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tax refunds in bankruptcy

Tax Refunds In Bankruptcy

Your tax refund is an asset in bankruptcy. This is true whether you file Chapter 7 or Chapter 13. Your refund is treated differently in each chapter, but generally you can keep your tax refund in bankruptcy.

Chapter 7

In Chapter 7, your bankruptcy assets are any assets you already own, or reasonably expect to own. A tax refund is a great example. If you have not filed your taxes yet, but you know that you will receive a refund, that refund is part of your bankruptcy estate. Because the refund does not represent income earned in the last 60 days, it cannot be exempted under N.C.G.S. 1-362. It can, however, be exempt under N.C.G.S. 1C-1601(a)(2). This is commonly known as your “Wild Card” exemption. It can be applied to any assets.

By claiming an exemption, you are exercising your right to protect certain assets. Your Wild Card exemption is available to cover up to $5,000 of assets. So, as long as your refund is $5,000 or less, you can use your Wild Card exemption to protect it. If you’re filing with a spouse, you both have a Wild Card exemption, for a total of $10,000 in Wild Card exemption available.

By protecting your tax refunds in bankruptcy with an exemption, your bankruptcy case can move forward without the bankruptcy trustee taking that asset. You will receive your discharge, and when you receive your tax refund, it’s yours to keep.

Another option is to receive and spend your tax refund in bankruptcy before you file. So long as you spend the refund on normal living expenses, you are not running afoul of the bankruptcy rules. Additionally, if you purchase household goods like furniture, you can still protect those new purchases with your household exemption under N.C.G.S. 1C-1601(a)(4).

Chapter 13

If you are in Chapter 13, the same rules apply as outlined above for Chapter 7. However, these rules are only applicable to the year in which you are filing your Chapter 13. Because a Chapter 13 case runs for three to five years, you need to be concerned about future tax refunds in Chapter 13.

If you receive tax refunds in Chapter 13 in a year beyond your first year, you must disclose this refund to the Chapter 13 bankruptcy trustee. Generally, you are allowed to keep $1,000 per debtor each year. Additionally, if you have any unused Wild Card you can apply it to your tax refunds received in subsequent years. Lastly, if your tax return shows that your refund is due to an earned income credit or a child tax credit, the refund is yours to keep.

If you cannot protect your tax refund in Chapter 13 in the above manner, you can also petition the court to keep your refund due to the fact it is necessary for living expenses. An example would be that you have been putting off repairs to your home or vehicle, and the non-exempt tax refund will be used for those repairs. Quite often, clients are making ends meet but putting off normal and routine household expenditures to do so. For this reason, the court entertains a request to use your tax refund in Chapter 13 to get ‘caught up’ on household expenses.

Adjusting Your Withholding In Bankruptcy

One allowable way to help insure you don’t lose any money in Chapter 13 is to adjust your tax withholding. This way, rather than receive a large refund in bankruptcy at the end of the year, you receive more income each month. Your Schedule I and J filings in Chapter 13 should reflect this, and your overall budget will change slightly; however, it will help you avoid an annual chore of trying to prove to the Chapter 13 court that you should be allowed to keep your tax refund.

Speak With A Charlotte Bankruptcy Attorney Today

Bankruptcy is a very powerful solution with long-lasting positive effects. If you’d like to speak with a lawyer about filing bankruptcy, we’re here to help. Consultations are free and answering questions is part of the job. Call us at 704.749.7747 or click for a FREE CASE EVALUATION and we will reach out shortly.

Bankruptcy And Mortgage Payments

Bankruptcy And Mortgage Payments

If you’re wondering how bankruptcy and mortgage payments work together, there is good news. Most bankruptcy clients are pleasantly surprised to find out they can keep their home in bankruptcy. After all, for most of us our home is our largest investment.

Chapter 7 And Mortgage Payments

If you are filing Chapter 7, you can keep your home if your equity in the home does not exceed the allowable exemptions in bankruptcy. Generally speaking, this is $35,000 per spouse or owner. Your equity is defined as the fair market value minus the total debt securing the home. We can also make adjustments for cost of sale (realtor fees, etc.) as well as repairs that you might expect a home purchaser to request. You can find one estimate of the fair market value of your home at Zillow.com.

