If you’re considering filing bankruptcy in Cary, NC, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

Qualifying for bankruptcy in Cary, North Carolina, like in any other location in the United States, is governed by federal bankruptcy laws, primarily under Chapter 7 and Chapter 13 of the Bankruptcy Code. However, there are specific requirements and considerations for individuals seeking bankruptcy relief.

1. Chapter 7 Bankruptcy: Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” is designed for individuals who are unable to repay their debts and want to discharge most of their unsecured debts, such as credit card bills and medical bills. To qualify for Chapter 7 bankruptcy in Cary, NC, you must meet the following criteria:
   • Means Test: The means test is a crucial element in Chapter 7 eligibility. It evaluates your income and expenses to determine if you have enough disposable income to repay your debts. If your income is below the median income for your household size in North Carolina, you generally qualify. However, if your income exceeds the median, further calculations are necessary to determine eligibility.
   • Credit Counseling: Before filing for Chapter 7 bankruptcy, you must complete a credit counseling course from an approved agency. This certificate of completion is required to initiate the bankruptcy process.
   • Previous Bankruptcy Discharge: If you’ve received a Chapter 7 bankruptcy discharge within the past eight years, you may not be eligible for another Chapter 7 discharge.
   • Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) Considerations: The BAPCPA introduced additional requirements, including income documentation and credit counseling, to prevent abuse of the bankruptcy system.
2. Chapter 13 Bankruptcy: Chapter 13 bankruptcy, often called a “reorganization” or “wage earner’s plan,” allows individuals with a regular income to develop a plan to repay their debts over a period of three to five years. To qualify for Chapter 13 bankruptcy in Cary, NC, you must meet these criteria:
   • Regular Income: You must have a regular source of income to propose a repayment plan. This plan should demonstrate your ability to make monthly payments to creditors over the specified period.
   • Debt Limits: There are debt limits for filing under Chapter 13. These limits are subject to change due to inflation.
   • Credit Counseling: As with Chapter 7, you must complete a credit counseling course before filing for Chapter 13 bankruptcy.
   • Priority Debts: Your Chapter 13 repayment plan must provide for the payment of certain priority debts, such as taxes and child support.
   • Plan Feasibility: Your proposed repayment plan must be feasible and reasonable, meaning it can realistically be executed based on your income and expenses.

It’s important to note that bankruptcy laws and regulations are subject to change, and local rules and court procedures may also apply. Therefore, it’s crucial to consult with an experienced bankruptcy attorney in Cary, NC, to assess your specific situation and determine your eligibility for either Chapter 7 or Chapter 13 bankruptcy.

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Do You Need a Lawyer to File For Bankruptcy in Cary, NC?

Filing for bankruptcy in Cary, North Carolina, is legally possible without an attorney, but whether or not you should do so depends on various factors. While it is not mandatory to hire a lawyer for bankruptcy, it is highly recommended for several reasons:

1. Complex Legal Process: Bankruptcy is a complex legal process with many rules and regulations. Filing the necessary paperwork correctly, meeting deadlines, and adhering to court procedures can be challenging for individuals without legal expertise. Mistakes in your bankruptcy petition can lead to delays, dismissals, or even legal consequences.

2. Legal Guidance: An experienced bankruptcy attorney can provide valuable legal guidance tailored to your specific situation. They can help you understand the available options, whether it’s Chapter 7 or Chapter 13 bankruptcy, and advise you on the best course of action based on your financial circumstances.

3. Assessment of Alternatives: A lawyer can help you assess alternatives to bankruptcy, such as debt negotiation or consolidation, which may be more appropriate for your situation. They can explain the pros and cons of each option and guide you toward the most suitable choice.

4. Protection of Assets: Bankruptcy law provides exemptions that protect certain assets from being liquidated to pay off your debts. An attorney can help you maximize the use of these exemptions to protect your property and assets during the bankruptcy process.

5. Debt Discharge: Attorneys know how to present your financial situation in a way that maximizes your chances of receiving a debt discharge (elimination). They can help you navigate potential challenges, such as creditors objecting to your discharge.

6. Negotiation with Creditors: A skilled attorney can negotiate with creditors on your behalf, potentially leading to more favorable terms for repayment. This can be particularly useful in Chapter 13 bankruptcy, where a repayment plan is established.

7. Handling Creditors and Collection Agencies: Once you file for bankruptcy, creditors and collection agencies are legally required to stop contacting you. An attorney can communicate with them on your behalf, relieving you of the stress and harassment often associated with debt collection.

