Tag Archive for: charlotte bankruptcy attorney

Can I Use My Credit Card To Pay For Bankruptcy?

Generally, speaking you cannot use your credit card to pay for bankruptcy. The reason behind this is if you use your credit cards too close to filing bankruptcy, there is a presumption of abuse that arises. This presumption of abuse means it is assumed that you incurred debt you knew would be forgiven or discharged by Chapter 7 bankruptcy. By using your credit card to pay for bankruptcy, then filing bankruptcy, it is hard to argue you did not plan to have the cost of bankruptcy discharged. Keep in mind, you cannot keep your credit cards when you file bankruptcy.

Incurring Debt Prior To Bankruptcy

Your lawyer can’t advise you to incur debt prior to filing bankruptcy. If your lawyer accepted a credit card payment for your bankruptcy, this would be the equivalent of advising you or assisting you in incurring debt prior to filing bankruptcy. This violates federal bankruptcy law and your lawyer would experience repercussions as a result. There are a few exceptions, like accepting a credit card payment from a relative for your bankruptcy; however, attorneys have to be very careful when accepting credit card payments in any situation.

Allowable Debt Prior To Filing Bankruptcy

This does not mean you can’t incur any debt prior to bankruptcy. An example would be the purchase of a car before filing for bankruptcy. If you take out a loan to buy a car just before the bankruptcy, this is allowable. First, a vehicle loan is a secured debt. This means that the lender is secured in the event you file bankruptcy—if you want the debt discharged you would have to give them the vehicle. However, in most cases, when you buy a car before filing bankruptcy, it’s to avoid trying to buy one after bankruptcy hits your credit score and credit report. In that case, after you file the bankruptcy, you simply file a reaffirmation agreement with your attorney’s help. This way, you file bankruptcy, keep the car, and keep the debt associated with the car. The loan terms do not change.

Cash Advances And Bankruptcy Filing Fees

You can potentially take out a cash advance on a credit card to pay your attorney. However, in our opinion, this still qualifies as using your credit card to pay for bankruptcy. Additionally, if you take out more than $925 in the 70 days prior to filing bankruptcy, for any reason, the credit card company can file a lawsuit demanding that those particular funds should not be discharged in bankruptcy.

How Can I Pay My Bankruptcy Fees

Stop Paying Credit Cards — Once you know you’re going to file bankruptcy; you can stop making payments on credit cards that will be discharged in bankruptcy. This may free up some immediate cash flow to pay for your bankruptcy.

Borrow Money From A Friend Or Family Member – It’s ok to borrow money from a friend or family member to file bankruptcy.

Ask About A Payment Plan With Your Attorney – Our firm allows payment plans for filing bankruptcy. Your final payment does need to be made prior to filing the bankruptcy. This allows you to make a small payment upfront to hire us and have us work on your case. Together we will spend as much time as needed preparing for the filing. When you’re ready with your final payment, we will also be ready to file the bankruptcy. This works great for most clients.

Talk To A Charlotte Bankruptcy Attorney Today

If you’re having trouble with finances and considering bankruptcy, give us a call. You can reach us at 704.749.7747. Or you can click for a FREE BANKRUPTCY CONSULTATION and we’ll call you shortly. A brief phone conversation can change your life and get things going in the right direction. We know you have options. We hope you choose to Recover With Us.

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Is Bankruptcy Right For Me?

If you’re asking yourself “Is bankruptcy right for me?” most likely, the answer is yes. We work every day with hard-working individuals who simply can’t keep up with growing medical debt, credit card debt, or mortgage problems. Bankruptcy offers a powerful solution that is life-changing.

When a potential client is wondering “Is bankruptcy right for me?” we encourage them to look more specifically at a few areas of their financial life, in hopes of helping them find an answer. Typically, our bankrupt clients have spent years trying to pay off credit card debt. Unfortunately, the interest rates, late fees, and penalties make it all but impossible. The banks will survive if you file bankruptcy. Our biggest concern is the health of you and your family.

How Expensive Is Bankruptcy

We are very much aware that when you’re having trouble making ends meet, the idea of paying a law firm for bankruptcy can be overwhelming. Fortunately, most clients find the fee for bankruptcy is reasonable. Additionally, once you know you’re going to file bankruptcy, you can stop making payments on debt that will be discharged in bankruptcy. This includes medical bills, credit card debt, and often tax debt. If you’d like to request a free quote for bankruptcy, click here: FREE BANKRUPTCY QUOTE.