When you file Chapter 7, you should be current on your mortgage payments, or less than 30 days behind. By the time you have your 341 meeting (about 45 days after filing), you’ll want to be sure you are current.

Chapter 7 And Your Mortgage Obligation

By filing Chapter 7, your mortgage debt is discharged. This means you technically no longer owe it. However, if you want to keep the property, you’ll need to keep the debt that goes with it. You will be given the option to sign a Reaffirmation Agreement in Chapter 7. This agreement renews the contract terms between you and the mortgage company, to be exactly what they were before you filed Chapter 7.

There are instances where you can keep the home and avoid signing a reaffirmation agreement, and your Charlotte bankruptcy attorney can discuss those instances in detail with you. In summary, you can keep your home in Chapter 7 and you may sign a reaffirmation agreement to go with it.

Chapter 7 And Surrender Of Your Home

You can also surrender your home in Chapter 7 if the mortgage payments are too much for you, or if the home is “upside down” (mortgage balance is higher than the fair market value). By doing this in bankruptcy, you avoid a situation where the mortgage lender can pursue you for any loss they take on the property. Your Chapter 7 filing protects you. You simply give the lender the home, and walk away from the debt.

Chapter 13 And Mortgage Payments

If you want to keep your home in Chapter 13, you can do so. This is true even if you are behind on mortgage payments at the time you file. Chapter 13 is unique in that it allows you to continue to pay your normal mortgage payment while slowly making up the amount you were behind at the time of filing.

Provided your Chapter 13 plan is approved and you follow the rules of Chapter 13, there is nothing your mortgage lender can do to prevent a successful filing. In fact, your mortgage lender is probably happy they are being paid in Chapter 13. When your Chapter 13 ends, you will be current on your mortgage and all of your pre-petition back payments will be caught up.

Speak With A Charlotte Bankruptcy Lawyer Today

If you have questions about bankruptcy and mortgage payments, call us at 704.749.7747 to discuss your situation. You’ll get answers to your questions, and you’ll understand your options. You can also click for a FREE CASE EVALUATION and we will reach out to you to discuss your case.

Can I Keep My Bonus In Chapter 13

Can I Keep My Bonus In Chapter 13?

You can keep your bonus in Chapter 13 provided you account for it in your Net Disposable Income allocated to creditors. When you file Chapter 13, your payment is partly based upon your “Ability to Pay” your creditors. Your ability to pay your creditors is determined by providing the court with a monthly budget: income minus expenses.

Generally speaking, additional funds that come into your ownership during Chapter 13 are property of the bankruptcy estate. As such, your Charlotte bankruptcy attorney will seek approval for you to keep those funds if possible. In the case of a bonus in Chapter 13, so long as you have already accounted for the bonus in your monthly income and expenses calculations, you can keep the bonus. Your Chapter 13 bankruptcy attorney will work with you to do this. Lastly, the way to account for the bonus is to simply take the average bonus, divide it by 12 (months in the year) and add that amount to your gross income calculations.

Can I Keep Tax Refunds In Bankruptcy?

Tax refunds are not “income earned in the last sixty days,” and as such, they are not exempt assets under NC sec. 1-362. If you have exemptions remaining under NC sec. 1C-1601(a)(2), you can protect your tax refund with that exemption. That exemption is commonly known as the “Wild Card” exemption and can be applied to any assets.

In a Chapter 13, you must petition the court to keep your tax refund. Generally speaking, each debtor will be able to keep the first $1,000.00 of a tax refund. If your refund exceeds this amount, you will need approval from the court to keep it. Your Chapter 13 bankruptcy attorney will assist in notifying the trustee of your refund, and providing an explanation as to why you should be able to keep it. In most cases, if you have a list of home improvements or vehicle repairs which need to be done, you can allocate the funds to those items. It is quite common that you can keep your entire refund in Chapter 13, based on this analysis.

