North Carolina enforces federal bankruptcy laws. These laws designate what consumers are eligible for filing under any chapter of choice. The initial eligibility requirements identify a specific income level. Before a consumer files for their preferred chapter, they present information for all income sources.
How to Establish Eligibility
All tax returns, financial statements, and pay stubs for the last year identify all income sources for consumers. These sources include wages, business income, and proceeds for the sale of assets or property. Consumers who receive payments from stocks, dividends, or savings accounts present records for these earnings. A bankruptcy attorney in Huntersville, NC calculates the consumer’s full income for the previous year.
According to the law, any resident of Mecklenburg County with an income over $50,579 qualifies for chapter 13. This value is the median household income for the county. However, some exceptions apply based on the total number in the consumer’s household. Any income that is below this median helps the consumer to qualify for liquidation only.
Filing a Bankruptcy Claim
Before the consumer files their claim, they complete a credit-counseling course. The program is a state-approved course, or it doesn’t fulfill this prerequisite. Consumers who need a list of eligible credit-counseling programs acquire them from their preferred attorney. After the consumer completes the course, their attorney files their claim.
What Happens Next
A meeting with all creditors identified in the claim occurs. During the meeting, the creditors deny or approve inclusion of their account in the case. However, the judge overrules creditors at their discretion. The creditor presents the valid reason that is acceptable to the court.
For chapter 13, the court identifies the monthly payment and rules that apply. For chapter 7, the court identifies the trustee who manages the liquidation process. The court identifies all discharged debts and exemptions.
Bankruptcy helps some consumers become debt-free. The chapter chosen by the consumer designates what rules apply to their case. At any time that the consumer fails to comply with the court’s orders, the judge discharges the case. To learn more about filing for this debt solution, contact a bankruptcy attorney in Huntersville, NC at Lake Law PLLC today.
