FAQ

What is bankruptcy?

Depending on what chapter is filed, bankruptcy allows a debtor to discharge some or all of their debt. The two chapters that usually apply to consumers are Chapter 7, where most or all of your debt is wiped out, and Chapter 13, which involves a repayment plan.

What is Chapter 7 bankruptcy

In a Chapter 7 bankruptcy, commonly referred to as liquidation, a debtor can discharge qualifying debt after the nonexempt assets are liquidated. Contact your Chapter 7 bankruptcy attorney in Charlotte, NC today to discuss your options.

What is Chapter 13 bankruptcy

In a Chapter 13 bankruptcy, commonly referred to as debt reorganization or repayment, the debtor will pay back some of their debt over the course of three to five years through the bankruptcy court. Chapter 13 bankruptcy can be used to stop foreclosures, repossessions, and wage garnishments. Contact your Chapter 13 bankruptcy attorney in Charlotte, NC today to discuss your options

What debts can bankruptcy discharge?

Unsecured debt such as credit card bills, medical bills, and personal debt can be discharged through bankruptcy. Any accounts you fail to list in your bankruptcy paperwork will not be discharged. To be eligible for discharge, the creditor must have been provided notice of the bankruptcy. Your unique circumstances will determine whether all of your qualifying debt will be discharged or if you need to repay a portion of the debt.

Will I lose my house or car if I file Chapter 7 bankruptcy?

When you file for bankruptcy, you are allowed to keep certain amounts of equity in certain types of property. In most cases, the equity in your house or car can be protected. As your Charlotte bankruptcy attorney, we will examine your assets and determine whether a Chapter 7 is best for you.

How can filing for bankruptcy help with creditors?

A creditor may attempt to contact you during your bankruptcy while the automatic stay is in place. However, they should not be calling, emailing, or otherwise harassing you. If a creditor knowingly contacts you to collect on a debt while you are in bankruptcy, thereby violating the automatic stay, the creditor may be liable for any harm caused. A Charlotte bankruptcy lawyer can help deal with creditors during the bankruptcy process.

Creditors cannot seek to collect on debts that are discharged in bankruptcy.

If you do not qualify for Chapter 7, a Chapter 13 bankruptcy petition will assist with paying the debt over a longer period of time than most creditors allow through informal agreements.

Can I keep any of my current or old credit cards once I have filed?

Bankruptcy law requires you to list all of your debt on your bankruptcy petition. So, if you owe a creditor money, the creditor must appear on your petition. Most credit card agreements have a term, which says that if you file for bankruptcy, then they can close the account. If you file bankruptcy, sometimes the account is canceled automatically, and sometimes it is not. This depends on the credit card company's policies and procedures.

Do I have to file for bankruptcy if I am in debt?

No. Depending on your personal circumstances, bankruptcy may not be the best option for you. If you have financial hardship, many creditors will negotiate reduced settlements. Galletta Law Firm focuses on the legal needs of consumers and families in Charlotte and the greater Mecklenburg County area. Our goal is to provide both effective representation, tailored to the client's specific needs and budget. As a consumer debt defense and bankruptcy attorney, we have experience negotiating with major credit companies and lenders. Contact us today to see how we can assist.