Bonus Not Yet Earned

You may be wondering if you can keep a bonus in Chapter 13, if you have not already earned the bonus.If you have a potential bonus which you have not yet earned, there is good case law which supports the contention that those funds are not part of the bankruptcy estate and therefore they will be yours to keep. Our firm, together with The Law Offices of Kevin Radey, won a case on this very issue, in the Western District of North Carolina. You can read that case summary on Bloomberg Law.

Speak With A Charlotte Bankruptcy Attorney Today

If you’re considering filing Chapter 7 or Chapter 13, speak with an attorney today. Bankruptcy is a powerful solution which immediately affects your life for the positive. You can reach us at 704.749.7747 or click to request a FREE CASE EVALUATION and we will reach out to you.

Debt Settlement

Bankruptcy Or Consolidation?

If you are overwhelmed by the choice between bankruptcy or consolidation, there is great news: you have options. Most individuals wait much longer than they should before exercising their options regarding debt—do yourself a favor and act now. The solutions are powerful and the relief is immediate.

Debt Consolidation

Clients who have one looming debt, or smaller debts which are causing problems can consider bankruptcy or consolidation. Generally, debt consolidation combines your debts into one loan. You can accomplish this on your own with a personal loan or a home equity line. You can also hire a debt consolidation company to handle bundling your debt into one payment. If you enter into an agreement with a debt consolidation company, you will typically pay one party each month—the debt consolidation company. However, there are pitfalls associated with working with debt consolidation companies.

Pitfalls Of Debt Consolidation

Debt consolidation companies offer confusing, lengthy contracts which often promise very little to you. We consistently work with clients who believed their debt consolidation company had bundled all of their debt, only to find out it wasn’t true. Those clients make consistent payments and hold up their end of the deal. At the end, they find out there are still one or more credit card balances that remain unpaid. This is a horrible result! Finally, debt consolidation companies consistently remind you they are only estimating the arrangements they can reach with your creditors. In the end, their promises often go unfulfilled.

How Is Debt Settlement Different From Debt Consolidation?

One option in addressing debt is debt negotiation which leads to debt settlement. As a bankruptcy law firm, we have had success negotiating debt for our clients. Our strategy is to show the creditor that we are working with the client to file bankruptcy, which is true. However, in many cases the client would rather settle a debt than file a Chapter 7 or Chapter 13 bankruptcy. This is also true. In the end, the creditor is faced with the option of getting paid little to nothing in bankruptcy, or reaching a fair negotiated agreement with our firm.

The downside to debt settlement is that not all clients have the funds available to successfully engage creditors in negotiations. To reach your best negotiated agreement, the creditor will want the new lower balance paid off very quickly. They are not interested in lowering the balance AND accepting a series of monthly payments extending more than a few months.

Bankruptcy Is Often The Way To Go

If you’re trying to choose between bankruptcy or consolidation, let us help. Filing bankruptcy is one of the most powerful options a consumer has at their disposal. The amount of money you will spend to negotiate one credit card will often exceed the full bankruptcy fee to your bankruptcy attorney. Additionally, you address numerous debts at once. While clients have concerns about credit scores and keeping vehicles or homes, a free phone consultation usually puts the client at ease.

Final Thoughts On The Bankruptcy Or Consolidation Decision

First, we understand bankruptcy is foreign to most individuals. Second, we know there is stress and anxiety associated with debt and the mystery of filing bankruptcy. Lastly, we have seen over and over how our client’s lives change for the better simply by deciding to file bankruptcy. In fact, bankruptcy will change your life for the positive.Most bankruptcy filings usually end with the client giving the lawyer a hug—that should tell you a lot about the relief you will experience if you decide to file.

Speak With A Bankruptcy Lawyer Today

If you’d like to speak with a Charlotte bankruptcy lawyer today, we’re here to help. We are happy to discuss bankruptcy, debt consolidation, or debt negotiation. Part of the job is answering questions. You can reach us at 704.749.7747 or click for a FREE CASE EVALUATION. We know you have choices. We hope you choose to Recover With Us.

tax refunds in bankruptcy

Bankruptcy “Expertise” And The Layton Law Firm

We are happy to have been chosen by Expertise.com as one of the top 25 Bankruptcy Lawyers or Bankruptcy Law Firms in Charlotte for 2019. Their listing of bankruptcy attorneys in the top 25 can be found HERE. This is our second year on their list!

