Is Bankruptcy the Right Solution for me?
Just as no two people have exactly the same financial profile, no two people have the same bankruptcy case. Every case is different and your attorney should consider your personal circumstances to determine the best remedy for you.
Because of the complexity of bankruptcy laws, it is simply impossible to give a quick answer to the question, “Should I file for bankruptcy?” For that reason, and because I am required by law to provide you with written disclosures, it is not possible for me to give telephone or email consultations. I would be doing you a disservice if I did that.
If you are considering bankruptcy or would simply like more information, please contact my office for a consultation. There is no charge for bankruptcy consultations. You will meet with Mercedes Chut and you will receive a personal, thorough consultation. It is possible that bankruptcy is not the best solution for you. We will explore all potential solutions to your problems and not just bankruptcy. For example, you may be able to negotiate with your creditors and enter into a manageable repayment plan that does not involve bankruptcy. If that solution is an option for you, we could assist you in that process.
Can I do anything if I owe more on my mortgage than my home is worth?
The Bankruptcy Code allows the Court to modify many types of agreements with lenders for secured debt, but it does not allow the Court to modify the mortgage on your personal residence. However, there is a big exception to that rule. If you have a second mortgage or equity line that is completely unsecured, it can be "stripped" off in a Chapter 13 bankruptcy. Completely unsecured means that your home is worth no more than the balance on your first mortgage.
What if I have judgment liens on my home?
Chapter 7 and Chapter 13 are the most commonly used forms of bankruptcies for individual consumers. Chapter 7 results in a discharge and elimination of many debts while Chapter 13 involves a monthly repayment plan of 3 to 5 years. You can also view the website www.ncmb.uscourts.gov
for the middle district of North Carolina to learn extensively about Chapters 7 and 13.