With the new bankruptcy laws in 2005, Congress passed legislation requiring a person filing bankruptcy to take a credit counseling course within the 180-day period preceding the date the bankruptcy case is filed with the court. A certificate of completion must be filed with your bankruptcy. Most of the approved credit counseling companies provide the course online and the fees vary by company. However, it is important that you take your credit counseling course from an approved credit counseling company.
00Damon Duncanhttps://www.duncanlawonline.com/wp-content/uploads/2015/01/duncanlawlogo.pngDamon Duncan2010-06-26 15:19:472015-04-11 23:04:18What is Credit Counseling?
Typically speaking, no you will not have to go to bankruptcy court. However, you will have to attend what is called a creditors’ or 341 meeting. This is not the same thing as bankruptcy court. One of the key differences is that in bankruptcy court you will actually appear in front of a bankruptcy judge. In a creditors’ meeting you will only appear in front of the Trustee. The Trustee is the person who represents your creditors, the people you owe money to.
With that said, at times there will be situations where it is necessary to go to court. I would estimate that 98/100 times you will not have to go to bankruptcy court. If you do have to attend bankruptcy court, don’t stress out about it. Your attorney should make sure you are well prepared and it usually only lasts for a few minutes. If there are other questions that we can answer for you don’t hesitate to contact our bankruptcy law firm.
00Damon Duncanhttps://www.duncanlawonline.com/wp-content/uploads/2015/01/duncanlawlogo.pngDamon Duncan2010-03-12 05:14:152010-03-12 05:14:15Will I Have to Go to Court for Bankruptcy?
If you are considering filing bankruptcy, you are probably aware of the Bankruptcy Court requirement that you complete a credit counseling course prior to filing your bankruptcy, and that you complete a financial management course prior to receiving your discharge from your bankruptcy.
When the bankruptcy laws changed in 2005, one of the major changes was the new requirement of the credit counseling and financial management courses. One reason for these new requirements was so that debtors will be better informed and educated regarding their financial situation, budgeting, and obtaining credit.
While it is fairly easy to obtain the necessary credit counseling and financial management certificates, you must be aware of certain requirements and limitations.
First, your credit counseling and financial management certificates must be obtained through a Bankruptcy Court approved credit counseling agency. In other words, you cannot just find any credit counseling agency and obtain a certificate. You need to check with your attorney and/or local Bankruptcy Court to find out which credit counseling agencies are approved.
Second, there are time limitations for obtaining the necessary certificates. Your credit counseling course certificate must be obtained within 180 days prior to your bankruptcy filing. In other words, if you take the credit counseling course on January 1 and receive a certificate but do not file your bankruptcy petition with the Court until August 1, you will need to re-take the course and obtain a new certificate prior to the filing of your bankruptcy petition.
Your financial management course certificate must be obtained and filed with the Court prior to the entry of the discharge of your debts. This date is usually four to six months after you file your bankruptcy petition. As a good rule of thumb, you should take your financial management and file the certificate with the Court anytime between 10 days after the filing of your bankruptcy and prior to your first Creditors’ Meeting. By sticking with this time frame, you will avoid any potential discharge issues related to your financial management course.
Although the credit counseling and financial management course requirements may seem as though it is just one more hoop to jump through with your bankruptcy filing, most people find that the courses are actually helpful in planning for the future after your bankruptcy filing, so that you can receive a true fresh financial start.
00Damon Duncanhttps://www.duncanlawonline.com/wp-content/uploads/2015/01/duncanlawlogo.pngDamon Duncan2010-03-07 22:44:552010-03-07 22:44:55Why Do I Have to Take a Credit Counseling Course?
The good news is, most property can be protected in bankruptcy proceedings. North Carolina, like most states, allows you to protect most real and personal property by using “exemptions.”
00Damon Duncanhttps://www.duncanlawonline.com/wp-content/uploads/2015/01/duncanlawlogo.pngDamon Duncan2010-03-07 22:41:372017-07-18 15:37:51What Happens to Property That Cannot Be Protected in Bankruptcy?
When we have a consultation with a prospective client we do everything we can to explore every option that the client may have. Then, the client decides which direction they would like to head. One of the frequent questions we get is what happens if instead of filing a Chapter 7 bankruptcy or a Chapter 13 bankruptcy they just give up the house and walk away. The answer to that question really depends upon whether or not you have any equity in your house. Equity is the difference between the value of the house and how much you owe.
Substantial Equity: If you have substantial equity in your house then you may be okay just walking away. Typically what happens is the bank will foreclose on the home after you walk away and sell. According to a MSN Money article, John T. Reed, the Editor of Real Estate Investor’s Monthly, a foreclosed home will sale about 5% below the market average but may be up to 30% or 40% below market value.
If the mortgage company is able to recover the full amount that you owe on the property then you are not likely to owe any more money for the foreclosed home. However, you will still have a foreclosure that appears on your credit report.
