Bankruptcy Lawyers in Charlotte, NC Area See 6% Increase in Filings

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Charlotte NC SkylineThe decline in the national economy is reflected by an increase in personal bankruptcy filings in 2010. However, in North Carolina, bankruptcy filings increased in some parts of the state while they decreased in other areas of the state.

In 2010, national filings were up 9% from 2009. In 2010, there were 1,530,078 consumer bankruptcy filings, an increase from the 1,407,788 consumer filings in 2009.

At the local level across North Carolina, the number of bankruptcy filings in 2010 varied.

In the Western District of North Carolina, there were 8,450 new bankruptcy filings in 2010, up from the 8,238 filings in 2009 – an increase of approximately 2.5%. The Western District of North Carolina includes Asheville, Bryson City, Charlotte, Shelby, and Wilkesboro (and areas in between).

Specifically within the Western District of North Carolina, bankruptcy cases filed in Charlotte, NC were up approximately 5.7% in 2010, with 3,839 cases filed. In 2009, there were 3,631 new bankruptcy cases filed in the Charlotte division. These numbers reflect the ongoing financial difficulties that families are facing in the Charlotte area. Many of these bankruptcy filings were a direct result of a job loss or pay cut.

Within the Middle District of North Carolina, which includes Winston-Salem, Greensboro, and Durham (and areas in between), bankruptcy filings decreased 4.9% in 2010.

Why the difference in two sections of the state so geographically close? It is likely because of the varying job availability and varying housing markets. The housing markets are different from county to county. While people in the Charlotte area may be choosing to file Chapter 13 bankruptcy to stay in their homes and avoid foreclosure, the trend in Greensboro may be to not try to save the home and to instead surrender the home and later file bankruptcy. However, folks in the Greensboro area who are simply walking away from their homes will eventually be harassed and possibly sued by the mortgage company for any remaining balance due on the home. At this point, those individuals will need to file bankruptcy to eliminate their responsibility on the debt.

If you are in the Charlotte area and are considering bankruptcy, contact Duncan Law for a free, no strings attached consultation to learn more.

What Happens When I Surrender My Property in Bankruptcy?

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How to Write a Cease and Desist Letter

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If you are currently suffering from some type of creditor harassment or dispute and you believe that if the matter went in front of a judge that you would win the dispute, writing a cease and desist letter may be a good option for you.

A cease and desist letter is a letter that may be written by anyone – not just a lawyer – in an attempt to stop some sort of harmful activity (usually harassment or a dispute by a bill collector). Cease and desist letters are usually used when the matter is not serious enough to spend money taking the other party to court. Although cease and desist letters are usually written by lawyers, they are not required to be and can certainly be written by an individual who is not a lawyer.

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Usually, a cease and desist letter threatens further legal action if the harmful harassment or dispute does not end immediately. For example, if debt collectors are constantly harassing you, you can write a cease and desist letter. The information you include in your letter should be:

The name and address of the person you are contacting

The name and address of the party who is harassing you or against whom you have a dispute

A description of the harmful actions that the other party has taken against you (harassing phone calls, harassing letters, etc. – be as specific as possible, including dates, times, people’s names, etc.)

A specific demand that the actions stop immediately

A statement that if the actions do not stop immediately, further legal action will be taken (you can be as specific here as you would like – lawsuit filed in a certain court, certain damages will be sought, etc.)

It is also a good idea to send the letter via certified mail, return receipt requested, so that someone will have to sign off on receipt of the letter. That way, the other party cannot argue that they never received your letter. If you send the letter via regular mail, the other party may argue that they never received your letter or that it was lost in the mail.

Although some people do hire attorneys to write a cease and desist letter on their behalf, it can definitely be done by an individual who is not an attorney – just be sure to include all necessary information and be stern in your demands. Here is an example of a Sample Cease and Desist Letter.

Can I Pay My Family or Friends Back Before I File Bankruptcy?

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Well, you can, but it’s probably not the best idea.  Family members and friends for the fact of the matter are considered “inside” creditors, as labeled in the bankruptcy code 11 U.S.C § 101 (31)(A)(i).   Because this is a loan from your family or friend and was never recorded, they are not looked at the same way as a regular creditor such as a credit card or a mortgage.

Daughter and Mother

You are required to list any payments that you have made that are over $600 in your petition.  But the court is going to look into where your payments went.  Did you pay your mother back $800 and not any other creditors?  If that is the case, the court could look at it as if you were playing “favorites” (meaning, you were choosing to pay her over another creditor) and the Trustee would have the right to go back to your mother and demand that she turn the funds that she took from you and give them to the bankruptcy Trustee for them to distribute to your creditors.  Meaning that you and her both would lose out on the money.

As in any case, each case is different and if this pertains to your situation you will need to discuss it with your bankruptcy attorney, so that he or she may properly advise you.

What if Creditors Keep Calling After I’ve Filed Bankruptcy?

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When you file bankruptcy, an “automatic stay” goes into effect against all of your creditors. The automatic stay, Section 362(a) of the U.S. Bankruptcy Code, among other things, prohibits creditors from contacting you to collect a pre-petition debt. In short, no more harassing phone calls from your creditors! This is one of many advantages the law offers to individuals who file Chapter 7 bankruptcy or Chapter 13 bankruptcy.
Smartphone IconAll of the creditors listed in your bankruptcy will receive notice within 5 business days when your bankruptcy petition is filed. This notice is sent to every creditor, both electronically and by mail. Generally, most creditors will stop all collection attempts immediately after they receive notice of the bankruptcy.

Should you receive phone calls from any of your creditors after you’ve filed bankruptcy be sure and let the creditor know you filed bankruptcy and provide them with your case number, the filing date and the name and phone number of your attorney. It is important that you document all of the phone calls you receive from the creditor by writing down the date and time you receive the calls and the name of the person you talked to. If a creditor continues calling you after you’ve informed them of your bankruptcy filing, they are in violation of the automatic stay and you should contact your attorney to let them know. Most likely your attorney will call the creditor and give them a courtesy warning to stop making contact with the debtor. At that point, if the creditor continues with their collection efforts by calling or sending you bills, your attorney may choose to file sanctions against the creditor for violating the automatic stay.

Will My Payments Change in a Chapter 13 Bankruptcy If I Lose My Job?

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