Since the financial crash there have been a lot of changes in the economic sector of the country. It made many people bankrupt overnight and snatched jobs from millions. The scenario has changed somewhat nowadays but the impact that it laid on us can still be felt. Many filed for bankruptcy petitions and the world was in complete financial upheaval.
Analysts say that many such petitioners are quite ignorant about the process and don’t understand the change it would make to their lives. Filing this petition should be the last option available to a person and one should have complete information about the whole procedure before putting their application for it. One should analyze his/her assets carefully before taking the decision and should also look for other programs such as NC foreclosure prevention fund etc that ease the crisis that he is facing rather than declaring himself bankrupt.
Let us understand more about the filing of bankruptcy process in North Carolina
Bankruptcy is actually a system of federal law therefore the process for filing for it whether it’s under chapter7 or chapter 13 it’s nearly the same in very state including North Carolina. But the difference lies in the applicability of state laws that determine the exemptions like the property you make keep and how much you need to pay your creditors etc. But before you file the application it is mandatory for you to attend compulsory consolidated credit counseling services by an agency that has been approved from the United States Trustees office. The courts in NC are divided into three districts Eastern, Middle and Northern. You can find all specific information on rules, forms etc on their particular websites.
Before you file the petition for bankruptcy in North Carolina you need to go through the Means test. Here your income is compared to the median income that is the median for the household of your type in NC. If the income is lower than it then you can apply under chapter7 otherwise if you are expressing your interest under chapter13 then you can go for a three year repayment plan. If you go for the current median income it is just under 38000 dollars for a single person household. These figures change periodically and therefore you can take the help of federal websites to determine the current bracket.
The whole process for bankruptcy involves a lot of paperwork and different sessions to ultimately get discharged. Property exemptions, asset information sessions with your creditors etc are included in it. The procedure can take a toll on you if you go for it unplanned therefore it is advised to go for credit counseling or consumer debt management sessions to understand the complete procedure and as well as for a better analysis of your financial assets.
The author is a financial analyst. In this article he explains the process of bankruptcy in North Carolina and the need of consumer debt management sessions before filing the petition.
Bankruptcy: How to file it In North Carolina?