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How to Handle Vehicle Loans in Chapter 7 Bankruptcy in Raleigh, NC

Figuring out what to do with your car loan is one of the big decisions you'll face when filing for Chapter 7 bankruptcy in Raleigh, NC. As your bankruptcy attorney, I'm here to walk you through the process and help determine the best path forward, given your unique financial situation.

Under Chapter 7 bankruptcy, you typically have three main options for dealing with vehicle loans:

Reaffirmation

With a reaffirmation agreement, you agree to continue making payments on your car loan as originally contracted, despite the bankruptcy. 

This allows you to keep the vehicle as long as you stay current. The lender will have you sign a reaffirmation agreement to reaffirm the debt. I'll review the terms to ensure they are in your best interest before filing the agreement with the court.

Redemption

Redemption lets you pay off the car at its current fair market value rather than the full loan balance. 

This can significantly lower the amount needed to own the vehicle outright. If you have access to funds (like from a friend or relative), redemption may be a smart choice - especially if you have negative equity. 

As your Weik bankruptcy attorney in Raleigh, I can help you determine the car's value and file a motion with the court to approve the redemption.

Surrender

If you can't afford the payments or no longer want the vehicle, surrendering it in bankruptcy is also an option. 

This erases your liability for any loan balance remaining after the car is sold at auction. While giving up your automobile is never easy, in some cases, it's the most financially prudent move. 

We can discuss transportation alternatives and ensure you're well-positioned to get another vehicle in the future.

It's important to note that North Carolina bankruptcy exemptions only protect up to $3,500 in motor vehicle value ($7,000 for joint filers), if the automobile is in joint names.

If your car has more equity than this, the trustee could potentially sell it to repay creditors. We'll carefully assess your vehicle's equity and explore ways to protect it. For instance, there's a  that may be applied depending on your case.

Also, keep in mind that if you're behind on payments, the automatic stay in Raleigh bankruptcy only temporarily stops repossession. The lender can still seek court permission to reclaim the car. That's why it's crucial to decide on your statement of intention and take action quickly.

Book Your Free Consultation

No matter which route you choose, know that I'm in your corner throughout the process. Together, we'll create a customized plan to handle your vehicle loan in a way that provides much-needed financial relief while also meeting your transportation needs.

If you're considering Chapter 7 bankruptcy and need guidance on managing your car loan, call Weik Law Office today at 919-845-7721 for a free consultation and set up a time to speak with one of our friendly professionals. 

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If you’re considering filing for Chapter 13 bankruptcy in Raleigh, one of your main concerns may be protecting your retirement funds. After all, it’s likely the largest asset you have and in some cases, the sole source of income in your senior years.

The good news is that your retirement plan is generally safe from creditors and debt collectors during a Chapter 13 bankruptcy case. However, there are some nuances to be aware of – which is why we strongly recommend talking to Attorney Weik before you make any decision.

Here’s what you need to know about protecting your retirement accounts when filing for Chapter 13 bankruptcy in Raleigh.

What Happens to Your Retirement Plan When You File for Bankruptcy?

When it comes to filing for bankruptcy in Raleigh, NC, your retirement plan will be treated differently depending on whether you file for Chapter 7 or Chapter 13.

In a Chapter 7 case, the court will typically exempt all of your retirement funds from liquidation. That means they won’t be used to pay off any of your debts.

In a Chapter 13 case, all of your retirement funds will also be exempt from liquidation – but they may still be counted as part of your income when calculating your repayment plan. This means that if you have a large balance in your retirement account, it could affect how much you owe each month under the plan.

The specifics depends on a case-to-case basis, and Attorney Weik will explain it to you during your free consultation.

Exemptions for Retirement Accounts in Raleigh, NC

In North Carolina, all tax-exempt retirement accounts are completely protected under federal law. This includes the following:

401(k)s

403(b)s Profit-sharing and money purchase plans

SEP and SIMPLE IRAs

defined benefit plans

North Carolina bankruptcy laws also offer unlimited exemption to Roth IRAs and IRAs under state law. And unlike many other states, this includes inherited IRAs.

 Be Careful About Withdrawing Funds from Retirement Accounts 

We understand that times can get tough when dealing with overwhelming debt – which is why it can be tempting to withdraw funds from your retirement accounts early as a way of paying off bills or making ends meet.

If creditors believe that you withdrew money with the intention of avoiding repayment (i.e., fraud), they could try to seize those funds as part of a lawsuit or garnishment order  even if they would normally be exempt under federal or state law.

That’s why we recommend talking to Attorney Weik before making any decisions about withdrawing money from these accounts prior to filing for bankruptcy in Raleigh NC. 

Protect Your Golden Years with Weik Law Office 

Filing for Chapter 13 bankruptcy can help keep your retirement funds safe while giving you breathing room from debt collectors.

To learn more about how this works for your situation, contact Weik Law Office today at 919-845-7721 for a free consultation. We look forward to hearing from you soon.