How Immediate Is The Relief

The day you file your bankruptcy papers with the federal court, your creditors will be sent notice of the filing. This means they can no longer contact you in an attempt to collect a debt. It also means any legal actions including foreclosure and writs of execution, are automatically frozen by the Automatic Stay in bankruptcy. Your phone stops ringing, threatening letters stop arriving by mail, and peace is immediately restored to your life.

How Quickly Will I Recover

This is a question which certainly is on everyone’s mind. Bankruptcy clients are often surprised at how quickly they begin to recover from bankruptcy. While the bankruptcy will show on your credit for up to 10 years, you will begin to receive offers for vehicle financing, credit cards, and other extensions of credit, within one year of filing. Most clients report that their credit score one year after filing bankruptcy is better than it was on the day they filed bankruptcy. If you’re wondering “Is bankruptcy right for me?” these are great answers when it comes to credit scores!

Can I Buy A House If I File Bankruptcy

We love that clients think ahead about the dream of homeownership. For most clients considering bankruptcy, there’s no way to buy a house due to the amount of debt they have, and the fact their credit score has usually been lowered by aggressive banks reporting late and non-payments. There’s good news. Two years after you complete your bankruptcy, you’ll become eligible for some federal home lending programs. Four years after you complete your bankruptcy, you’ll become eligible for the same loan products everyone in the private market is eligible for. In the meantime, you’ll be able to save for a down payment because you won’t be sending money to credit card companies every month.

Speak With A Charlotte Bankruptcy Attorney

If you’d like more information about filing bankruptcy, speak with a Charlotte bankruptcy attorney today. You can call us at 704.749.7747 or click here for a FREE CONSULTATION. We know you have choices. We hope you choose to Recover With Us.

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Bonus In Bankruptcy – Can I Keep It?

Can I Keep My Bonus In Bankruptcy?

If you are paid a commission or bonus through your employer, a key question when filing bankruptcy is whether you can keep your bonus when you file a bankruptcy. If certain factors are met, the answer is yes, you can keep your bonus in bankruptcy. Our firm litigated a case in the Western District of North Carolina in 2017 which addressed that exact issue. You can find a link to the story about the case published here on Bloomberg Law.

Is My Bonus Part Of The Bankruptcy Estate?

Whether a bonus is part of the bankruptcy estate, and potentially at risk of being paid over to the Trustee, depends. If the bonus has already been received and is sitting in your account, then yes, it will need to be addressed as an asset of the estate. If the bonus is earned, but not yet received, the answer is the same. However, if a bonus is earned but the payment of the bonus and the amount of the bonus remain in the discretion of the employer, your bonus may not be an asset of the bankruptcy estate.

The Timing Of Your Bonus Is Important

The snapshot for determining the answer to numerous questions regarding your bonus is the day of filing. If on the day of filing, your employer still retains discretion as to whether to pay the bonus, then you have no vested rights in the bonus. For the purpose of bankruptcy, this is merely an expectation of a bonus. Case law supports the conclusion that a mere expectancy or hope of a bonus is not an asset. Therefore, the bonus would not be part of the bankruptcy estate. While your employer may in fact end up paying the bonus, if at the time of filing you had no legal right to it, then it should not be included in the bankruptcy estate.

What Would Change This Answer?

If prior to the day of filing, your employer communicated to you that you have earned a bonus and the bonus will in fact be paid at a later date, this would most likely dictate the bonus is an asset of the estate. If the bonus was small enough, you could use one of your bankruptcy exemptions to protect the bonus. Depending upon whether you could prove when the bonus was earned, you may also be able to protect some or all of the bonus under the earned income exemption.

How Is A Bonus Different From A Commission?

In this context, the imagined bonus is one that is at the employer’s discretion. A commission is typically calculated and generated upon a mathematical equation, and upon a certain event—conclusion of a sale, signing of a contract, etc. Presumably, the same questions would arise concerning a commission. If the commission was earned at the time of filing your bankruptcy, it would be an asset of the bankruptcy estate, whether you had been paid the commission yet or not.

Speak With A Charlotte Bankruptcy Attorney

If you are considering filing bankruptcy, speak with a Charlotte bankruptcy attorney today. You can call us at 704.749.7747 or click HERE to request a call. We know you have choices. We hope you choose to Recover With Us.

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Your Credit Score After Bankruptcy

If you call for a bankruptcy consultation, part of that phone call will be a discussion regarding your credit score after bankruptcy. There is plenty of good news regarding your credit score after bankruptcy. This article will help you distinguish between fact and myth.

Your Credit Score After Bankruptcy Will Not Be Ruined

Generally, your credit score a year after filing a Chapter 7 will recover to what it was just prior to filing the Chapter 7 bankruptcy. While there are exceptions, most clients who choose to file a Chapter 7 do not have a perfect credit score. By eliminating debt in the Chapter 7 filing, your debt to income ration improves and this helps your credit score recover after you’ve filed bankruptcy.

