Bankruptcy FAQs

Can I sue someone who has filed for bankruptcy?

September 15, 2013

Once someone files for bankruptcy, the bankruptcy court issues a protective order known as an “automatic stay” which requires creditors to cease collection efforts. The automatic stay prohibits creditors from filing a lawsuit to collect the money owed, making collection calls, or proceeding with foreclosure or repossession. If a creditor already has a lawsuit or foreclosure at the time the debtor files bankruptcy, the automatic stay will stop the lawsuit from moving forward. Once bankruptcy…

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Can I get rid of all of my debts in bankruptcy?

August 14, 2013

Getting rid of debt in bankruptcy is known as “discharging” debt. The primary function of Chapter 7 bankruptcy is to allow debtors to discharge their debt; however, not all debts are eligible to be discharged. For example, most tax debts cannot be discharged in bankruptcy. In order for income tax debt to be discharged in bankruptcy, there are certain requirements and criteria which must be met including the following: the tax debt must be related…

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Will bankruptcy stop foreclosure on my home?

July 15, 2013

If your mortgage lender has already initiated proceedings to foreclose on your home, then filing for bankruptcy under Chapter 7 of the Bankruptcy Code will not stop the foreclosure process; however, it may cause some delay in the process that would allow you to reside in your home a little longer. If your home is not in the process of foreclosure, then filing for Chapter 7 bankruptcy may be an option that would allow you…

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Should I withdraw money from my retirement account to pay my debts?

June 15, 2013

While your retirement account may be a source from which you can withdraw funds, it is generally not advisable to liquidate a protected asset to pay your debts. In Asheville and Western North Carolina, most retirement accounts are exempt from bankruptcy under Chapter 7 of the Bankruptcy Code. Therefore, if you file for bankruptcy, it is highly unlikely that you would be required to use funds from your retirement account to satisfy your debts. You…

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How Do I Pay My Attorney Fee?

April 28, 2012

When it comes right down to it, the primary role of a bankruptcy attorney is to create a strategic plan that ensures a brighter financial position for you at the end of the process than the one you were experiencing at the beginning. We will be clear and ensure you understand filing costs and attorneys fees, and only recommend bankruptcy if a measurable benefit can be acquired. Tax refunds, family funds, or more often than…

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