Yesterday, we also received a call from a bankruptcy attorney in Baton Rouge, LA wanting to know the details of our successful case regarding Bank of America bonuses for a Chapter 7 bankruptcy client. It’s always a compliment to be asked to discuss a case or a particular situation. We know, because often we are seeking advice from other attorneys for similar aspects of a case they handled. The bankruptcy community in Charlotte and throughout the country is very helpful to one another in that way. We are proud to be part of it.

Lastly, we are also proud of the Client Reviews our clients have chosen to leave for us. It’s a sign we’re not only doing good work. It’s also a sign we’re making clients feel good about their choice to use The Layton Law Firm, PLLC.

Considering Filing Bankruptcy?

If you’re considering filing bankruptcy, you deserve to find out more about your options. First, one conversation with a bankruptcy attorney will help you decide. Second, by finding out more about your options, you may discover there’s another way to address your debt concerns outside of filing bankruptcy. An example would be Debt Settlement.  Lastly, the peace of mind that comes with taking action is not to be overlooked.

Protecting Clients Is What We Do

Whether we are working on a personal injury settlement or a bankruptcy, our job is to protect our clients. As a result, we have very close relationships with our bankruptcy clients. Those relationships are necessary to make sure we are disclosing full and accurate information to the  court. Full disclosure is required, in exchange for the powerful relief of bankruptcy.

If a creditor challenges your bankruptcy filing, we will be there to defend you. If a trustee objects to any aspect of your filing, we will be there to defend you. Our negotiation skills and ongoing relationship with the bankruptcy court combine to help you get the best results possible.

Speak With A Charlotte Bankruptcy Attorney Today

If you are considering filing bankruptcy, you should speak with someone. A phone call or in-person meeting is often the best avenue for gaining real clarity about your options. Consequently, we conduct phone consultations every day. If you’d like to request a consultation, simply click for a FREE CASE EVALUATION. You can also call 704.749.7747 to speak with a Charlotte bankruptcy lawyer today. The consultation is always free and we’re here to help.

Emergency Bankruptcy Petition

If you need an emergency bankruptcy petition filed, you will need to move quickly. Using a bankruptcy lawyer is highly recommend, especially when filing an emergency petition. Bankruptcy can be a powerful tool to stop foreclosure, prevent judgments or collection of judgments, and discharge credit card debt, medical bills, and other debt. When you file an emergency bankruptcy petition, you usually use it to stop a foreclosure.

Chapter 13 Bankruptcy

If you’re using an emergency bankruptcy petition to stop a foreclosure, most likely you want to keep the house. If that’s the case, you’ll need to consider a Chapter 13 bankruptcy filing. A Chapter 13 allows you to stop the foreclosure, and propose a three to five year plan for repaying the mortgage payments you’ve missed. Provided your Chapter 13 plan is based on your disposable income each month, and proposes to pay back the full missed payments over the plan period, you should receive confirmation of your plan.

How Quickly Can I Get An Emergency Bankruptcy Filed?

Depending upon the situation, an emergency bankruptcy petition can be filed within a day or two. You will have to take the required pre-bankruptcy credit counseling course, which can be done on the computer and takes about an hour and a half. You’ll also have to pay a fee to your bankruptcy attorney in order to get the petition filed. Click here for a quick BANKRUPTCY FEE QUOTE from us.

Will An Emergency Bankruptcy Petition Stop Foreclosure?

Yes, the filing of an emergency bankruptcy petition will stop foreclosure. A notice of the filing will be sent to the county courthouse as well as the mortgage lender and their attorney. The automatic stay in bankruptcy will prevent the lender from moving forward with the foreclosure, provided your bankruptcy attorney follows the rules for Chapter 13. After the filing, provided your plan is confirmed and you continue to make on-time payments, you should continue moving in the direction of being paid and current on the mortgage.

