For many years, people regarded bankruptcy as an embarrassing end to their financial hardships. But the social stigma of bankruptcy has rapidly faded. Increasingly, bankruptcy is viewed as a viable legal option for families who want relief from a crushing burden of debt and who have a deep desire to get their lives back on track. For those families, bankruptcy is a lifeline that provides a fresh financial start. Bankruptcy procedures allow debtors to either erase outstanding debts or work out more favorable payment plans, giving them renewed control over their financial future. Tier 2 sponsor visa

There are many mistaken beliefs about bankruptcy. For instance, some people think that once they declare bankruptcy they will no longer qualify for credit. That’s simply not true. While a bankruptcy filing will appear on your credit record for up to 10 years following its discharge, you will still be able to obtain a car loan, a home mortgage or credit cards.  In many cases, bankruptcy can actually lead to improved credit scores — west sussex and an increased ability to borrow — in comparison to your pre-bankruptcy situation.

Bankruptcy proceedings begin with a filing in U.S. Bankruptcy Court, such as the one in Raleigh, North Carolina, which handles cases in the state’s Eastern District. Debtors use financial forms to disclose their income, property, debts and living expenses, and creditors may get a chance to respond to those disclosures. Once you are under protection of bankruptcy law, the court will order your creditors to stop their collection activities, including lawsuits, wage garnishments, repossessions and telephone calls demanding payment. When your bankruptcy proceeding is complete, you and your family will get a “fresh financial start,” with old debts either erased or worked out under better terms.

This site will help you understand some of the terms you’ll encounter during a bankruptcy proceeding, including:

Debt consolidation. At its core, bankruptcy is about debt consolidationgiving businesses or individuals faced with an unexpected financial crisis the ability to repay their debts. Debt consolidation can include the forgiveness of certain debts and the restructuring of others into one low monthly payment.   

Foreclosure. Foreclosure proceedings on your home typically begin after you’ve fallen behind on your mortgage payments by two or more months. For North Carolina residents, a new law entitles you to 45 days of advance notice before foreclosure proceedings can begin.

* Chapter 7 Bankruptcy: This is the most common choice for individuals who have little hope of repaying their current debts. Most debtors file Chapter 7 when monthly payments for their home, car and credit cards far exceed their take home pay. In a Chapter 7 proceeding, named after a section of the U.S. Bankruptcy Code, the debtor may be able to erase his or her unsecured debts — those loans that are not secured by an underlying asset. Credit card debt is one example. A Chapter 7 bankruptcy allows the debtor to keep his or her home and car.

Chapter 11 Bankruptcy: Chapter 11 allows businesses and individuals with significant debts to financially reorganize under the supervision of the U.S. Bankruptcy Court. Chapter 11 allows debtors to avoid the sale of their company or individual assets by giving them time to repay their debts while shielding them from the demands of their creditors.

* Chapter 13 Bankruptcy:  Chapter 13 is one of the most powerful tools available to individuals as they attempt to get their finances back in order. Chapter 13 is used when your bills exceed your income but you are still able to repay portions of your debt. Eligibility for a Chapter 13 bankruptcy depends on the debtor’s income level and the amount of the debt. Under a Chapter 13 proceeding, creditors may be forced to settle with debtors for less money than is owed.

If you’re considering bankruptcy, it is critical that you speak with an experienced Raleigh bankruptcy attorney. Bankruptcy laws are complex and a NC bankruptcy lawyer who concentrates in that practice area can explain all of the legal options available to you. For instance, your Raleigh bankruptcy lawyer can help you manage your bills and work out payment plans with your creditors. He or she will also help you prepare your forms, attend meetings with your creditors and serve as your advocate with the judge, trustee and creditors.