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

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.

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.

If you are facing a levy from the Internal Revenue Service or the State of North Carolina, you will be able to stop the levy by filing a bankruptcy case. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order which prohibits the government from continuing it’s levy. When a Chapter 13 case it filed, it provides you with an opportunity to compel the governmental unit to accept repayment of the debt and stops the levy previously entered.

If you are facing a seizure of personal property by a bailiff or court officer, you will be able to stop the seizure by filing a bankruptcy case. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order which prohibits a judgment creditor from following through on a seizure. When a Chapter 13 case is filed, it provides you with an opportunity to compel a creditor to accept repayment of the judicial lien that was previously imposed upon the property.

If you are currently experiencing a garnishment, you will be able to stop a garnishment by filing a bankruptcy case. As soon as a Chapter 13 or Chapter 7 is filed, the Bankruptcy Court issues an order that prohibits a creditor from garnishing or levying any of your assets, including wages and income tax refunds.

Credit cards are considered unsecured debt and a Chapter 13 stops all interest on unsecured liability. A Chapter 13 often allows you to pay only a portion of the unsecured debt and when the Plan completes in three to five years, the debt is paid in full. You can finally see the light at the end of the tunnel.

When an individual files for Chapter 13, there is a provision in the Bankruptcy Code that provides that the filing of a Chapter 13 not only stops any action to collect a debt from the debtor, but also stops any action to collect a debt from a co-signor who is listed on the petition. In order to fully protect the co-signor under the Chapter 13, the debt must be paid in full at the contract rate of interest. The payments; however, can often be extended and therefore the monthly payment to the creditor can be decreased.

To consolidate your debt under a Chapter 13 Plan, you must have a regular and consistent source of income. Monthly retirement or social security is often used to qualify.

When you come into the office, you will meet with an attorney who will perform a complete financial analysis. They will give you all of your options under both Chapter 7 and Chapter 13.

We have helped many individuals who are facing retirement and it seems that in the last few years, it is more common to see clients who are approaching the Golden Years. Times are tough, and often retirement plan are the first thing to be cut in a tough economy. It’s important to remember that you do have options. Retirement should be a time of enjoyment and peace, not a time of major financial stress.

The consultation is free. Call our office at (919) 845-7721. You will listen to a short information tape and then be transferred to a receptionist.

In a recent edition of Consumer Bankruptcy News, it was reported that 79 million Americans have medical debt and that 1 in 3 workers spend 10% of their income on health care.

Medical bills often create an overwhelming and stressful situation. One major medical problem can virtually wipe out a family’s financial security. In reality, medical bills are considered mere unsecured debt that can often be discharged in a straight bankruptcy or paid back for as little as $2.00 per day under a Chapter 13. Once you file for relief, all creditor interaction must stop, including the annoying phone calls, garnishments and lawsuits.

The Chapter 13 is often referred to as a Wage Earners Plan, but wages can often be in the form of other income.  In order to qualify, all sources of income must be considered.  Thsi would include social security, disability, unemployment, income from a friend, income from a boarder or renter, income from self-employment, child support and business income.