You Will Receive Offers For Credit Cards After Bankruptcy

Clients are surprised to find that they are offered credit cards shortly after filing bankruptcy. Certainly, most clients report that around the one year mark after filing, they receive credit card offers. While the interest rates may be high, this is true of most credit cards. If you pay off the balance each month, you are never charged interest. The reason banks offer you credit cards so soon after filing bankruptcy is that you are a good candidate for credit. You’ve discharged all of your unsecured debt through bankruptcy, and you’re more likely to pay on a new credit card. The creditors also know you can’t file bankruptcy again for a number of years.

If you want to improve your credit score after bankruptcy as quickly as possible, consider a secured credit card. A secured credit card is one where you give the bank or credit union a deposit. For instance, you may give the bank $300.00. In exchange, the credit union gives you a credit card with a limit of $300.00. Each month, if you spend some and pay the balance down to $0 again, the credit union will report this to the credit bureaus. This positive payment history serves to quickly build your credit score after bankruptcy. Quite often, after a history of on time payments, the credit union will extend your credit to a higher limit.

You Can Build Credit While A Bankruptcy Shows On Your Credit Report

A bankruptcy filing will show on your credit report for no more than ten years. This will not prevent you from building your credit score after bankruptcy. Your income to debt ratio will be improved, and if you immediately take advantage of secured credit cards, or make payments on vehicle and mortgage debt, your credit score after bankruptcy will build accordingly.

Speak With A Charlotte Bankruptcy Attorney Today

Making a phone call is the first step. We get excited when we speak with potential clients who are considering filing bankruptcy. Quite often I find myself telling clients that whether they file with our firm or another firm, they NEED to file bankruptcy. I believe this because after hearing their story, I believe they deserve the relief bankruptcy provides.

If you’d like to speak with a Charlotte bankruptcy attorney today, call us at 704.749.7747 or click HERE to request a call. It’s easy and it’s free. We know you have choices. We hope you choose to Recover With Us.

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Reaffirmation Agreements In Chapter 7

When you file your Chapter 7 Bankruptcy, you will have to declare on your Statement of Intention form, whether you plan to reaffirm certain debts. When you sign a Reaffirmation Agreement, you are simply recommitting to the debt associated with property. This property can be your vehicle or your home. Whether you should sign a Reaffirmation Agreement depends on the circumstances and the type of debt.

What Effect Does Bankruptcy Have On My Mortgage?

If you file Chapter 7 and receive a Discharge, you will effectively no longer be obligated to pay the debts which were discharged. This presents a dilemma when the debt is associated with property such as a home or vehicle. In those instances, the lender has the right to force you to either a) return the property associated with the debt, or b) sign a Reaffirmation agreement.

Because a mortgage debt is such a large debt, the Bankruptcy Courts have held that you actually have a third choice with regard to your home mortgage. That choice is that you can “Retain and Pay”. This means that you do not have to reaffirm your mortgage debt, and so long as you continue to make your mortgage payments, you can stay in the home.

What Are The Reasons To Not Sign A Reaffirmation Agreement?

First, if you or your spouse lose your job after bankruptcy, or if the economy and housing values decline, you’ll be protected. If you do not reaffirm, you can simply walk away from the home and you owe nothing to the lender. You simply turn over the keys. If you reaffirmed, then you would be responsible for the loan balance on the mortgage. If the lender sold the home in foreclosure and did not receive enough to pay off the mortgage, they could pursue you for the remainder. In the alternative, if the lender forgave the remaining debt, there is a chance you would receive a 1099 for forgiveness of debt. This would trigger a tax obligation for you.

Second, the terms of your mortgage will not change. The interest rate and underlying agreement with the bank will continue. Each time you make a payment, your balance will decrease. In other words, you will receive credit for all payments made.

What Are The Reasons To Sign A Reaffirmation Agreement?

Truthfully, the only real reason to reaffirm your mortgage debt is related to credit reporting. Most lenders will not report your mortgage payments to the credit bureaus unless you reaffirm the debt. One of the fastest ways to rebuild your credit is through making mortgage payments. There are alternatives, however. If you obtain a retail credit card or secured credit card, or if you’re making payments on vehicle loans, you will receive credit for those payments when the creditors report to the credit bureaus.

Speak With  A Charlotte Bankruptcy Attorney Today

If you’re considering filing Chapter 7 Bankruptcy, call us at 704.749.7747 to speak with a Charlotte Bankruptcy attorney today. Or you can click HERE to request a consultation. Most consultations are done by phone and they are free—you deserve to understand your options. We hope you’ll choose to Recover With Us.

