Category: Chapter 7 Bankruptcy
Will bankruptcy help with private student loans?
If you are struggling with private student loan debt, you are not alone. Many people in North Carolina took out private loans to pay for school and now feel stuck. The payments are high. The interest keeps growing. And you may be wondering if bankruptcy can give you any relief. This article explains how bankruptcy … Read more
What Happens If I Get An Inheritance In A Chapter 7 Bankruptcy?
Finding out you may inherit money or property should feel like good news. But if you recently filed Chapter 7 bankruptcy, you might be worried. Could the bankruptcy trustee take your inheritance? Do you have to report it? What if you already got your discharge? These are fair questions. The rules around inheritances and Chapter … Read more
Can I Sign A Reaffirmation Agreement On My Mortgage?
If your mortgage company is pushing you to sign a reaffirmation agreement, you are not alone. Many homeowners in North Carolina get these papers after they file for bankruptcy. The lender's representative may even call and say you "have to" sign. That can feel scary and confusing. Here is the good news. In most cases, … Read more
How is the Household Size Determined for the Means Test?
The basic purpose of the Means Test is to determine whether a Debtor is eligible to file Chapter 7 bankruptcy. Along with other supporting requirements, the Means Test plays a major role in Chapter 7 bankruptcy. The Means Test also tells us whether a Debtor would need to pay back some of their debts in a Chapter 13 bankruptcy if they do not “pass.” Simply put, the Means Test determines the Debtor’s monthly income by taking the Debtor’s household’s gross income and subtracting qualified deductions. By doing this, we can decide whether the Debtor would need to be looking into filing a Chapter 7 bankruptcy or Chapter 13 bankruptcy.
What is the Difference Between Gross Income and Net Income?
There is a saying that always helps me remember the difference between gross and net income: it’s gross to see how much you would be bringing home before taxes. Gross income is what you make before taxes and what you claim as income on your tax returns. Net income is what you actual bring home … Read more
Can You Wipe Out A Small Business Administration (SBA) Loan in Bankruptcy?
The short answer is, yes, a Small Business Administration (SBA) loan is considered a dischargeable debt. New entrepreneurs or small business owners who are looking to revamp their business sometimes need an additional guarantor on a loan, due to certain factors, such as not having enough collateral. A guarantor takes responsibility for the debt and … Read more
Why Does the Means Test Look at My Gross Income Instead of Net Income?
If you are thinking about filing bankruptcy, you have probably heard about the "means test." And if you have started looking at it, you may feel confused or even a little angry. Here is what bothers most people. The means test starts with your gross income, not your take-home pay. That can feel unfair. After … Read more
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