Bankruptcy Attorney | Weik Law Office | Serving Raleigh, Durham, Cary, Chapel Hill, and Wake Forest, NC

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 20-45 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.

Yes, student loans can be listed in a Chapter 13 and once the case is filed, all interest and penalties will cease on the amount that is to be paid back through your Chapter 13 Plan. If you are a parent and you have obtained a student loan for your child, you can also list the loan in order to pay it back through the Chapter 13. Again, all interest and penalties will stop on the amount that is to be paid back through your Chapter 13 Plan.

If your student loan is not paid back in full, the remaining balance is non-dischargable. When your Chapter 13 Plan is complete, you can then contact the student loan company and set up payment arrangements to finish paying the portion that was not included.

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. Often, a medical problem or an unforeseen situation causes individuals in retirement to experience financial difficulty.

In a Chapter 13, a wage earner is defined as an individual with a steady, monthly income and retirement income, pension or social security is often used to help retired folks qualify to consolidate all of their debt.

A personal loan, so long as it is not secured by property, is an unsecured liability that can be discharged in bankruptcy.

It is illegal for anyone to fire an employee because they have filed for bankruptcy.

Absolutely! When you come into the office for your initial consultation, you will meet with an attorney who will conduct a complete financial analysis. If you decide that you want to retain our law firm to file your bankruptcy case, you will then be given a packet of information to complete. At that time, you will be instructed on how to obtain all of the information that is required to file. This will include instructions on how to obtain your credit report.

When you file for bankruptcy, you must assume or reject all of your leases or executory contracts. An apartment lease can be assumed if you are current in your payments and want to continue to pay on the lease. This would allow you to remain in the apartment for the remainder of the lease. If you desire to move out of the apartment, you can reject the lease at the time of filing for bankruptcy and the deficiency will be discharged after you file.

Filing for bankruptcy is a powerful thing, but to use the power behind the law, you must also remember that the creditors have certain rights also. For example, you cannot charge things on your credit cards right before you file and expect to discharge, or wipe these things out. You must also be aware that transferring any property before filing a bankruptcy can be examined by the Trustee that will be appointed to your case. Certain transfers are considered preferential and can definitely affect the success of your bankruptcy filing.

A Chapter 13 is a better option when you have a mortgage that is behind in payments. A Chapter 13 allows you to consolidate the arrearage in mortgage payments and pay the amount back over an extended period of time. If you file for straight bankruptcy (Chapter 7) and want to keep your home, you must be current on the payments on the date of the filing of the Chapter 7. The same is true with an automobile. Chapter 13 is a better option when you have a car note that is behind in payments. A Chapter 13 allows you to stop the repossession of the automobile and pay the car note back over an extended period of time.

Filing a bankruptcy can improve your credit score, especially if you have bad credit. When you file for bankruptcy and eliminate your debt, your income to debt ratio will improve, thereby improving your overall credit score. Also, the creditors know that you cannot file another bankruptcy for a certain period of time, and you become a better credit risk. If you file for a Chapter 13 bankruptcy, you can often use your payments that are being made to the Trustee as a credit reference. If you have good credit, then filing for bankruptcy may damage your score.