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Paying For Your Bankruptcy

I’ve always found that paying for your bankruptcy makes an otherwise difficult financial time even more… difficult. Fortunately, if you’re able to put together the funds for bankruptcy, you will experience immediate financial relief upon filing, as your creditors are no longer allowed to attempt to collect on debts. We understand the difficulty associated with paying for your bankruptcy, and we try to be flexible in that regard. Call our office at 704.749.7747 for more details, or click HERE to request a fee quote.

Down Payments Toward Bankruptcy

Our firm will start working on your bankruptcy with you, prior to receiving any funds from you. If you are willing to do the work involved in preparing to file, we take that as a showing of good faith on your part and we work with you to get started. After the firm has reviewed your submitted information, we will schedule a call with you. Once we are comfortable you will be successful in your Chapter 7 filing, then we ask you to make a deposit toward the total fee.

Using Credit Cards To Pay For Bankruptcy

Unfortunately, you can not use a credit card to pay for bankruptcy. When you place a charge on a credit card which you have no intention of paying back, that debt will survive the bankruptcy. A bankruptcy fee would fall into that category.

When Will My Bankruptcy Be Filed

The Federal Bankruptcy Code requires that the final payment be received by the attorney prior to the actual filing of the bankruptcy. So, the remainder of your payment is due any time prior to filing. Once we receive the final payment from you, we are typically ready to file your case within a week. Upon filing, which is done electronically, your bankruptcy attorney automatically receives a bankruptcy case number. The court also immediately notifies your creditors of the filing.

Can Someone Else Pay For My Bankruptcy

Yes, someone else is permitted to pay for some or all of your bankruptcy. While many clients have already borrowed money from friends or family in order to try to keep up with mounting debts and gaps in income, our clients find those same friends and family members are interested in assisting with bankruptcy payments because it represents an end to a difficult situation for you.

Other Fees In Bankruptcy

For Chapter 7 bankruptcy, we charge a flat fee and we will explain to you the work included with that flat fee. In some rare circumstances, a Chapter 7 may require additional attorney work to defend against an aggressive creditor. Those situations are usually evident prior to filing and your Charlotte bankruptcy attorney will make sure you understand the risk of having to spend additional money on the bankruptcy. Typically, this is not the case.

Who Pays The Bankruptcy Court Filing Fees

In addition to the attorney fee, there are fees due to the court for filing a bankruptcy. Our firm includes those fees in our flat fee, and we pay the court fees directly, together with any 3rd party fees associated with your bankruptcy.

Taking Next Steps

Most clients tell us they feel better already after simply having a phone consultation with the attorney. If you’d like to take the next step toward financial freedom, simply call us at 704.749.7747 and speak with an attorney today. Or you can click HERE and request a call. Bankruptcy is a powerful resource which provides great relief and marks the start of your financial recovery. We hope you’ll choose to Recover With Us.

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Can I File Bankruptcy in Charlotte, North Carolina?

As a Charlotte bankruptcy attorney, that’s a question I get asked quite often. Charlotte, North Carolina has a divisional federal bankruptcy as part of the Western District of North Carolina. In order to file bankruptcy in the Charlotte, North Carolina division, you must meet the domicile requirements set forth by the federal bankruptcy rules.

Determining Domicile for Bankruptcy in Charlotte, North Carolina

If you have lived or maintained a permanent residence in Charlotte (or the surrounding counties) for the last 180 days prior to filing bankruptcy, then you’ll file your bankruptcy in Charlotte, North Carolina. You can also file bankruptcy in Charlotte, North Carolina if your personal place of business or your assets (house, etc) are located in or near Charlotte, North Carolina.

Determining Exemptions for Bankruptcy in Charlotte, North Carolina

Regardless of where you file, your attorney will still need to determine which exemptions you use to protect your property. There are federal bankruptcy exemptions, and each state also has its own set of exemptions. If you’ve continuously lived for 2 years in a state, you use that state’s exemptions or the federal exemptions, if that state allows federal exemptions as an option.

If you have not lived in the same state the last two years, you use the exemptions for the state you lived most of the 180 days prior to the 2 year mark from filing. For example, if you were going to file June of 2015 and had not lived in the same state the last 2 years, then you use exemptions for the state you lived in the greater of the 180 period from January 2013 to June 2013. Confused yet? Fortunately your bankruptcy attorney will figure all of this out and most state exemptions are nearly identical to one another.

If you have any questions about filing bankruptcy in Charlotte, North Carolina, please call 704.749.7747 to speak with an attorney today.

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