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Filing Bankruptcy Over 55

Jun 22, 2020

Filing Bankruptcy Over 55

Special Issues When Filing Bankruptcy When Over 55

Unfortunately, aging doesn’t make individuals immune to financial challenges. The same financial problems that plague younger generations can also take their toll on Americans age 55 and older. However, older citizens may face special issues that younger people do not when filing for bankruptcy. Sometimes filing for bankruptcy does not make sense for seniors. For some individuals over 55, filing for bankruptcy is the best financial decision they can make to provide them with economic stability. To find out if bankruptcy is right for you, it is best to meet with a well-versed North Carolina bankruptcy attorney who can examine the specifics of your situation. Here are some points to consider.

Protecting Home Equity

A significant number of individuals over the age of 55 have substantial equity in their homes. Although the homestead exemption protects some equity in your home, if you have too much equity, bankruptcy might not make sense for you. Any equity you have in your home that exceeds the exemption, in a Chapter 7 bankruptcy, the trustee can take the excess to pay your creditors. Your North Carolina bankruptcy lawyer can explain further how this works.

Protecting Retirement Accounts

The good news is that nearly all tax-exempt retirement accounts are exempt from bankruptcy. This includes:

  • 401(k)s
  • 403(b)s
  • Profit-sharing
  • Defined-benefit plans

Additionally, IRAs and Roth IRAs are exempt up to a specific amount. Under Federal nonbankruptcy exemptions, your retirement benefits are fully exempt if you are a:

  • Civil, foreign, or military service employee
  • Railroad worker
  • CIA employee
  • Veteran
  • Military Medal of Honor Roll recipient
  • Social Security benefit recipient

When you hire an experienced North Carolina bankruptcy attorney, you can determine which of your accounts and how much will be exempt from bankruptcy.

Protecting Social Security Benefits

Another special consideration that is unique to older Americans is social security benefits. To qualify for bankruptcy, your social security benefits are not counted in the means test. However, your payments are only exempt if they are kept in a separate financial account and not combined with other monies.

Protecting Retirement Funds

If you plan to receive money from your retirement account, your North Carolina bankruptcy lawyer can discuss how doing so will impact your bankruptcy. Unlike social security benefits, retirement withdrawals are treated as income to qualify to file bankruptcy. For exemptions, your retirement withdrawals are treated like cash. Unfortunately, this exemption is not a significant amount. However, if you do not file bankruptcy, once withdrawn, your retirement funds are subject to bank levies sometimes used by creditors.

Reach Out to an Experienced North Carolina Bankruptcy Attorney Today

No matter your age, you deserve a fresh start. If you think bankruptcy makes financial sense in your situation, now is the time to talk to a skilled North Carolina bankruptcy lawyer. Your attorney can review all of your financial circumstances to help you determine if filing bankruptcy is the best option for dealing with your debts at this time. Get your free no-obligation bankruptcy consultation at King Law Firm by calling (800) 635-1683 or use our confidential online contact form.

Five Dischargeable Debts in a Chapter 7 Bankruptcy

Jun 22, 2020

Five Dischargeable Debts in a Chapter 7 Bankruptcy

Five Dischargeable Debts in a Chapter 7 Bankruptcy

For many, the purpose of filing for bankruptcy is to wipe away most debts. Bankruptcy is a legal option for Americans who are finding it difficult, for whatever reason, to pay off their debts. Often, these debts are causing additional problems such as the risk of repossession of a vehicle, eviction, or foreclosure on a home. When a debt is discharged in bankruptcy, the debtor is no longer liable for paying it. Although they may choose to pay it for one reason or another, such as keeping their vehicle, they are not legally obligated to do so. If you are looking at your options for debt relief, it’s time to meet with a well-versed North Carolina bankruptcy attorney who can help you understand which of your debts can be discharged.

Credit Card Debt

Unless you recently incurred a lot of credit card debt or opened a new card, all of your credit card debt will be discharged in your bankruptcy. Not only will you no longer owe the debt, but it will also be removed from your credit report or marked as included in your bankruptcy. The credit card debt itself will no longer have an impact on your credit score.

