Best Bankruptcy Lawyers in Raleigh, NC

If you are thinking about filing a Chapter 7 bankruptcy, individuals who have retired file quite often. Many times, people think that they have enough money in savings to survive after retirement, but after a period of time, they find out that they have fallen short on their plans.

There are generally three ways to find out about a bankruptcy filing. First, if you are a creditor listed in a case, you will receive ntice of the filing. Next, you can find out about a filing if the Debtor tells you that he has filed. Finally, the Bankruptcy Court has a website that can be used to verify a filing.

A 341 hearing is a hearing required by the Bankruptcy Code under Section 341. It is often referred to as the Meeting of Creditors. Once a bankruptcy case is filed, your hearing is usually scheduled with 30-45 days. This is the chance for your appointed Trustee to ask you questions about your case. The questions are generally fair, reasonable, and easy to answer. It is also the chance for your creditors to question you. Most of the time, your creditors will not appear at the hearing, but if they do, your attorney will be there to help you. Usually, there is an entire room full of people in your exact situation and there is no reason to be embarrassed or nervous.

Before doing anything, you should evaluate all of your options. Go to the Credit Counselor and see what they can offer. Consolidating under Chapter 13 is much more powerful. Often times, the credit counselor will call each of your creditors to see if they will accept a lower payment or a lower interest rate. The creditor has control over the payment terms. A Chapter 13 plan is designed to pay the creditors back according to your income and expenses. Interest is automatically eliminated for unsecured debt and reduced from certain secured debt. A plan is submitted to the Court and the creditors must accept the filing. A credit counselor is often powerless to consolidate back taxes, student loans, automobile payments, child support, co-signed debt or any other secured debt. A Chapter 13 can usually incorporate this type of debt.

Once a case is filed with the Court, all creditor contact must stop. A creditor is forbidden to send you a letter, call you on the phone, leave you a voicemail message or even send you a monthly bill. The laws are designed to protect you and the creditors can take NO further action to collect the debt.