How Does Bankruptcy Work In NC?

The way bankruptcy works in NC is that you file either a Chapter 7, Chapter 11, or Chapter 13, and follow the rules provided by the bankruptcy code in order to obtain your Discharge in bankruptcy.

The Length Of Your Bankruptcy

Depending upon which chapter you choose, the length of your bankruptcy will differ. If you choose Chapter 7, you will have a 341 Meeting about 45 days after the filing of your bankruptcy. Your Charlotte bankruptcy attorney will attend the meeting with you, and you’ll answer questions from the trustee. Generally, creditors do not show up to this meeting.

About 60 days after your 341 meeting, provided there are no challenges to your bankruptcy, you will receive your Discharge. This means the court agrees that your bankruptcy filing is proper and your debts should be extinguished by way of your bankruptcy filing.

Sometime between the 341 meeting and the entry of your Discharge, your trustee will typically close your case as well. This means the trustee has reviewed the case and determined there are no assets to distribute to creditors. Once the trustee has closed your case, and the court has entered your Discharge, your Chapter 7 is complete.

Choosing Chapter 13 Bankruptcy

If you choose Chapter 13, the answer to the question “How does bankruptcy work in NC?” has a slightly different answer. Mainly, the difference is the length of your bankruptcy is much longer. However, there is good reason for this. Most people choose Chapter 13 to save a house or car if they are behind on payments. The Chapter 13 is typically 60 months long and allows you to get caught up on these payments while preventing your creditors from trying to take action against you. So long as you make your Chapter 13 payments, when you reach the final payment you will be caught up on the house and car, and you will also receive a Discharge for you unsecured debt (credit cards, medical bills, etc.).

Despite the length of a Chapter 13, provided you make your Chapter 13 payments on time, you should not have to attend court during your bankruptcy. If there is the need for a hearing, your attorney can often attend without you, which makes Chapter 13 quite convenient.

Choosing Chapter 11 Bankruptcy

A Chapter 11 bankruptcy is similar to a Chapter 13 bankruptcy; however, it is more suitable to corporations and small businesses that need to “reorganize” their debt. Whereas the trustee approves or recommends a Chapter 13 case for confirmation to move forward, your attorney must negotiate with each creditor in a Chapter 11. Despite this, the result is fairly similar—you enter into an agreement to pay back a percentage of your debt in exchange for protection of the bankruptcy court.

Speak With A Charlotte Bankruptcy Lawyer Today

If you are considering filing bankruptcy, it’s important that you speak with a Charlotte bankruptcy attorney. The call is free and you will come away with a much better understanding of your options. You can reach us at 704.749.7747 or click to request a FREE CASE EVALUATION, and we will be in touch shortly.

Further Reading

If this article was helpful, you may find other helpful articles on our Bankruptcy Blog. Thank you for visiting the website—we hope it has been helpful.