• When you file for bankruptcy, most people will never know about your filing unless you tell them. Bankruptcy filings are listed on what is referred to as the “Pacer” system. You must have an account and password to access that site. Filings are not generally published or printed in the media, unless you are famous.
• Several very famous people have filed for bankruptcy and have gone on to have successful careers after filing. Several of these people include:
• If your automobile has been repossessed and has not been sold at an auction, you can often times get the vehicle back by filing a Chapter 13.
• If you file for Chapter 13, you can stop the sale of your home that is set for foreclosure. In North Carolina, you even have 10 days after the actual sale date (called the “10 day upset bid period”) to file a Chapter 13 and the creditor must set aside the foreclosure sale.
• Some people have heard that it is much more difficult to file for bankruptcy after the laws changed in 2005. That statement is not true. For most people, the change in law has little impact on filing. When you come into the office, the attorney will explain how things changed with the addition of something called the “Means Test”. The Means Test analyzes your income and expenses over the previous 6 months. For most individuals, unless your income is well above the median income, you may still qualify for bankruptcy. If you do not qualify for Chapter 7, Chapter 13 is often a great alternative.
• Your right to file for bankruptcy is guaranteed by the Constitution of the United States under Article 1, Section 8. It was designed to help good people get out of a bad situation. It’s a powerful law that has been around for a long time.
• There is biblical support for filing for bankruptcy. The previous 7 year interval that was allowed between Chapter 7’s was originally based on Deuteronomy 15:1-2, which states that “At the end of every seven year period, you shall have a relaxation of debts, which shall be observed as follows: Every creditors shall relax his claim on what he has loaned his neighbor”. Leviticus 25 discusses a complete discharge of debt in fiftieth year jubilee and Ezekiel 18:13 condemns the charging of interest.
• You are not alone. The top five reasons why consumers file for bankruptcy include:
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