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If you're struggling with debt and considering filing for Chapter 13 bankruptcy in Raleigh, NC, you may feel overwhelmed and uncertain about your options. It's natural to worry that your debt is too big to handle, especially if you're unfamiliar with the bankruptcy process.

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How Cramdowns Work for Chapter 13 Bankruptcy in Raleigh

If you're struggling with debt and considering filing for Chapter 13 bankruptcy in Raleigh, NC, you may feel overwhelmed and uncertain about your options. It's natural to worry that your debt is too big to handle, especially if you're unfamiliar with the bankruptcy process.

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Potential to Keep Property by Reaffirming Debt | Chapter 7 Bankruptcy 

The thought of losing your property after filing for bankruptcy can be heartbreaking. Fortunately, Chapter 7 bankruptcy in Raleigh, NC has several tools that can help you keep some of your most important assets. One of these is reaffirming debt.

Reaffirming Debt in Chapter 7

Essentially, Chapter 7 bankruptcy gets rid of debt by discharging your unsecured liability with creditors. You don’t have to pay them anymore, and they can’t take legal action against you.

In the case of secured debt, which is debt that is secured by collateral such as a car. Creditors can also repossess the property as part of your debt settlement if you don’t state that you want to keep the collateral.

If you want to keep the collateral, you can reaffirm that debt instead.

This means that you agree to keep paying it even though you’re filing for bankruptcy, and in exchange, creditors won’t repossess the property.

However, the process is more complicated than that – which is why we recommend consulting with Attorney Weik before you may any decision about your Chapter 7 bankruptcy filing.

Which Debts Can Be Reaffirmed Under Chapter 7?

It’s important to note that not all assets are eligible for reaffirmation. You can only reaffirm secured debts, such as a car loan, and not unsecured debts, like credit card debt. They should also be essential to your day to day living. A basic car is usually okay, but luxury items like yachts, holiday homes, and expensive jewelry are generally not eligible for reaffirmation.

You Only Have a Limited Time to File the Agreement

If you choose to reaffirm debt, you must act quickly – the court only allows a small window of time for you to file the agreement before it discharges the debt.

In addition, the process of reaffirming debt is complicated. You want to make sure you fully understand the ramifications before signing, so it’s best to speak with a bankruptcy attorney in Raleigh, NC who can help you decide whether this is the right option for you.

Creditors Can Reject a Reaffirmation Agreement

Making things more complicated is the fact that creditors have the power to reject a reaffirmation agreement.

The key here is to have an experienced bankruptcy attorney review the reaffirmation agreement, then advise you on how to best move forward.

Explore Your Bankruptcy Options Today

Reaffirmation agreements are just one of the many ways Attorney Weik can help you use Chapter 7 bankruptcy in Raleigh, NC to regain financial freedom.

Depending on your situation, Attorney Weik can also help you protect your savings accounts, stop wage garnishment, and more.

Call Weik Law Office today at 919-845-7721 for a free consultation, and set up a time to speak with one of our friendly professionals.

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Who Will Know I Filed for Bankruptcy in Raleigh, NC?

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Nearly 1.5 million Americans file for bankruptcy every year. Even the world’s wealthiest and most powerful are not immune to financial trouble. Walt Disney, Toni Braxton, Mike Tyson, Larry King, money gurus like Dave Ramsey… the list goes on.

Still, we understand that the decision to file for bankruptcy is not an easy one. You may be worried about how it will affect your life and your future. One of the biggest concerns people have is who will find out that they filed for bankruptcy.

The answer? Not as many people as you might think. Here’s a look at who will know you filed for bankruptcy in Raleigh, NC.

The Bankruptcy Court and the Trustee Will Know

When you file for bankruptcy, the court and your trustee are the only people who are automatically notified. The court will send you a notice of your 341 meeting, and the trustee will send you a notice of your first payment due date.

Your Creditors Will Be Notified

Your attorney is also required to notify all of your creditors listed in your petition.

They will also receive a notice of the date of your 341 meeting of creditors. This is the meeting where you will meet with your trustee and answer questions under oath about your bankruptcy case.

Your employer is not one of your creditors, so they will not be notified by the court about your bankruptcy filing.

Your Family and Friends Don’t Have to Know

Your family and friends are not likely to find out about your bankruptcy unless you tell them. Bankruptcy is a public record, but it is not publicized in the same way as a criminal record.

Also, if some of your debts are joint debts with a family member or friend, they may be notified by your creditors about the bankruptcy.

Your Employer May Know, But Not Always

Your employer is not likely to find out about your bankruptcy unless you voluntarily choose to have your Chapter 13 payments deducted from your check. Wage garnishments also stop when you file for bankruptcy, but the reason is not disclosed to your employer.

If you are concerned about your employer finding out, you can talk to Attorney Weik.

Your Landlord or Mortgage Company May Not Know

Landlords are not notified about bankruptcy filings as long as you’re current on your rent payments. The reason is that back rent is not included in debts that can be discharged under Chapter 13 or Chapter 7 bankruptcy.

The Bottom Line

More people are seeing bankruptcy as it really is – a powerful tool for getting a fresh start.