8. Avoiding Pitfalls: Bankruptcy comes with various potential pitfalls and traps for the unwary. An attorney can help you avoid common mistakes that might jeopardize your case, such as incurring new debt or making preferential payments to certain creditors.

9. Court Representation: If any disputes or issues arise during your bankruptcy case, having an attorney to represent you in court is invaluable. They can advocate for your interests and ensure that your rights are protected.

10. Peace of Mind: Dealing with financial distress and the prospect of bankruptcy can be emotionally challenging. Having an attorney by your side can provide peace of mind, knowing that you have a legal professional guiding you through the process.

While hiring an attorney is advisable in most bankruptcy cases, there are situations where individuals with simple financial situations and a good understanding of bankruptcy laws may choose to file pro se (without an attorney). However, even in these cases, it’s essential to thoroughly research the bankruptcy process, obtain the necessary forms, and carefully follow all court procedures and requirements.

Cost to File Chapter 7 Bankruptcy in Cary, NC

The cost to file Chapter 7 bankruptcy in Cary, North Carolina, consists of several fees and expenses. It’s essential to understand these costs to ensure a smooth bankruptcy process. Here’s a breakdown of the key expenses associated with filing Chapter 7 bankruptcy:

1. Filing Fee: The primary cost is the filing fee, which is paid to the bankruptcy court. It’s essential to verify the current fee with the local bankruptcy court, as these fees can change over time.
2. Credit Counseling and Financial Management Courses: Before filing for Chapter 7 bankruptcy, you are required to complete credit counseling and a financial management course from an approved agency. The cost of these courses can vary but is typically in the range of $58 to $118 for each course. Some agencies may offer fee waivers or reduced fees based on your income.
3. Attorney Fees: While not mandatory, it is highly recommended to hire an experienced bankruptcy attorney to guide you through the process. Attorney fees for Chapter 7 bankruptcy vary depending on the complexity of your case, the attorney’s experience, and your location. On average, you can expect to pay between $1,150 to $2,900 for attorney services. Attorneys often offer payment plans to make their services more affordable.
4. Credit Report Fees: It’s essential to obtain a copy of your credit report from all three major credit reporting agencies before filing for bankruptcy. You are entitled to one free credit report from each agency annually. Additional reports may cost around $15 to $28 each.
5. Miscellaneous Costs: There may be additional costs associated with your bankruptcy case, such as notary fees, postage, and photocopying expenses. These are usually relatively minor but should be considered.
6. Mandatory Debtor Education Course: After filing for Chapter 7 bankruptcy, you must complete a second financial management course, often referred to as the debtor education course. The cost of this course varies but is typically around $58 to $116.
7. Exemption Costs: Depending on your specific financial situation, you may need to spend some money on acquiring and appraising assets that are exempt from liquidation. This is done to maximize the protection of your property during bankruptcy.

It’s important to note that if you cannot afford to pay the filing fee and meet certain income criteria, you may be eligible for a fee waiver or installment plan. Be sure to discuss this with your attorney or inquire with the bankruptcy court.

Additionally, it’s crucial to consult with an experienced bankruptcy attorney in Cary, NC, to assess your situation comprehensively. An attorney can provide guidance on managing costs and ensuring that you fulfill all necessary requirements to successfully navigate the Chapter 7 bankruptcy process.

Cost to File Chapter 11 Bankruptcy in Cary, NC

Filing for Chapter 11 bankruptcy in Cary, North Carolina, can be a complex and costly process, primarily designed for businesses and individuals with substantial assets and debts. The cost of filing Chapter 11 bankruptcy can vary widely depending on the complexity of the case and the specific circumstances involved. Here’s a breakdown of the key expenses associated with filing Chapter 11 bankruptcy:

1. Filing Fee: The initial filing fee for Chapter 11 bankruptcy can be substantial. This fee is paid to the bankruptcy court and may change over time, so it’s essential to verify the current fee with the local bankruptcy court.
2. Attorney Fees: Chapter 11 bankruptcy cases are highly complex and typically require the expertise of an experienced bankruptcy attorney. Attorney fees for Chapter 11 cases can be significant due to the extensive legal work involved, such as drafting the reorganization plan and negotiating with creditors. The cost of legal representation in Chapter 11 cases can vary widely but may range from tens of thousands to hundreds of thousands of dollars, depending on the complexity of the case.
3. U.S. Trustee Fees: In addition to the filing fee, Chapter 11 debtors are required to pay quarterly fees to the U.S. Trustee’s office. These fees are based on the debtor’s disbursements and can vary depending on the size and complexity of the bankruptcy estate.
4. Court-Appointed Professionals: In some Chapter 11 cases, the court may appoint professionals such as a trustee, examiner, or attorney to represent the interests of creditors or the bankruptcy estate. The fees for these court-appointed professionals are typically paid from the bankruptcy estate, and their costs can add to the overall expense of the case.
5. Creditors’ Committee Expenses: If a creditors’ committee is formed in the Chapter 11 case, the debtor may be responsible for certain committee expenses, such as legal and accounting fees.
6. Accounting and Financial Advisory Fees: Chapter 11 cases often require extensive financial analysis and reporting. Debtors may need to hire accounting and financial advisory firms to assist in preparing financial statements, cash flow projections, and other required documents.
7. Filing and Administrative Costs: There are various administrative costs associated with running a Chapter 11 case, including postage, photocopying, and other miscellaneous expenses.