Personal Loans

Whether you have payday loans or other types of personal loans, you can also say goodbye to these debts when you receive your bankruptcy discharge. Even personal loans from friends and family are dischargeable.

Medical Bills

It doesn’t matter if your medical bills include an emergency surgery, a NICU stay for a new baby, an ER visit for a broken leg, or copays from seeing your own doctor, bankruptcy wipes out those debts. Be sure to gather all of your medical bills and give them to your North Carolina bankruptcy lawyer so that they can ensure they are included on your list of debts.

Vehicle Repossessions and Deficiency Balances

If you had your car repossessed, you likely have fees and a deficiency balance in your name. Once you file for bankruptcy, you do not owe these debts anymore. If you still have your vehicle and want to keep it, talk to your North Carolina bankruptcy attorney about options for keeping your vehicle and reaffirming your loan.

Mortgages and Foreclosure Balances

If your home was already foreclosed upon, a bankruptcy discharge means you will not have to pay for any remaining balances.  If you are still in your home, you are no longer personally responsible for your mortgage balance. However, this does not mean you can remain in your home and not pay your mortgage. Continuing to pay your mortgage will allow you to stay in your home. This should be discussed with your attorney as well.

Seek Bankruptcy Debt Relief with a Qualified North Carolina Bankruptcy Lawyer

We have helped clients just like you find a way out from under their debt. If you are not sure how you will pay your debts, reach out to a skilled North Carolina bankruptcy lawyer. Schedule your free no-obligation bankruptcy consultation with a North Carolina bankruptcy attorney at King Law Firm by calling (855) 206-0052 or use our online contact form.

Can Bankruptcy Protect My House?

Jun 22, 2020

Can Bankruptcy Protect My House?

Can Bankruptcy Protect My House?

Worries about losing your home are incredibly unsettling. Many people who are concerned that they might lose their house due to financial duress look for alternatives so that they can stay in their homes. One viable alternative for many homeowners is filing a Chapter 7 or a Chapter 13 bankruptcy.  Whether this option is viable in your individual situation depends on multiple factors. If you are in danger of losing your house or fear that you may soon be, don’t delay. Schedule a consultation with a knowledgeable North Carolina bankruptcy attorney today.

Bankruptcy Can Protect Your Home Depending on Specific Factors

Filing bankruptcy is not an automatic guaranty that your home will be protected. You will need to discuss the following with your North Carolina bankruptcy lawyer if one of your goals is to keep your home:

  • If you should file a Chapter 7 or a Chapter 13 bankruptcy
  • How much equity you have in your home
  • How the North Carolina homestead exemption applies to your situation
  • If you can continue to pay your mortgage in the near future

Keeping Your Home in a Chapter 7 Bankruptcy

When a Chapter 7 bankruptcy is filed, the trustee sells your nonexempt assets and pays your creditors with the proceeds. Under federal bankruptcy laws, you are afforded some exemptions, meaning that the trustee cannot sell it, and you get to keep it.  The homestead exemption applies to the equity you have in your home. In North Carolina, it protects as much as $35,000 in equity of any real property. This exemption is doubled if married spouses are filing a joint bankruptcy petition. If the debtor is age 65 or older, or the property is held as tenants by the entirety or joint tenants with the right of survivorship, and the debtor’s spouse has died, the exemption is $60,000.

You will need to calculate how much equity you have in your home. Start with the current market value of your home and subtract all of your mortgages and liens. The sum is your current equity. Keep in mind that a Chapter 7 bankruptcy does not provide a way for you to make up your mortgage arrears. You will need to work something out with your lender to pay the arrears, such as a repayment plan or a modification, in order to keep your home in this type of bankruptcy.

Repayment Plans in Chapter 13 Bankruptcy

Chapter 13 bankruptcy allows you to keep your property and pay your creditors over time. Since you get to keep your property, your home is protected. If you are behind on your mortgage, the arrears can be made up through a Chapter 13 repayment plan. Your arrears and the amounts of other debts you will be required to pay will be combined and spread out into a payment plan of three to five years. As long as you stay current on your mortgage and complete the repayment plan, you can keep your home. You must be able to make enough money to stay current on all your bills and pay your Chapter 13 payments each month.

