Bankruptcy FAQs

Bankruptcy FAQs

Through an Automatic Stay, filing a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy will stop your creditors from taking legal action against you to collect money or repossess property.  Filing for bankruptcy will (i) stop the foreclosure of your house or mobile home, (ii) stop the repossession of your car, truck, or van, (iii) stop the termination of your utility services, and (iv) stop your creditors from contacting you to attempt to collect payment debts.

Filing a Chapter 7 Bankruptcy can often wipe out or discharge all of your debts, without requiring you to give up ownership of any of your property.

Filing a Chapter 13 Bankruptcy allows you to enter into a repayment plan with certain creditors that permits you to keep your secured property, such as a house or car, while you repay the amount owed as well as your regular monthly payments on the secured debt.

Filing either a Chapter 7 or Chapter 13 Bankruptcy will also provide you an opportunity to (i) challenge the validity of your debts, and (ii) take legal action against your creditors that violate consumer protection laws.

If you have more questions about what filing for Bankruptcy can do for you, please contact our bankruptcy attorneys today.

The Automatic Stay is a Court Order that, generally, automatically goes into effect when you file your Bankruptcy petition.  Through the Automatic Stay, the Bankruptcy Court orders your creditors to stop or stay any collection activity or legal actions against you.  As a result of the Automatic Stay, your creditors must (i) stop the foreclosure of your home, (ii) stop the repossession of your car, truck or van, (iii) stop the seizure of your property or bank accounts, and (iv) stop contacting you and attempting to collect payment on debts.

There are debts which the Automatic Stay does not usually affect.  Common examples of these instances include debts such as child support, post-separation support, and alimony.

Filing Bankruptcy will not wipe out certain debts specifically excluded in the United States Bankruptcy Code.  These debts include child support, post-separation support, alimony, certain types of student loans, and certain types of taxes.

Filing Bankruptcy will not wipe out debts that you incur after you have filed your Bankruptcy petition.

Filing Bankruptcy will not allow you to wipe out a specific debt while keeping an asset that serve as security or collateral for that specific debt.  For example, you cannot wipe out your mortgage payment, but keep your house.  Similarly, you cannot wipe out your car payment, but keep your car.  However, you can wipe out your mortgage or car payment if you are willing to give up ownership on your house or car (that may be a good option for you if, for example, your house or car is worth less than the money you owe on the house or car).

First, before you file for Bankruptcy, you must take a credit counseling course from an approved agency.  You must take this credit counseling course within the 180 day period prior to the day that you file your Bankruptcy petition.  You must file a certificate stating that you completed the credit counseling course along with your Bankruptcy petition.

Second, you should meet with a Durham Bankruptcy Attorney or Greensboro Bankruptcy Attorney.  The attorney will help you gather all the documents that you will need to prepare for your Bankruptcy filing.  Also, the attorney will advise you on whether filing Bankruptcy is your best option.

Yes, the Bankruptcy Court charges filing fees to file your Bankruptcy petition.  The fee to file a Chapter 7 Bankruptcy is currently $299.00, and the fee to file a Chapter 13 Bankruptcy is currently $274.00.  In addition to the Bankruptcy Court filing fees, our Durham Bankruptcy Attorney’s and Greensboro Bankruptcy Attorneys average fee is $1,000 for a Chapter 7 Bankruptcy, and $3,000 for a Chapter 13 Bankruptcy.

Maybe.  If you file a Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, you will have to attend a meeting of creditors approximately 30 days after you file your Bankruptcy petition.  This meeting does not occur in an actual courtroom, and a Judge is typically not present.  Instead, the Bankruptcy Trustee conducts the meeting, and some of your creditors may be present.  Whether you will have to attend Court for a hearing depends on the specific facts of your case; however, it is common for you to receive a discharge without ever stepping foot in a courtroom.

A Bankruptcy Trustee is an attorney who is appointed by the Bankruptcy Court to administer and oversee your Bankruptcy case.  In a Chapter 7 Bankruptcy case, the Bankruptcy Trustee reviews your assets, reviews your exemptions, and assesses your right to a discharge.  In a Chapter 13 Bankruptcy case, the Bankruptcy Trustee monitors, collects and distributes your payments into your repayment plan on behalf of your creditors.

The meeting of creditors gives your creditors the opportunity to ask you questions about your debts, financial status, and your Bankruptcy petition.  It is common for creditors not to attend the 341 Meeting.  However, the Bankruptcy Trustee will always attend the meeting, and he or she may ask you specific questions about your Bankruptcy petition, financial situation, or any other document that you have filed with the Bankruptcy Court.

Yes.  After you file your Bankruptcy petition, but before you receive your discharge, you must complete a personal financial management course through an approved agency.  When you complete the financial management course, the agency will provide you with a certificate of completion.  You must file the certificate of completion with Bankruptcy Court in order for the Court to grant your discharge.

In a Chapter 7 Bankruptcy, it generally takes 3-5 months after you file your Bankruptcy petition to receive your discharge.

In a Chapter 13 Bankruptcy, you receive your discharge once you have made all of the payments set forth in the repayment plan, which typically takes 3 – 5 years.

The final decree is the final document issued by the Bankruptcy Court.  When the Court issues your final decree, your Bankruptcy case is complete and you are no longer considered in to be in Bankruptcy.

The Kreger Thacker Law Firm’s Bankruptcy Attorneys represent clients in bankruptcy cases in Durham County, Guilford County (including the cities of Gibsonville, Greensboro, High Point, Jamestown, Oak Ridge, Pleasant Garden, Sedalia, Stokesdale, Summerfield and Whitsett) and Orange County (including the cities of Carrboro, Chapel Hill and Hillsborough).