However, it’s still a personal decision and for many Raleigh residents, one they’d rather keep private.

Attorney Weik will be able to put your worries to rest and shed light on who will – and who won’t – find out about your bankruptcy. Contact us today for a free consultation.

Call Weik Law Office today at 919-845-7721 for a free consultation, and set up a time to speak with one of our friendly professionals.

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Hospital Debt Due to COVID-19: Can Chapter 7 Bankruptcy in Raleigh Help?

Many Raleigh residents suffered tremendous loss due to COVID-19. Thousands lost their jobs, businesses closed, and even more faced costly medical bills from the virus. If you’re struggling to pay off hospital debt from COVID-19, you might be wondering if Chapter 7 bankruptcy can help.

The answer is yes, filing for Chapter 7 bankruptcy in Raleigh can wipe out most – if not all – of your hospital bills.

In fact, bankruptcy laws were created precisely for situations like this. To understand why, let’s discuss how medical debt is treated in bankruptcy.

Medical Debt is Considered “Non-Priority” Unsecured Debt

In bankruptcy, there are two types of unsecured debts: priority and non-priority. Priority unsecured debts must be paid first, while non-priority unsecured debts can be discharged (wiped out) completely.

So why do some debts get priority over others?

According to the courts, not all debts are created equal. Some debts deserve priority because they’re in the interest of the overall public good or owed to the government – like certain taxes. Others get priority because they’re for the benefit of dependent individuals.

Examples of priority debts are:

Alimony or spousal support

Child support

Certain income taxes

Sales taxes

Payroll taxes

Criminal fines

Wages owed to employees

As a result, most priority debts cannot be discharged through bankruptcy. You’ll still have to pay them back even after going through a Chapter 7 case.

Other types of debt don’t get this special treatment. This includes general, unsecured debts – like credit card balances and medical bills.

Medical debt is especially common among Raleigh residents. With the outbreak of COVID-19, many people have faced skyrocketing medical bills – sometimes totaling in the tens of thousands of dollars.

If this applies to you, we understand how crushing it can be. Health issues are stressful enough without the added financial burden. That’s why Attorney Weik is particularly passionate about helping our clients get out from under this type of debt.

How to Get Rid of Medical Debt in Raleigh Through Bankruptcy

The elements of a Chapter 7 bankruptcy are largely the same regardless of the type of debt you’re dealing with. Here are some of the things you can expect during the process:

Taking the Means Test

Before you can discharge your hospital debt through Chapter 7 bankruptcy, you must first pass something called the Means Test. It’s designed to see if your income is low enough to qualify for this type of bankruptcy.

The Automatic Stay

Being chased by creditors and debt collectors is one of the most stressful aspects of having unpaid medical bills. But when you file for Chapter 7 bankruptcy in Raleigh, an automatic stay goes into effect. Essentially, this means your creditors must stop all collection attempts – including phone calls, letters, and wage garnishments.

Filing Your Bankruptcy Petition

The next step is filing your bankruptcy petition. This document lists all of your debts, assets, and income. We highly recommend talking to a Weik bankruptcy attorney before officially filing your petition. One wrong move could jeopardize your entire case.

Other steps, like attending the 341 meeting, will be explained to you in detail by Attorney Weik.

Focus on Getting Better While We Help You Get Out of Debt

Dealing with a major illness is hard enough – the added stress of medical debt can make it nearly impossible to fully recover. If you’re struggling to pay off hospital bills from COVID-19, know that you have options.

Call Weik Law Office today at 919-845-7721 for a free consultation, and set up a time to speak with one of our friendly professionals.

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What is a No-Asset Case Under Chapter 7 Bankruptcy in Raleigh?

In a no-asset Chapter 7 bankruptcy case in Raleigh, all of your property is considered exempt. This means that you won’t lose your assets even if creditors file claims against you.

North Carolina has its own set of property exemptions, but some common examples are:

home equity covering a certain value

equity in one motor vehicle, to a certain value

household goods and furnishings, up to a certain value for each item

tools of the trade, to a specified amount

pensions

Still, note that not all property can be exempted. For instance, bankruptcy laws limit how much cash on hand or the monetary value of jewelry you can keep.

If you think you might have non-exempt assets, please mention it when you meet with our Weik bankruptcy lawyers in Raleigh, NC. Attorney Weik will evaluate all of your assets and recommend the best way to move forward.

Filing a no-asset case triggers a deadline for creditors to file a claim.

Creditors have the right to file a claim even if your case has no assets. Once you file for Chapter 7 bankruptcy in Raleigh, the trustee will send out a notice of bankruptcy filing to all creditors listed in your schedules and to other interested parties.

The deadline for creditors to file a claim is typically 60 days after this notice is sent. If you personally receive a proof of claim from a creditor, don’t handle it yourself. Call Attorney Weik ASAP to make sure you don’t compromise your case in any way.

Similarly, call us immediately if creditors continue to harass you after you file. Bankruptcy laws protect you with something called the automatic stay, and Attorney Weik will make sure that all your creditors follow it to the letter.

Creditors can still file an objection to discharge.