Afraid of Losing Your Home? A North Carolina Bankruptcy Attorney Can Help

To find out how you can protect your home, get your bankruptcy started with King Law Firm. Call (855) 206-0052 or use our convenient online contact form. We offer free no-obligation consultations and can meet with you at one of our several office locations or in a location that is convenient for you.

What to Expect in a Chapter 13 Bankruptcy

Jun 22, 2020

What to Expect in a Chapter 13 Bankruptcy?

What to Expect in a Chapter 13 Bankruptcy?

All types of bankruptcy options have basic things in common. However, each has its specific requirements and processes. If you are thinking about filing Chapter 13 bankruptcy, it is reasonable to have many questions and concerns. You might be wondering how the process will work and what you will be required to do.  When you meet with a North Carolina bankruptcy attorney, they can answer your questions and tell you what to expect in the Chapter 13 bankruptcy process. Filing Chapter 13 bankruptcy could be the key to a fresh financial start.

The First Steps in Chapter 13

You will provide your lawyer with all of the necessary information to file your case. This will include information such as:

  • Tax returns
  • Bank statements
  • Bills from creditors
  • Employment information
  • The value and type of your assets

Together, you will create your Chapter 13 payment plan. Your North Carolina bankruptcy lawyer will file your bankruptcy for you once they have completed all the forms. You are required to pay a filing fee and provide documentation that you participated in mandatory credit counseling education from an agency approved by the United States Trustee’s office.

Plan Confirmation Process

You may need to start making your monthly Chapter 13 payments before your plan is approved, as your payments will start the month after you file. Once you file, your creditors and the trustee assigned to your case will review your payment plan. They have the right to object to it, but you will be allowed to modify it. If you can amend your plan so that no one objects, it will likely be accepted by the court at your confirmation hearing. The judge can only approve plans that meet the following criteria:

  • You have enough income to pay your creditors through the plan
  • You created your plan in good faith
  • It aligns with bankruptcy law

Making Payments

You will continue to make these monthly payments over a three- or five-year time span, depending on how you structured the plan and some other factors. For example, if you could have filed Chapter 7 instead of Chapter 13, you will more than likely have a three-year plan. If you are able to complete your payment plan, your bankruptcy will be complete, and your debts will be gone. You will also be required to take another debtor education course at the end of your plan.  If you are not able to complete your plan, you still owe your debts, and you will be subject to continued debt collection actions.

Questions about Chapter 13 Bankruptcy? Contact a Skilled North Carolina Bankruptcy Lawyer

If you are struggling to pay your debts, filing Chapter 13 bankruptcy may be the optimal solution. Our team can help. King Law Firm is a member of the National Association of Consumer Bankruptcy Attorneys and has a track record for helping countless individuals and couples recover financially through a successful Chapter 13 bankruptcy filing. Call (855) 675-1978 or use our convenient online contact form to schedule your free consultation today with an experienced North Carolina bankruptcy lawyer.

Bouncing Back from a Bankruptcy

Jun 22, 2020

Bouncing Back from a Bankruptcy

Bouncing Back from a Bankruptcy

Bankruptcy is a personal financial decision. For some individuals, it is the most responsible action to take in light of their circumstances. It is also an opportunity for a new beginning, and many filers feel a sense of freedom and relief once the process is finished. With a fresh financial start in life and taking steps to improve your finances going forward, you can successfully bounce back from your bankruptcy. In fact, your North Carolina bankruptcy attorney can provide you with advice on what to do after your bankruptcy filing and after your discharge.

Strategize for Rebuilding Your Credit

Although you may qualify for the first loan you can find after your bankruptcy filing, it usually isn’t in your best interest to take out loans immediately after bankruptcy.   Unfortunately, for many people, it’s an easy way to get caught up in debt again. Strategizing how you will utilize credit and what forms you should apply for should be one of your first steps after filing for bankruptcy.

