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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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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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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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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.

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Credit Card Debt and Bankruptcy in Raleigh

Drowning in credit card debt? You’re not alone. In fact, it’s one of the most common reasons why people finally decide to file for bankruptcy in Raleigh. The massive interests alone can keep you in a vicious cycle of minimum payments and ever-growing debt.

A question we get asked a lot here at Weik Law Office is, “Can I stop paying off my credit cards if I file for bankruptcy?”

We understand that this will be a huge weight off your shoulders, and we want that for you. But first, let’s discuss a few things you should know.

How Much Money You Make Will Affect Your Bankruptcy Filing

To begin, the courts will look at your disposable income. You may qualify for Chapter 7 in Raleigh if you don’t make a lot of money, or if you pass North Carolina’s means test. Chapter 7 can wipe out all of your unsecured debts, including what you owe on your credit cards.

If you earn too much to qualify for Chapter 7, however, you may want to file for Chapter 13 bankruptcy instead. AKA the wage earner’s plan, it gives you three to five years to pay back your debts at a rate that’s more affordable for you. After the repayment plan, the rest of your debt is wiped out, and that includes any remaining credit card debt.

Do note that many credit card companies are willing to negotiate and settle your credit card debt for less than the full balance.

Filing for Bankruptcy Will Stop All Harassment from Creditors

Often, the most stressful part of credit card debt is not the debt itself, but how aggressive creditors can be. They will do anything to get their money

This includes harassing you at home and at work. Trying to shame you into paying up by calling up your friends and family. Calling you at all hours of the day. They can even file a lawsuit depending on your debt and income. The pressure and harassment can be downright traumatic.

As your bankruptcy lawyer in Raleigh, NC, we’re happy to tell you about the automatic stay. Once you file for bankruptcy, creditors cannot contact you anymore. You deserve peace of mind as you try to get back on your feet, and the automatic stay is designed to give that to you.

Bankruptcy Will Factor in Your Assets, Too

Under Chapter 7, the bankruptcy trustee can liquidate your non-exempt assets to pay off your creditors. If you have a lot of assets you want to keep, then Chapter 7 may not be the right choice.

Like we mentioned above, you still need to pay back your credit card debt under Chapter 13 bankruptcy in Raleigh, NC. However, you have a greater chance of keeping your assets, including your home and vehicle.

Should you still make credit card payments if you’re going to file for bankruptcy?

No, you can stop paying off the debt after filing for bankruptcy. But if you’re not sure yet, we don’t recommend stopping your credit card payments abruptly. This can make you vulnerable to more harassment and lawsuits.

Get Rid of Your Debt with Weik Law Office

Weik Law has helped thousands of people just like you who are struggling with credit card payments and other debts. We are on your side. Most importantly, expect to be treated with respect and dignity every step of the way.

Contact Weik Law Office today at 919-845-7721 to schedule a FREE consultation with one of our trusted and friendly bankruptcy attorneys.

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The answer is yes, but it’s more complicated than that. While filing for Chapter 13 bankruptcy in Raleigh won’t wipe out your child support obligations, it will help you get caught up with payments. As a result, you can continue taking care of your child while you get back on your feet financially.

Child Support is Priority Debt

Congress deems child support debt is too important to eliminate in bankruptcy. Because of this, it won’t be discharged under Chapter 13 bankruptcy in Raleigh. In fact, you need to pay off all missed payments, aka outstanding child support arrears, through your repayment plan.

Catch Up on Child Support through Chapter 13

A key advantage of Chapter 13 bankruptcy is that it gives you time and breathing room to help you manage your debts using a convenient repayment plan. As we mentioned, any child support arrears you have pre-bankruptcy must be paid off in your repayment plan.

In many cases, catching up on child support can help reduce the amount you would have to pay to unsecured creditors through your plan (such as credit card companies).

Since most parents filing for bankruptcy would rather support their children than pay credit card debt, you get to hit two birds with one stone— getting current on child support payments while wiping out more of your unsecured debts.

You May Get More Protection from the Automatic Stay

The automatic stay is a powerful tool that stops creditors from contacting your or collecting on your debt after you file for bankruptcy.

However, it does not prohibit efforts to collect child support payments from property that’s not included in your bankruptcy estate. Under Chapter 13, however, your earnings become property of the bankruptcy estate. Therefore, creditors need to file a motion for relief from the automatic stay (and get the court to approve it), before they can take any action to pull child support from your earnings post-bankruptcy.

Some people don’t know this benefit of filing for bankruptcy. Having a bankruptcy lawyer in Raleigh, NC on your side will help you take advantage of such tools provided by bankruptcy law.

You Must Be Current on Child Support to Receive a Chapter 13 Discharge

Before the courts grant you a Chapter 13 discharge, you’re required to certify that you’re current on your child support obligations. Because of this, you have to pay off any child support payments you miss during your case. Otherwise, you won’t be able to get a discharge.

Protect Your Loved Ones Through Bankruptcy

The interaction between bankruptcy law and family law are complex. As your bankruptcy attorney in Raleigh, NC, we’ll make sure you get through the process with the least amount of stress on you and your child. 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.

The answer is yes, but it’s more complicated than that. While filing for Chapter 13 bankruptcy in Raleigh won’t wipe out your child support obligations, it will help you get caught up with payments. As a result, you can continue taking care of your child while you get back on your feet financially.

Child Support is Priority Debt

Congress deems child support debt is too important to eliminate in bankruptcy. Because of this, it won’t be discharged under Chapter 13 bankruptcy in Raleigh. In fact, you need to pay off all missed payments, aka outstanding child support arrears, through your repayment plan.

Catch Up on Child Support through Chapter 13

A key advantage of Chapter 13 bankruptcy is that it gives you time and breathing room to help you manage your debts using a convenient repayment plan. As we mentioned, any child support arrears you have pre-bankruptcy must be paid off in your repayment plan.

In many cases, catching up on child support can help reduce the amount you would have to pay to unsecured creditors through your plan (such as credit card companies).

Since most parents filing for bankruptcy would rather support their children than pay credit card debt, you get to hit two birds with one stone— getting current on child support payments while wiping out more of your unsecured debts.

You May Get More Protection from the Automatic Stay

The automatic stay is a powerful tool that stops creditors from contacting your or collecting on your debt after you file for bankruptcy.

However, it does not prohibit efforts to collect child support payments from property that’s not included in your bankruptcy estate. Under Chapter 13, however, your earnings become property of the bankruptcy estate. Therefore, creditors need to file a motion for relief from the automatic stay (and get the court to approve it), before they can take any action to pull child support from your earnings post-bankruptcy.

Some people don’t know this benefit of filing for bankruptcy. Having a bankruptcy lawyer in Raleigh, NC on your side will help you take advantage of such tools provided by bankruptcy law.

You Must Be Current on Child Support to Receive a Chapter 13 Discharge

Before the courts grant you a Chapter 13 discharge, you’re required to certify that you’re current on your child support obligations. Because of this, you have to pay off any child support payments you miss during your case. Otherwise, you won’t be able to get a discharge.

Protect Your Loved Ones Through Bankruptcy

The interaction between bankruptcy law and family law are complex. As your bankruptcy attorney in Raleigh, NC, we’ll make sure you get through the process with the least amount of stress on you and your child. 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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