Is There A Downside To Filing An Emergency Bankruptcy Petition?

The only downside to filing an emergency bankruptcy petition is the risk that you and your attorney were not able to be completely thorough in examining your financial picture prior to the filing. This could result in a Chapter 13 payment which is more than you can ultimately afford. This might also become an issue if you’ve made large transfers of assets in the months leading up to the emergency bankruptcy petition filing. This is not an issue for most clients, and the benefits of the emergency filing outweigh any potential downsides.

When Will My First Chapter 13 Payment Be Due?

The filing of your Chapter 13 case sets the payment due date going forward. If you file in the 15th of February, your first Chapter 13 payment will be due on or before the 15th of March. Each payment thereafter will also be due on the 15th.

Speak With A Bankruptcy Attorney Today

Are you facing a foreclosure and want to keep your home? An emergency bankruptcy petition filing may be the answer. Call us at 704.749.7747 or reach out for a FREE CASE EVALUATION and we will be in touch today. We know you have choices. We hope you choose to Recover With Us.

benefits of chapter 7

Benefits Of Chapter 7 — Bankruptcy Can Change Your Life

Filing Chapter 7 bankruptcy can change your life. We have seen over and over the benefits of Chapter 7, and how much relief it provides for clients. While we understand the desire to pay back creditors, we encourage clients to put their emotional and financial life ahead of creditors. This includes making smart choices for yourself and your family. The benefits of Chapter 7 can be part of that overall plan. We’ve written articles about Whether You Qualify For Chapter 7, which you can read as well.

Get Rid Of Credit Card Debt

Filing a Chapter 7 bankruptcy eliminates credit card debt, provided the debt is more than 90 days old. Credit card lenders have no defense against the benefits of Chapter 7 bankruptcy, so long as you abide by the rules of bankruptcy. Primarily this means disclosing all pertinent information to your bankruptcy attorney before filing, and being honest with the court.

Eliminate Medical Bills

If your medical bills are more than 90 days old at the time of filing your Chapter 7 bankruptcy, they will be discharged by the bankruptcy filing. Whether you can continue to treat with a doctor or medical facility after you’ve filed Chapter 7 depends on the provider. Emergency rooms and hospitals can’t refuse you treatment, whether you have unpaid bills or even if you’ve filed bankruptcy. As to smaller doctor offices, they can choose to no longer treat you for routine healthcare visits. The easiest way to protect a relationship with a doctor you like is to file bankruptcy, and then reach out to the doctor to tell them you have filed Chapter 7 but you will continue to pay on their bill. This will keep your relationship intact.

Clean Up Repossession Debt

If you have remainder debt from a repossession, a bankruptcy will remove your personal liability from that debt. In a vehicle possession, the lender will typically repossess the car and sell it. If you owe more than they recover at the sale, you are responsible for the remainder. By filing a Chapter 7 bankruptcy, you eliminate your liability on the remainder debt.

Eliminate Upside Down Debt

When you file Chapter 7, you have a choice as to whether to keep your property (and the debt that goes with it), or surrender your property (and the debt that goes with it). For example, if you own a vehicle worth $2,500.00 that has a loan balance of $7,000.00, you essentially own a car worth negative $4,500.00. If you went to trade in that vehicle on another vehicle, you would be carrying that extra debt with you into the new purchase. By filing Chapter 7, you can choose to surrender the vehicle to the lender, with all of the extra debt. It’s easier to get into a new vehicle than you might think—we help clients with this situation every day in our office, and it makes all the difference for them.

The same is true of home ownership. If you own a home with negative equity, you can choose to surrender that home and the debt, in Chapter 7 bankruptcy. This prevents the lender from forcing a foreclosure where you may be responsible for any mortgage payoff shortage after the foreclosure.

