consolidation. We will determine your payment based on what you can afford. You will pay the Bankruptcy Trustee and he or she will distribute that money to your creditors. At the end of your bankruptcy plan, any unpaid portion of your dischargeable unsecured debt (medical bills, credit cards, etc.) is completely wiped out.

Q: What about the companies I see on TV that say they will wipe out my debts without bankruptcy?

A: There are many unfounded claims being made by agencies that do not have the right to practice law. The Federal Trade Commission recently warned of these “credit repair” scams. The truth is, these companies depend on your creditors voluntarily agreeing to reduce your debt in exchange for your lump sum payment. Unlike legal debt relief, they cannot force your creditors to stop harassing you or even to participate in the deal. They cannot stop collection agency harassment or judgments against you. Only legal debt relief can. Furthermore, they usually charge far more to reduce a few of your debts than an attorney charges legally eliminate all of the same debts. If you are serious about dealing with your debt, please talk to an attorney before you consider one of these debt settlement programs. If you are participating in one of these plans, it isn’t too late. Call a lawyer for help in getting real debt relief.