Little to No Equity: If you have little to no equity in your home and the bank is unable to recover the amount you owe then you will be responsible for the unpaid balance which is called the deficiency balance. In other words, if your foreclosed house sold for $100,000 but you owe $150,000 on the house, then you would still owe the bank $50,000. It is unlikely that you will have $50,000 to pay out of pocket so the bank has the ability to file a lawsuit against you and obtain a judgment. That judgment could eventually lead to a lien on your different types of property. Liens are bad news – you don’t want one!
Typically speaking, foreclosed properties will not recover the full amount owed to the bank for the mortgage. Therefore, they will look to you to pay the deficiency balance. A bankruptcy has the ability to potentially wipe out this entire balance.
The bottom line: if you still owe money for the mortgage even after the foreclosure sale of your home then you will be liable for those costs. Bankruptcy can usually wipe out that left over balance. If you do nothing they will file suit against you and have a judgment that may attach to your property. Ideally, you don’t want a foreclose to appear on your credit. Bankruptcy gives you the ability to keep the foreclosure off your credit and wipe out the deficiency balance.
00Damon Duncanhttps://www.duncanlawonline.com/wp-content/uploads/2015/01/duncanlawlogo.pngDamon Duncan2010-03-06 02:12:002010-03-06 02:12:00What If I Walk Away From My Home and Don't File Bankruptcy?
https://www.duncanlawonline.com/wp-content/uploads/2015/01/duncanlawlogo.png00Damon Duncanhttps://www.duncanlawonline.com/wp-content/uploads/2015/01/duncanlawlogo.pngDamon Duncan2010-02-28 03:53:562020-03-24 16:33:10What is the Means Test in a Bankruptcy?
https://www.duncanlawonline.com/wp-content/uploads/2015/01/duncanlawlogo.png00Damon Duncanhttps://www.duncanlawonline.com/wp-content/uploads/2015/01/duncanlawlogo.pngDamon Duncan2010-02-28 03:33:062018-02-13 08:40:23What Does It Mean to Convert From a Chapter 13 to Chapter 7 Bankruptcy?
One of the biggest fears people have in filing bankruptcy is being able to protect their property. Here is the good news – we can almost always protect all of your property. You are entitled to keep a generous amount of your belongings when filing bankruptcy. North Carolina law now provides higher personal exemptions–items that are protected from seizure by your creditors.
https://www.duncanlawonline.com/wp-content/uploads/2015/01/duncanlawlogo.png00Damon Duncanhttps://www.duncanlawonline.com/wp-content/uploads/2015/01/duncanlawlogo.pngDamon Duncan2010-01-30 20:25:002018-11-27 10:02:14Is My Property Protected in Bankruptcy?
https://www.duncanlawonline.com/wp-content/uploads/2015/01/duncanlawlogo.png00Damon Duncanhttps://www.duncanlawonline.com/wp-content/uploads/2015/01/duncanlawlogo.pngDamon Duncan2010-01-22 14:00:002021-07-12 21:56:10How Does a Bankruptcy Affect a Judgment Against Me?
It depends. Normally, you must have resided in North Carolina for the greater part of 180 days before you can file a Chapter 7 bankruptcy or Chapter 13 bankruptcy in North Carolina. Under 28 U.S.C Section 1408 of the Bankruptcy Code a person or entity filing a bankruptcy must have resided at least 180 days in the judicial district, or the greater part of the 180 days (91 days) if they were residing in another judicial district.
Are you confused yet?
Generally speaking, you must have resided at least 91 days in the judicial district, such as the Western District (Charlotte area) or Middle District (Greensboro area) of North Carolina before you can file a bankruptcy in this state.
To eliminate this problem, you would normally wait until you had met the residency requirements before you file the bankruptcy. However if you just moved a few days ago to North Carolina from California or another state and you have to file a bankruptcy due to an emergency, you would probably have to file the bankruptcy in the previous state you lived in.
Some judicial districts may allow a resident of one state to file in another state. For example, if you live in Ft. Mill, South Carolina, which is just a mile or two across the North Carolina state line, and you work and shop in North Carolina on a daily basis and have other “connections” to North Carolina, you could probably file the bankruptcy in Charlotte, North Carolina. This is valid only if a creditor does not object to the residency requirements. However, you could not live in Texas and decide to file bankruptcy in North Carolina because you believe the North Carolina laws would be advantageous to you. You would have to file the bankruptcy in Texas.
Also remember even though you may meet the residency requirements to file in North Carolina, you must use the exemptions of the state where you resided two years before you file the bankruptcy. 11 USC 522(b)(3)(A). For example, if you just moved to North Carolina one year ago from Rhode Island you would meet the residency requirements to file in North Carolina, however you would have to use the Rhode Island exemptions to protect your property. (Note: Some states require you use the federal exemptions).
We hope this has helped you to understand the residency requirements to file bankruptcy in North Carolina.
https://www.duncanlawonline.com/wp-content/uploads/2015/01/duncanlawlogo.png00Damon Duncanhttps://www.duncanlawonline.com/wp-content/uploads/2015/01/duncanlawlogo.pngDamon Duncan2010-01-15 14:00:002010-01-15 14:00:00Do I Have to Live in North Carolina to File Bankruptcy Here?