Discharge Old Tax Debt

While the general rule is that taxes survive Chapter 7 bankruptcy, there are plenty of exceptions. If your tax debt is more than 3 years old, and you filed the tax returns a significant time prior to filing your Chapter 7 bankruptcy, there is a good chance you can eliminate the tax debt with your Chapter 7 bankruptcy. The rules surrounding this are somewhat complicated and deserve a consultation with a bankruptcy attorney in order to accurately determine if your tax debt will qualify for discharge in your Chapter 7 bankruptcy. You can also consider a Chapter 13 bankruptcy to manage tax debt which is less than 3 years old.

Eliminate Judgments

The benefits of Chapter 7 can also include eliminating judgments you may have against you. In conjunction with your Chapter 7 filing, your attorney can file a motion which will address these judgments, provided you either do not own real estate, or you qualify under the equity rules regarding real estate in Chapter 7.

Speak With A Chapter 7 Attorney Today

Consultations are free, and it feels good to take steps to protect yourself and your family. We can be reached at 704.749.7747 or you can request a FREE CASE EVALUATION and we will reach out to you shortly. We know you have choices. We hope you choose to Recover With Us.

tax refunds in bankruptcy

Is My 403b Account Protected In Bankruptcy

Short Answer: Yes.

Much like a 401k plan, 403b retirement plans are protected in bankruptcy. If you are an employee of a state or county school, or a non-profit, you may have your retirement funds in a 403b retirement plan. While these funds do need to be disclosed upon filing bankruptcy, the bankruptcy trustee will acknowledge the bankruptcy exemption protecting those funds.

What If I Withdraw 403b Funds Prior To Bankruptcy?

If you take money out of a 401k or 403b account prior to bankruptcy, you should be aware that you will probably have tax consequences for early withdrawal. In terms of your bankruptcy, you should disclose those withdrawals to your bankruptcy attorney. Typically, those withdrawals will be treated as income for the purposes of passing The Means Test in bankruptcy. While this may sound unfair, this treatment is only for bankruptcy filing purposes, and usually will not upset the results of your Means Test. The Means Test helps to answer the question Can I File Bankruptcy?

Do 403b Loans Survive Bankruptcy?

If you have a loan against your 403b retirement funds, that loan will be treated as a secured loan for the purpose of your bankruptcy filing . In a Chapter 7 filing, the loan will survive the filing. In a Chapter 13 filing, the same result occurs; however, you will typically continue to pay on the retirement loan during your Chapter 13 repayment plan. This will help to reduce the balance and maybe even pay it off during the course of your Chapter 13 bankruptcy.

Speak With A Charlotte Bankruptcy Attorney Today

If you have questions about filing bankruptcy, we’re here to help. Case evaluations and consultations can be conducted by phone and are free of charge. You can call us at 704.749.7747 or click for a FREE CASE EVALUATION and we will reach out to you today. We know you have choices. We hope you choose to Recover With Us.

Chapter 11 Bankruptcy

Chapter 11 Bankruptcy In NC

A Chapter 11 bankruptcy is a way to reorganize your business debt while continuing to do business. Chapter 11 enables you to continue your livelihood without the constant threat of creditors to sue you, shut down your business, or otherwise disrupt you from being profitable.

When you file Chapter 11 bankruptcy, you and your bankruptcy attorney are proposing a plan to your existing creditors. Depending upon the profitability and assets of the ongoing business concern, your plan will propose to pay a percentage of your debt to creditors over time.

The Cost of Chapter 11 Bankruptcy

The court charges a filing fee of roughly $1,200.00, together with an administrative fee of $550.00. There are ongoing quarterly fees which must be paid to the court as well. Your attorney fees related to Chapter 11 bankruptcy are hourly. While your bankruptcy attorney will need to evaluate your case before estimating the attorney fees, it is a safe assumption your Chapter 11 bankruptcy will cost somewhere between $10,000.00 – $15,000.00. We know this is a substantial amount of money. Whether to file Chapter 11 will depend upon whether the cost of doing so is outweighed by the benefit to you and your business. Your bankruptcy attorney should help you sort through those questions as you gather information about the business together.

Do My Creditors Have To Accept My Chapter 11 Plan?