Given the substantial costs and complexities involved in Chapter 11 bankruptcy, it’s essential to consult with experienced bankruptcy attorneys and financial professionals who can assess your situation, provide guidance on cost management, and help you navigate the Chapter 11 process effectively. Additionally, it’s advisable to consult with local bankruptcy experts in Cary, NC, to understand any specific requirements or fees that may apply in your jurisdiction.

Cost to File Chapter 13 Bankruptcy in Cary, NC

Filing for Chapter 13 bankruptcy in Cary, North Carolina, involves various fees and costs, which are designed to cover administrative expenses and ensure the orderly resolution of your debts through a court-approved repayment plan. Here’s a breakdown of the key expenses associated with filing Chapter 13 bankruptcy:

1. Filing Fee: The filing fee for Chapter 13 bankruptcy in Cary, NC is $355. However, it’s crucial to verify the current filing fee with the local bankruptcy court, as fees can change over time.
2. Attorney Fees: While not mandatory, hiring an experienced bankruptcy attorney is highly recommended for a successful Chapter 13 case. Attorney fees can vary depending on your location, the complexity of your case, and the services provided. On average, you can expect to pay between $2,450 to $4,800 for attorney services in a typical Chapter 13 case. Attorneys often offer payment plans to make their services more affordable.
3. Credit Counseling and Financial Management Courses: Before filing for Chapter 13 bankruptcy, you are required to complete credit counseling and a financial management course from an approved agency. The cost of these courses typically ranges from $58 to $120 each. Some agencies may offer fee waivers or reduced fees based on your income.
4. Chapter 13 Trustee Fee: In a Chapter 13 case, a court-appointed trustee is responsible for administering your repayment plan and distributing payments to creditors. The trustee is entitled to a fee, usually a percentage of your monthly plan payments. This fee is built into your repayment plan and does not require a separate payment.
5. Bankruptcy Court Filing Fees: Depending on the local rules of the bankruptcy court in Cary, NC, there may be additional administrative fees or charges associated with the processing of your case. These fees can vary and should be discussed with your attorney.
6. Miscellaneous Costs: There may be other miscellaneous expenses related to your Chapter 13 case, such as notary fees, postage, photocopying, and mailing expenses. These are typically relatively minor but should be considered.
7. Plan Payments: Chapter 13 bankruptcy involves creating a court-approved repayment plan that lasts three to five years. You’ll be responsible for making regular monthly plan payments to the Chapter 13 trustee, who will distribute the funds to your creditors as per the plan. The total amount of your plan payments will depend on factors such as your income, expenses, and the amount of debt you owe.

It’s important to note that if you cannot afford to pay the filing fee upfront, you may request to pay it in installments or seek a fee waiver based on your income.

Consulting with an experienced bankruptcy attorney in Cary, NC, is highly recommended to understand the specific costs associated with your Chapter 13 case and to ensure that you meet all the requirements for a successful bankruptcy filing. An attorney can provide guidance on managing costs and help you develop a repayment plan that addresses your financial situation effectively.

Reliable Bankruptcy Attorneys in Cary, NC

Below is a list of reputable bankruptcy attorneys in Cary, NC. They can help you with both personal and business bankruptcy information.

Sasser Law Firm
2000 Regency Pkwy #230, Cary, NC 27518, United States

Bradford Law Offices
455 Swiftside Dr #106, Cary, NC 27518, United States

Law Office of Dennis Jay Sargent Jr, PLLC
2500 Regency Pkwy, Cary, NC 27518, United States

The Law Offices of James D. Burton, PLLC
1135 Kildaire Farm Rd # 200, Cary, NC 27511, United States

Cary, NC Zip Codes We Proudly Serve:

27502, 27511, 27513, 27518, 27519, 27523, 27539, 27560, 27606, 27607, 27617, 27713

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