Individual creditors also have another option when they receive notice of your bankruptcy filing: an objection to discharge. This means they don’t agree that you should receive a discharge for the debt you owe them.

However, these cases are rare, and if it does happen to you, Attorney Weik is ready to assist you every step of the way.

Navigate Bankruptcy with Peace of Mind

US bankruptcy laws recognize that in order for debtors to rebuild their lives after surviving debt, they need to retain at least some of their assets.

In line with this, trust Attorney Weik to maximize every possible state and federal exemption applicable to your bankruptcy case.

Our goal is not just to help you get rid of your debts, but to help you establish the foundation of a financially secure future.

Call Weik Law Office today at 919-845-7721 for a free consultation, and set up a time to speak with one of our friendly professionals.

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 Can I Move to Another State After Filing for Raleigh Bankruptcy

The short answer is yes, you can move from North Carolina to another state after filing for Raleigh bankruptcy.

We get this question a lot here at Weik Law Office. In fact, there are many valid reasons why you may want to move out of Raleigh right after filing for bankruptcy.

For example, some people move for better job opportunities. Others need to join family members who may be critically ill or need help in some way. It could simply be that you want a fresh start.

Regardless of the reason, you’re free to relocate even if you just filed for Raleigh bankruptcy. However, this freedom also comes with some caveats that can affect your filing.

Bankruptcy Laws are Federal Laws

Because bankruptcy laws are governed by federal law, the major provisions of Chapter 7 and Chapter 13 bankruptcies are largely similar across all states.

There may be some minor variations from state to state regarding exemptions and other matters, but generally speaking, you can file for bankruptcy in any state you choose after meeting residency requirements.

As an example, North Carolina has its own guidelines for exempt and non-exempt property depending on the chapter you file.

So if you file for Chapter 7 bankruptcy in Raleigh NC, you can take advantage of property exemptions such as the $35, 000 homestead exemption, up to $25, 000 in college savings account, up to $2, 000 for tools of your trade, and more.

This can cause some complications if you’re moving to another state with different exemption rules before your case is complete (or even after).

Attorney Weik can help you navigate those potential complexities so that you can focus on the major life changes you’re planning without worrying about your bankruptcy case.

Bankruptcy & Residency Requirements

In the past, too many people tried to abuse the system by moving to another state right before or after filing, so they can keep more of their property if the state has more generous exemptions.

To discourage this practice, the federal government eventually established residency requirements for those who want to file for bankruptcy. Generally speaking, you need to have lived in a state for at least two years before your filing can be covered by the state’s bankruptcy laws.

If you move and file within two years, the court will consider where you lived prior to your move and apply that state’s exemption laws instead.

Basically, this means if you lived in one state for 5 months and then moved across the country and filed for bankruptcy soon after, the court would still consider your home state’s exemptions when reviewing your petition. The rules can change drastically between states, so it’s wise to consult a bankruptcy lawyer in Raleigh well ahead of your move.

Face Your Debt-Free Future with Confidence

Bankruptcy is designed to give you not just freedom from debt, but in other areas of your life as a whole. That includes not restricting your ability to travel in search of a better situation for you and your loved ones.

Whether you’re thinking of moving after filing, worried about wage garnishment, or facing eviction due to debt, Attorney Weik is ready to offer expert assistance.

Call Weik Law Office today at 919-845-7721 for a free consultation, and set up a time to speak with one of our friendly professionals.

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Can Chapter 13 Bankruptcy in Raleigh Get Rid of Tax Debts?

If you’re deep in tax debt and planning to file Chapter 7 or Chapter 13 bankruptcy in Raleigh to wipe it out, we’re here to warn you: bankruptcy will not discharge all tax debt.

In fact, be careful about any bankruptcy attorney that promises you it can be done. For instance, Attorney Weik has won tens of thousands of bankruptcy petitions for North Carolina residents. This includes helping them pause evictions, stop wage garnishment, and keep their vehicles while they recover from overwhelming debt.

However, the relationship between tax debts and bankruptcy is complicated, and at the Weik Law Office, we’re transparent about what bankruptcy can and cannot do.

Getting rid of tax debts falls under the latter, except in a few cases.

The IRS is a creditor just like any other.

A tax debt is any money you owe to the government, such as income taxes, business taxes, and excise taxes.

You can owe a tax debt for many reasons, such as filing incorrectly, not filing a return at all, or failing to make a payment that was due.

The IRS is a creditor like any other and has the right to collect on those taxes. They can take the following actions to collect that money:

The IRS can file a lawsuit against you in tax court.

The IRS can garnish your wages or bank account.

The IRS can file a federal tax lien against your assets (property).

Compounding the problem is that the IRS and other taxing authorities have very powerful collections tools at their disposal– tools that aren’t available for regular creditors.

As an example, if you’re behind on credit card payments or loan payments, the creditor cannot just seize money from your bank account. They must sue you first and obtain a judgment allowing them to do so.

In contrast, taxing authorities can just seize your bank account without having to take any further steps.

That’s why we understand Just how overwhelming tax debts can be.