No, your creditors do not have to accept your Chapter 11 plan. However, if the plan is reasonable given the income, assets, and overall financials of the business, your bankruptcy attorney will argue on your behalf that the plan should be accepted. Generally, your Chapter 11 plan is a five year plan; however, you can propose a shorter plan if the shorter plan pays all creditors in full over the course of the plan. Generally, you must commit all of the business’s disposable income over the five year period to the plan. The calculation of disposable income is an equation involving income and expenses. If income and expenses change significantly during the plan, your Chapter 11 plan may need to be re-evaluated. In this regard, the Chapter 11 bankruptcy is reflective of your ability to pay, both at the time of filing and ongoing during the life of the plan.

Chapter 11 For Corporations vs. LLCs or Partnerships

A Chapter 11 bankruptcy for a corporation will only consider the assets of the corporation. To the extent the individual filing bankruptcy owns stock of the corporation, the stock assets must be considered in the assets calculations filed with the court.

A Chapter 11 bankruptcy for a partnership, LLC or sole proprietorship, is distinguishable from a Chapter 11 for a corporation or “C-corp”. In this filing, the individual and the business are treated as one for bankruptcy. The result is that all personal assets must be disclosed and considered when proposing the overall plan to pay back creditors over time in Chapter 11.

Chapter 11 vs. Personal Bankruptcy

In many cases, it is preferable to file a personal bankruptcy—Chapter 7 or Chapter 13—in lieu of filing a Chapter 11. The cost of filing is considerably lower, and the complexity of the case is different as well. If your company has few assets, you may be able to accomplish your goals by dissolving the company. This will relieve the company’s obligation under company debt. To the extent there is a personal obligation attached to the company debt, a Chapter 7 or Chapter 13 would serve to discharge the individual from that debt.

Speak With A Charlotte Bankruptcy Attorney

The next step is to speak with a Charlotte Bankruptcy attorney. Consultations and case evaluations can be done over the phone or in person. You’ll come away with a much deeper understanding of your options. This alone provides peace of mind. If you decide to move forward with a bankruptcy filing, we can discuss next steps and take action together immediately. Call us at 704.749.7747 or click for a FREE CASE EVALUATION and we will reach out to you. We know you have options. We hope you choose to Recover With Us.

sears bankruptcy

Sears Filed Bankruptcy – Should You?

News today made it very clear that Sears filed bankruptcy. As a bankruptcy law firm, any time we see a corporation filing bankruptcy, we know it’s a business decision. When it comes to your personal bankruptcy filing, we encourage you to think of it as a business decision as well. This means it’s time to set aside your emotions and do what makes financial sense for you and your family.

Taking The Emotion Out Of Bankruptcy

When we say you should set aside your emotions, we simply mean that your family’s financial health should come before any guilt you feel for not paying back creditors. It also means your family’s health is more important than any guilt you feel in general over filing bankruptcy. Filing bankruptcy can be the smartest financial decision you’ll make for you and your family. It provides a fresh start and you can build on that fresh start.

Picture The Future For Your Family

After years of living paycheck to paycheck, we know it’s hard to imagine a future for you and your family that does not involve scraping by. The truth is, that future does exist. Getting out from credit card debt and other types of debt is a huge step in the right direction. Imagine being able to pay all of your bills each month and have some left over for savings, retirement, or family outings. The federal bankruptcy code offers powerful relief from debt, while letting you keep your home and car by using the Bankruptcy Exemptions.

Learning From The Sears Bankruptcy

The Sears bankruptcy filing reminds us that bankruptcy can be a business decision. In fact, many businesses bounce back after bankruptcy, to be healthier than ever. We’ve seen the same from the clients we work with. Quite often, a few years after filing bankruptcy, we speak with clients who are purchasing a new home and who report their financial lives are incredibly healthy. We can hear it in their voices that they are still happy they chose to end the suffering and file bankruptcy. That makes it all worthwhile for us.

Speak With A Bankruptcy Attorney Today

If you have questions about bankruptcy, call us at 704.749.7747. Or click for a FREE BANKRUPTCY CONSULTATION and we’ll reach out to you. We look forward to helping you get answers to questions. We also know you have choices. We hope you choose to Recover With Us.