{"id":12650,"date":"2023-08-29T09:00:00","date_gmt":"2023-08-29T13:00:00","guid":{"rendered":"https:\/\/www.duncanlawonline.com\/staging\/8350\/?p=12650"},"modified":"2023-04-09T10:46:59","modified_gmt":"2023-04-09T14:46:59","slug":"behind-on-debts-for-bankruptcy","status":"publish","type":"post","link":"https:\/\/www.duncanlawonline.com\/staging\/8350\/behind-on-debts-for-bankruptcy\/","title":{"rendered":"Do You Have to Be Behind on Your Debts to File Bankruptcy?"},"content":{"rendered":"

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[av_heading heading=’Do You Have to Be Behind on Your Debts to File Bankruptcy?’ tag=’h1′ link_apply=” link=’manually,http:\/\/’ link_target=” style=” size=” subheading_active=” subheading_size=’15’ margin=” margin_sync=’true’ padding=’10’ color=” custom_font=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” av_uid=’av-lg9i7gza’ custom_class=” admin_preview_bg=”][\/av_heading]<\/p>\n

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\n\"indian-american-male-smiling\"When filing for bankruptcy, there’s a common misconception that you must be behind on your debts to qualify. As a\u00a0<\/span>consumer bankruptcy in North Carolina<\/span><\/a>\u00a0with decades of experience, let me set the record straight: you don’t necessarily have to be behind on your debts to file bankruptcy.\u00a0<\/span><\/p>\n

So let’s dive into the details.<\/span>
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[av_heading heading=’Types of Personal Bankruptcy’ tag=’h3′ link_apply=” link=’manually,http:\/\/’ link_target=” style=” size=” subheading_active=” subheading_size=’15’ margin=” margin_sync=’true’ padding=’10’ color=” custom_font=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” av_uid=’av-lg9i9o3i’ custom_class=” admin_preview_bg=”][\/av_heading]<\/p>\n

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\nThere are two primary types of personal bankruptcy:<\/span><\/p>\n

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  1. Chapter 7 bankruptcy<\/span><\/strong><\/a>: Known as “liquidation” bankruptcy, it discharges most of your unsecured debts. You may be required to sell some of your non-exempt assets to pay off creditors.<\/span><\/li>\n
  2. Chapter 13 bankruptcy<\/span><\/strong><\/a>: This type of bankruptcy involves creating a repayment plan that lasts 3 to 5 years. You keep your assets but commit to repaying some of your debts over time.<\/span><\/li>\n<\/ol>\n

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    [av_heading heading=’Understanding Insolvency’ tag=’h3′ link_apply=” link=’manually,http:\/\/’ link_target=” style=” size=” subheading_active=” subheading_size=’15’ margin=” margin_sync=’true’ padding=’10’ color=” custom_font=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” av_uid=’av-lg9iab0v’ custom_class=” admin_preview_bg=”][\/av_heading]<\/p>\n

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    \nThe key concept to grasp is “insolvency.” Being insolvent means you can’t meet your financial obligations as they come due, or your total debts exceed the value of your assets. Insolvency doesn’t necessarily mean you’re behind on your debts. Instead, it’s about your ability to repay them.
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    [av_heading heading=’Factors to Consider Before Filing Bankruptcy’ tag=’h3′ link_apply=” link=’manually,http:\/\/’ link_target=” style=” size=” subheading_active=” subheading_size=’15’ margin=” margin_sync=’true’ padding=’10’ color=” custom_font=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” av_uid=’av-lg9ib8yn’ custom_class=” admin_preview_bg=”][\/av_heading]<\/p>\n

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    \nFiling for bankruptcy when you’re not behind on your debts can be a double-edged sword. Here are a few factors to consider:<\/span><\/p>\n