Fortunately, there are a few cases when an experienced bankruptcy lawyer in Raleigh, NC can help you discharge your taxes through bankruptcy.

Discharging Tax Debts Under Chapter 7 Bankruptcy

You may be able discharge your tax debts under Chapter 7 bankruptcy, but there are strict conditions. Some of the requirements you must meet are:

The taxes must be income based, specifically, state income taxes.

The return was due more than three years before you filed for bankruptcy.

You have filed a tax return within two years before filing for bankruptcy.

Your tax assessment occurred more than 240 days prior to filing for bankruptcy.

The exact regulations are complicated. During your consultation, Attorney Weik will carefully evaluate your case to see if you qualify for a tax debt discharge under Chapter 7.

Chapter 13 Offers Another Option

Unlike a Chapter 7 debt discharge, a Chapter 13 bankruptcy plan is designed to reorganize your debts.

That means that you’ll make monthly payments to the Chapter 13 trustee for three to five years, and at the end of your case, you’ll get a discharge (release) of some or all of your debts.

How does this help with tax debts? You can:

Repay your tax debt in full or in part over time as part of your Chapter 13 plan

Pay less than you owe by getting rid of other types of debts

Get a discharge of other debts altogether after your Chapter 7 payment period, freeing up more resources you can use to repay your tax debts

Again, this depends on your particular case. As your bankruptcy attorney in Raleigh NC, Attorney Weik will walk you through both your Chapter 7 and Chapter 13 options to find the best possible solution to your debt problem.

Get Your Debts Under Control Today

While filing for bankruptcy in Raleigh, NC is not a cure-all, it does have a powerful impact in cases that do qualify for debt relief.

For example, it can help you eliminate many of life’s most crushing types of debt, such as medical debt and credit card debt. Trust Attorney Weik to advocate for you during every step of the journey.

Call Weik Law Office today at 919-845-7721 for a free consultation, and set up a time to speak with one of our friendly professionals.

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Are Creditors Garnishing Your Income or Bank Account? Consider Chapter 7 Bankruptcy in Raleigh, NC

The last thing you need when you're neck-deep in debt is a garnishment. It's a nightmare to have your paycheck reduced, and it triggers a vicious cycle of sinking further and further into debt.

If this is happening to you right now (or you’re afraid it’s going to happen), Weik Law Office can help.

Attorney Weik routinely helps clients take the proactive step of filing for Chapter 13 or Chapter 7 bankruptcy in Raleigh, NC to stop a garnishment in its tracks. But first, let's talk about the basics.

What is Wage Garnishment in Raleigh, NC?

Wage garnishment is when an employer receives a legal notice requiring them to reduce the amount of your paycheck under a court order. The money is remitted to the creditor, and you will receive an amount that satisfies the court's order.

The garnishment won't stop until they lift the court order or you satisfy the judgement. They can take as much as 25% of your income depending on the details of your situation.

For a closer estimate of how much they can take from your wages, talk to our bankruptcy attorneys in Raleigh, NC.

3 Common Reasons for Wage Garnishment

There are many reasons for which you can be subject to wage garnishment. These are the most common ones:

Child Support

Child support is an obligation that continues even after you get divorced or separated from your spouse. If you become unemployed, wage garnishment is one method used to make sure your child gets what they need. In most cases, that’s until they turn 18.

IRS Debt

Tax debt is often a consequence of an audit or missed deadline. The IRS has very stringent measures for tax debt, and wage garnishment is one of them.

There are other types of wage garnishment in North Carolina, and Attorney Weik will walk you through them during your consultation.

Fight Wage Garnishment with Raleigh Bankruptcy

Do note that not all types of garnishment can be stopped by bankruptcy. For instance, child support is considered a non-discharged priority debt, so you’re obligated to continue payments regardless of your bankruptcy status.

Despite some limitations, Chapter 7 bankruptcy is still extremely helpful.

First, it can stop the creditor from further reducing your take-home pay. Second, it bars creditors from starting new proceedings to collect any debts you may have (this includes new wage garnishment orders against you).

Under bankruptcy laws, this is a court directive and not a suggestion. So your creditors must comply with it regardless of your financial situation or the merits of the case.

The worst thing about wage garnishment is that it never stops until the creditor gets what they want. But with Chapter 7 bankruptcy and our bankruptcy lawyers in Raleigh NC, the table is turned and you're in control.

Stop Wage Garnishment Now

Garnishing your wages makes it extremely difficult to make any headway with your debt.

Don't lose hope - Attorney Weik has successfully helped thousands of clients stop wage garnishment by filing for bankruptcy, and you can be next.

Call Weik Law Office today at 919-845-7721 for a free consultation, and set up a time to speak with one of our friendly professionals.

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Joint Petitions: Filing for Chapter 13 or Chapter 7 Bankruptcy in Raleigh as a Married Couple

Going bankrupt as an individual is already hard enough. But drowning in debt as a married couple, especially when you have children, is another level of hardship.