Some experts recommend avoiding credit cards and loans altogether if you can. With high-interest rates and annual fees, and some credit cards even requiring a security deposit, they often are not worth it. Consider other ways to manage your cash flow and take a break from all forms of credit for a few months at a minimum. When it is time to get a loan or apply for a credit card, make sure you shop around to get the best rates.

Review Your Credit Report

Now is the time to ensure that all of your discharged bankruptcy debts have been removed or marked as such from your credit report. You should also look for other inaccuracies on your report, such as accounts that are not yours or reported late payments that are not correct. When you do decide to apply for a line of credit, you can be assured that your credit report is an accurate representation of your credit health. Cleaning up any errors on your credit report can also help your credit score increase faster.

Have the Right Mindset

Just like anything else in life, you need to have the right mindset and attitude to bounce back from bankruptcy. When you hire a seasoned North Carolina bankruptcy lawyer, you will receive help with this. Think of your bankruptcy as a business decision. You can get the maximum benefit from your fresh start when you see it as a learning experience. Be mindful of restoring your credit and showing creditors that you are a good credit risk. Make your payments on time and keep your credit card balances low.

Get Your Fresh Start with a Knowledgeable North Carolina Bankruptcy Lawyer Today

If you are considering a bankruptcy filing, discuss all of your available options with a knowledgeable bankruptcy attorney at King Law Firm. We have many office locations in North Carolina to assist our clients. We can also meet with you at other convenient locations. Schedule your free consultation with King Law Firm by calling (800) 635-1683 or use our confidential online contact form. One of our experienced North Carolina bankruptcy lawyers is available 24/7. 

What is Cross-Collateralization in Bankruptcy

May 12, 2020

Cross-Collateralization in Bankruptcy

What is Cross-Collateralization in Bankruptcy? 

Individuals who apply for a loan and sign off on an application are responsible for all of the information which is contained in the agreement. However, many individuals do not read the small print when they sign loan agreements and other contracts, and they are not aware that these agreements oftentimes contain a cross-collateralization clause which is part of the agreement.

Moreover, these cross-collateralization clauses can create serious complications for individuals who are trying to discharge their debts by way of a Chapter 7 bankruptcy proceeding. 

The North Carolina bankruptcy lawyers at King Law Firm can review your financial circumstances and determine whether filing for bankruptcy is the best legal option for your case, considering all of your financial circumstances. If so, our dedicated legal team can help you throughout every step of the process. Please call us today to find out more about how we can help you with your bankruptcy matter.  

Defining Cross-Collateralization

Lending institutions, including banks and credit unions, use cross-collateralization as a way to secure more than one loan with just a single asset. By using cross-collateralization, a debt (such as credit card debt) that is normally an unsecured debt turns into a secured debt. For example, cross-collateralization occurs in a situation where a credit union uses a motor vehicle as collateral to secure both a vehicle loan, as well as a credit card which is issued by the same bank.

Impact of Cross-Collateralization on Filing for Bankruptcy

Cross-collateralization can have an impact on filing for bankruptcy. Many individuals file for bankruptcy – and in particular a Chapter 7 bankruptcy – in hopes of discharging credit card debt that has become unmanageable. However, in cases where a vehicle is also used as collateral to secure a credit card by means of cross-collateralization, the debtor may be faced with a dilemma.

With respect to loans which are cross-collateralized, individuals who have declared a Chapter 7 bankruptcy are left with the following options:

  • Continue paying on the loans which are currently outstanding
  • Hand over the collateral to the bank or credit union
  • Obtain a lien release on the motor vehicle by filing a motion to redeem in a bankruptcy court and paying the lump-sum loan value which is outstanding on the motor vehicle
  • Work with the bank or credit union to negotiate some sort of loan reaffirmation agreement, which would allow for repayment terms that are different from the bankruptcy loan agreement’s terms.

An experienced North Carolina bankruptcy attorney can help you decide which of these options would be best for you under your circumstances. 

Contact a North Carolina Bankruptcy Lawyer Today

At the King Law Firm, our legal team is committed to helping you make the best legal decisions for you and your finances. To schedule a free case evaluation and legal consultation with an experienced North Carolina bankruptcy attorney, please call us at (800) 635-1683 or contact us online today for more information.