First, know that it doesn’t have to be like this forever. We’ve helped hundreds of couples get out of debt through Chapter 13 and Chapter 7 bankruptcy in Raleigh, NC. With a Weik bankruptcy attorney by your side, it’s possible for you, too.

In this article, we’ll be talking about joint bankruptcy petitions, and why or why not it could be the right decision for you.

What are joint bankruptcy petitions for married couples?

As the name suggests, a joint bankruptcy petition allows both spouses to file for relief from debt at the same time.

While it can seem like the natural choice for a married couple, keep in mind that there are benefits and drawbacks to this decision. Our bankruptcy lawyers in Raleigh NC would be happy to discuss this in-depth with you, but for now, here’s a quick look at both:

Pros:

You only have to file once. This saves you time and money not having to go through the bankruptcy process multiple times for each spouse.

Both spouses are protected under federal law during this period of financial difficulty. No creditor is allowed to pursue one spouse without pursuing both spouses simultaneously, so you don’t have to worry about losing your spouse’s income or assets.

Under Chapter 13, both spouses will be accountable for any joint debt, which means that both are responsible for paying back the debt in full after bankruptcy is over.

This can make the burden lighter as you work together through the bankruptcy process.

Cons:

If one spouse makes significantly more than the other (or has higher debt), the spouse who makes less (or has lower debt) will be at a disadvantage.

Both spouses are responsible for all joint debts, which means that if one spouse doesn’t pay their share of the repayment plan during bankruptcy, neither can benefit from it.

Joint filing may not be right for you if your spouse has serious debt problems.

Exemptions and Joint Bankruptcy Petitions

Bankruptcy exemptions allow you to keep some of your assets and property, even if you file for bankruptcy.

Filing separately means that each spouse is entitled to their own exemptions. Depending on your situation, you may be able to keep more of what you have.

Under a joint filing, however, it depends on both your state’s exemptions, and whether that state allows petitioners to use federal exemptions.

Additionally, you can also take advantage of a double exemption to a specific asset if you and your spouse co-own it (aka it’s classified as marital property). For example, you can claim double the homestead exemption for your house if the title lists both of you.

Let Weik Law Office Simplify Bankruptcy for You

As you can see, joint bankruptcy petitions can get pretty complicated. In addition, filing for Chapter 13 or Chapter 7 bankruptcy as a married couple in Raleigh usually involves other people too, such as your beloved children.

Because of this, you want to make sure you take the correct steps throughout the entire process. Weik Law’s expert bankruptcy lawyers in Raleigh, NC are ready to guide you through each step, beginning with a conversation about your current debt and circumstances.

Call Weik Bankruptcy Attorney today at 919-845-7721 for a free consultation, and set up a time to speak with one of our friendly professionals.

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Converting Chapter 13 Bankruptcy in Raleigh to Chapter 7: What You Should Know

It’s nearly impossible to find financial stability when you’re in debt. Here at Weik Bankruptcy Attorney, we’re more than happy to help you explore options so you and your loved ones can get back on track.

One of these options is converting your Chapter 13 bankruptcy in Raleigh into Chapter 7.

Chapter 13 bankruptcy allows you to restructure your debts by paying them in installments. This is great for individuals who want to keep their assets and have the income to pay their debts back. Chapter 13 is designed to make those payments more manageable over the course of three to five years.

However, there are valid reasons why someone might want to convert their Chapter 13 filing into a Chapter 7 filing down the line.

Why People Convert from Chapter 13 to Chapter 7

Some of the most common reasons include:

A change in financial circumstances that makes it difficult or impossible for them to make payments according to a chapter 13 plan

This is especially likely after major life events such as divorce, serious injury, or the loss of a job

You want immediate debt relief instead of a years-long repayment plan

In some cases, a Chapter 13 bankruptcy in Raleigh can last as long as five years before the case is closed and debts are discharged. Although this chapter does provide flexible payment plans, this length of time may be less desirable than the immediate relief that chapter seven provides.

The chapter 13 bankruptcy filing was completed incorrectly, which can happen if it is not filed by an experienced attorney

An incomplete Chapter 13 bankruptcy might give creditors the green light to start calling or visiting debtors with demands for payment right away. If this happens to you, contact a bankruptcy lawyer in Raleigh NC ASAP, and we will help you trigger the automatic stay to stop creditors from harassing you.

How do you convert a Chapter 13 bankruptcy in Raleigh to Chapter 7?

The moment you start thinking about converting your bankruptcy chapter, call Weik Bankruptcy Attorney. Conversion is complex, and any mistake can cost you the chance for greater debt relief. It’s best to have our bankruptcy attorney in Raleigh NC guide you through the entire process.

In general, however, you’ll have to go through the following:

Bankruptcy Forms: Most of the forms you submitted for Chapter 13 can be transferred to your Chapter 7 proceeding. However, you will need to update them in case some information changed, such as your debts, income, and expenses. You will also need to submit documents related to any secured debts and the means test.

Proof of Claims: All Chapter 13 proof of claims are automatically transferred to the Chapter 7 proceeding. During this part, your creditors can file a new proof of claim, especially if more money becomes available as a result of the sale of non-exempt property under Chapter 7.

Bankruptcy Schedules: All schedules, statements, or lists previously submitted should be included with the Chapter 7 bankruptcy filing.

Meeting of Creditors: You will need to attend a new meeting of creditors as part of the conversion process.

Call Us Today to Begin Your Debt-Free Journey

Filing for bankruptcy in Raleigh is not an easy decision, but it has the potential to transform your life for the better. With the help of a Weik bankruptcy attorney, you will be able to navigate bankruptcy court with the dignity and respect that you deserve.

Call Weik Bankruptcy Attorney today at 919-845-7721 for a free consultation, and set up a time to speak with one of our friendly professionals.

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Raleigh Bankruptcy: Understanding Secured, Priority Unsecured, and Non-Priority Unsecured Debts

Debt is one of the most overwhelming things in life. And when you’re already carrying this impossible burden every day, the last thing you want is to talk about it.

But if you’re interested in the relief that Raleigh bankruptcy offers, the first step is to face the problem head-on. That means taking a close and honest look at the type of debt you have, so you can decide which kind of bankruptcy is right for you.

Don’t worry because you are not in this alone— Weik Bankruptcy Attorney will guide you through the entire process.

To help you take that first step, let’s discuss the three main categories that most debts fall under. These are secured debt, priority unsecured debt, and non-priority unsecured debts.

Secured Debt

A secured debt is one that you are legally obligated to pay back. This can be a mortgage on your primary residence, an auto loan for the family car, or other types of loans.

Secured debt is typically considered a priority debt, meaning that it must be paid back before your other debts.

If you want to keep your home or car, our Raleigh bankruptcy lawyer may recommend filing for Chapter 13 over Chapter 7. Filing under Chapter 13 can offer certain protections, so you aren’t forced to surrender them.

Chapter 13 bankruptcy is often called a “wage earner’s plan.” This is because it allows you to pay back creditors over three to five years while continuing with your life and keeping up with your payments.

If you think this may be right for you, we recommend looking into our other articles:

Can Chapter 13 Bankruptcy in Raleigh Help You Keep Your Car?

Can Filing for Bankruptcy in Raleigh Stop Eviction?

Priority Unsecured Debts

Priority unsecured debts don’t have collateral, but they must be paid in full much like secured debts.

Specifically, most priority unsecured obligations are to the government. Financial responsibilities to a previous spouse or your children are also considered priority unsecured debts.

Here’s a quick list of common priority unsecured debts:

Child support

Tax debts

Alimony

Repayment of government benefits

Criminal fines

Judgment from personal injury lawsuit in which you were driving while intoxicated or drugged

In other words, the government considers this type of debt essential, which is why you’ll still need to pay them back. For more information on how bankruptcy works for this type of debt, read more here:

Do You Still Have to Pay Child Support Under Bankruptcy in Raleigh?

Divorce, Alimony, and Raleigh Bankruptcy

Non-Priority Unsecured Debt

Non-priority unsecured debt is the third type of debt, and one which bankruptcy is extremely effective for.

This could include things like credit card bills, utility payments, medical expenses, and personal loans.

In most cases, bankruptcy will not require you to pay for non-priority unsecured debts in full. In fact, Chapter 7 bankruptcy is designed to discharge this type of debt— in essence, wipe them out fully, with some exemptions.

If you’re struggling with this type of debt, we strongly encourage you to read the following

Credit Card Debt and Bankruptcy in Raleigh

Can Chapter 7 Bankruptcy Stop Utilities from Being Shut Off?

Eliminate Medical Bills with Chapter 7 Bankruptcy in Raleigh

You Can Be Debt-Free Starting Today

In conclusion, knowing what type of debts you have can help you make the best choice about what kind of bankruptcy in Raleigh, NC you should file for. We would be honored to help because we understand that this can be a difficult process.

Weik Bankruptcy Attorney has helped hundreds of Raleigh individuals and families find relief from their debts through Chapter 7 and Chapter 13 bankruptcy in Raleigh, North Carolina. We’d be very happy to do the same for you.

Call Weik Bankruptcy Attorney today at 919-845-7721 for a free consultation, and set up a time to speak with one of our friendly professionals.

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Chapter 7 Bankruptcy in Raleigh and the 341 Meeting: What to Expect

If you are thinking about filing for Chapter 7 bankruptcy in Raleigh, NC, the 341 meeting is an important part of the process. It’s also known as the Meeting of Creditors, aka the people you owe money to. We know — it sounds incredibly intimidating!

However, you don’t need to worry with a Weik Law bankruptcy attorney by your side. Way before you attend the 341 meetings, we will make sure you’re prepared and confident about the entire process. And of course, we will be there to protect your best interests every step of the way.

In the meantime, we’d like to give you a quick look at what the 341 meeting is, and what role it plays in your debt-free journey.

What is the 341 Meeting?

During a 341 meeting, you are required to discuss your finances with a bankruptcy trustee and the people you owe money to. The people you owe money to (aka your creditors) will be there too, and they have the opportunity to ask about specific debts and assets that could potentially help them get back some or all of what they’re owed. In a 341 meeting, the trustee will also check to see if any assets need to be liquidated in order to pay your creditors.

You will be given a date and time for your 341 meeting, which is usually a few weeks after you file for bankruptcy. Before that, Weik Law’s bankruptcy lawyers in Raleigh NC will go over what you need to bring, where to go, etc. in advance of this meeting so that there are no surprises on your end when it comes down to it. Rest assured, you won’t be coming to the meeting alone. Your Weik bankruptcy attorney will be coming with you to make sure everything goes smoothly.

When you arrive, your Weik Law bankruptcy attorney will take you to a private room where you, the trustee, and your creditors will gather.

There are no set questions that must be answered, but bankruptcy trustees typically use this time to ask about your income, expenses, verifies the information in your bankruptcy filing documents, and other relevant information about your bankruptcy filing.

All of the information that you share during the 341 meeting stays strictly confidential between yourself, your Weik Law bankruptcy attorney, and creditors, so don’t worry about this.

What will happen after the 341 meeting?

After a successful 341 meeting, the trustee will decide if you are eligible to receive Chapter 7 bankruptcy debt relief. If your petition is approved, the trustee will also provide a discharge date for your debts – which is when all of these obligations have been satisfied and discharged.

Should I be scared of the 341 meeting?

A 341 meeting for Chapter 7 bankruptcy filers is not scary at all. It’s a simple, straightforward conversation to help your creditors understand what you’re trying to do and how they can work with this process so that everyone gets the most out of it. In addition, it’s a time to answer any questions that they may have and make sure everything is on the up-and-up.

The thought of being in a room with people you owe money to is an intimidating one. But trust us when we say there’s nothing to be afraid of— it’s just a routine part of the bankruptcy process.

Start Your Journey to a Debt-Free Life Today

The prospect of filing for bankruptcy and attending a 341 meeting is stressful for most people, and even more so if you are not represented by caring and compassionate bankruptcy lawyers in Raleigh.

Here at Weik Law Office, Attorney Weik will make sure that your legal questions are answered and any worries or fears about debt relief are put to rest.

Call Weik Law Office today at 919-845-7721 for a free consultation, and set up a time to speak with one of our friendly professionals.

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How Filing for Bankruptcy in Raleigh, NC Can Protect You from Wage Garnishment

If you are struggling to make ends meet, it may be time to file for bankruptcy in Raleigh, NC. Bankruptcy can protect you against wage garnishment and other debt collectors so you can focus on rebuilding your financial future. If you’re facing imminent wage garnishment or already losing your income because of it, Weik Law Office can help.

What is wage garnishment and how does it work?

A wage garnishment is when a creditor like a bank, an auto loan company or even your landlord (if you are behind on rent) takes money from your paycheck before it gets to you. This prevents people who owe debt from ever earning enough and may lead them down a path of never being able to pay back what they owe in time.

How filing for

bankruptcy in Raleigh, NC

can protect you from wage garnishments

Filing for Chapter 7 or Chapter 11 bankruptcy will stop creditors and collectors from getting funds directly out of your pay check or bank account while you are going through the bankruptcy process. This is called the automatic stay.

It can also provide protection for other debts like credit card debt, medical bills and personal loans without any type of direct wage garnishment. This will give you some breathing room to get back on your feet while you figure out your next steps.

Warning: Do not make deals with creditors about your wages without talking to our

bankruptcy lawyer in Raleigh

.

If your wages are already being garnished or you’re being threatened with it, contact us at Weik Law Office immediately. Do not accept deals from your creditors about your wages and payment plans, no matter how tempting the offer may be.

For instance, they may tell you that they’ll reduce your debt or stop garnishing your wages if you pay a specific amount. Remember that they’re only after one thing— getting as much money from you as possible, even if that means misleading you about what you owe.

Attorney Weik will help you understand your rights as a debtor and bankruptcy filer. In addition, we can help you safeguard your assets, such as your home, bank account, vehicle, tax returns, Social Security benefits, and more.

Curious about other ways bankruptcy can protect you? We invite you to read the following:

Can Filing for Bankruptcy in Raleigh Stop Eviction?

Bankruptcy and Your Tax Returns

Can Bankruptcy in Raleigh Stop Utilities from Being Shut Off?

Eliminate Medical Bills with Bankruptcy in Raleigh

What Happens to Your Bank Accounts Under Raleigh Bankruptcy?

Your Debt-Free Life Starts Right Now

We understand that you may be feeling discouraged and overwhelmed by the prospect of wage garnishment. But believe us when we say there is hope, and the sooner we can get started with your case, the better.

Our Weik bankruptcy attorney in Raleigh, NC can help protect your wages from any future seizure with a Chapter 7 or 13 bankruptcy filing. The process may be scary at first glance, but Weik Law Office has helped thousands of North Carolina residents like you get back on their feet financially and with dignity.

Call Weik Law Office today at 919-845-7721 for a free consultation, and set up a time to speak with one of our friendly professionals.