If you’re considering filing bankruptcy in Raleigh, 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 Raleigh, North Carolina, or anywhere else in the United States, is determined by federal bankruptcy laws. These laws set forth eligibility criteria that individuals and businesses must meet to file for bankruptcy protection. While I can provide you with general guidelines, it’s important to consult with a qualified bankruptcy attorney in Raleigh to fully understand your specific situation and ensure compliance with the latest legal requirements.

In Raleigh, as in the rest of the United States, the primary types of bankruptcy that individuals typically file for are Chapter 7 and Chapter 13. Here’s an overview of the qualifications and eligibility criteria for each:

Chapter 7 Bankruptcy Eligibility:

Chapter 7 bankruptcy is often referred to as “liquidation bankruptcy” because it involves the sale of non-exempt assets to pay off creditors. To qualify for Chapter 7 bankruptcy in Raleigh, you must meet the following criteria:

1. Means Test: You must pass the means test, which compares your income to the median income for a household of your size in North Carolina. If your income is below the median, you may qualify. If your income exceeds the median, you may still be eligible based on a more detailed analysis of your expenses and ability to repay your debts.
2. Credit Counseling: You must complete a credit counseling course from an approved agency within 180 days before filing for Chapter 7 bankruptcy.
3. No Prior Discharge: If you’ve received a Chapter 7 discharge within the past eight years, you may not be eligible for another Chapter 7 discharge. There are exceptions in cases of extreme hardship.
4. No Fraudulent Activity: You must not have engaged in any fraudulent activity or attempted to hide assets from creditors.
5. Fulfillment of Filing Requirements: You must meet all filing requirements, including submitting necessary documentation, schedules, and forms accurately and on time.

Chapter 13 Bankruptcy Eligibility:

Chapter 13 bankruptcy is a reorganization bankruptcy that allows individuals to develop a repayment plan to pay off their debts over a period of three to five years. To qualify for Chapter 13 bankruptcy in Raleigh, you must meet these criteria:

1. Regular Income: You must have a regular source of income that enables you to make monthly payments under the proposed repayment plan.
2. Debt Limitations: Your unsecured debts have limits which are subject to adjustment over time due to inflation.
3. Fulfillment of Filing Requirements: As with Chapter 7, you must meet all filing requirements and submit accurate documentation.

It’s important to note that both Chapter 7 and Chapter 13 bankruptcies have their own advantages and disadvantages, and the choice of which to pursue depends on your specific financial situation and goals. Additionally, bankruptcy law is complex and subject to change, so it’s highly advisable to seek legal counsel from a qualified Raleigh bankruptcy attorney who can guide you through the process and help you make informed decisions.

Moreover, there are other types of bankruptcy available for businesses and individuals with unique circumstances, such as Chapter 11 for businesses and Chapter 12 for family farmers and fishermen. These types of bankruptcy have their own eligibility requirements and complexities, further emphasizing the importance of consulting an experienced bankruptcy attorney.

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

Filing for bankruptcy in Raleigh, North Carolina, is a complex legal process, and while it is possible to file without an attorney, it is highly advisable to seek legal representation for several important reasons.

1. Legal Expertise:

Bankruptcy law is intricate and constantly evolving. An experienced bankruptcy attorney in Raleigh is well-versed in the intricacies of the bankruptcy code, court procedures, and local rules. They can navigate the legal system on your behalf, ensuring that you comply with all requirements and deadlines. This expertise helps you avoid costly mistakes and maximizes the chances of a successful bankruptcy outcome.

2. Asset Protection:

One of the primary concerns when filing for bankruptcy is asset protection. Depending on the type of bankruptcy (Chapter 7 or Chapter 13) and your specific circumstances, certain assets may be exempt from liquidation or protected by the bankruptcy code. An attorney can help you identify and utilize these exemptions to safeguard your property.

3. Accurate Documentation:

Bankruptcy requires the submission of numerous forms, schedules, and financial disclosures. These documents must be completed accurately and truthfully. An attorney can assist you in preparing and filing these documents, reducing the risk of errors that could lead to complications, including the dismissal of your case or allegations of fraud.

4. Negotiating with Creditors:

Bankruptcy attorneys are skilled negotiators who can work with your creditors to achieve favorable terms within the bankruptcy process. In Chapter 13 bankruptcy, for instance, an attorney can help negotiate a manageable repayment plan that aligns with your income and financial situation.

5. Protection from Harassment:

Once you file for bankruptcy, an automatic stay goes into effect, which prohibits creditors from pursuing collection efforts, such as phone calls, letters, or lawsuits. An attorney can ensure that your creditors comply with this stay and take legal action if they violate it.

6. Court Representation:

If your case requires court appearances, your attorney can represent you before the bankruptcy court. This is particularly important in situations where disputes or objections arise during the bankruptcy proceedings. Your attorney can present your case effectively, increasing the likelihood of a favorable resolution.

7. Post-Bankruptcy Planning:

Bankruptcy doesn’t end when your case is discharged. It has long-term financial implications, and an attorney can provide guidance on rebuilding your credit, managing your finances, and making sound financial decisions after bankruptcy.

8. Specialized Knowledge:

Bankruptcy law has various nuances that may affect your case, such as the means test for Chapter 7 eligibility or the calculation of a feasible Chapter 13 repayment plan. An attorney is equipped to handle these intricacies and tailor a strategy that suits your unique circumstances.

9. Peace of Mind:

Filing for bankruptcy can be emotionally and financially stressful. Having an attorney by your side can provide peace of mind, knowing that you have a knowledgeable advocate working to protect your interests and guide you through the process.

10. Avoiding Pitfalls:

Without legal counsel, you may inadvertently make mistakes that could result in your bankruptcy case being dismissed or even facing legal consequences. An attorney can help you steer clear of common pitfalls and obstacles.

While it is technically possible to file for bankruptcy in Raleigh, NC, without an attorney, it is a risky endeavor. The complexities of bankruptcy law, the potential consequences of mistakes, and the importance of protecting your assets and interests make hiring an experienced bankruptcy attorney a wise investment. An attorney will help you navigate the process, advocate on your behalf, and increase your chances of achieving a successful bankruptcy outcome while minimizing stress and uncertainty.

Cost to File Chapter 7 Bankruptcy in Raleigh, NC

The cost to file for Chapter 7 bankruptcy in Raleigh, North Carolina, involves several fees and expenses, including court filing fees, mandatory credit counseling fees, and attorney fees if you choose to hire a bankruptcy attorney.

1. Court Filing Fee:The filing fee for a Chapter 7 bankruptcy in Raleigh, NC, is $410. This fee is paid to the bankruptcy court when you submit your bankruptcy petition. However, please note that court filing fees can change, so it’s crucial to verify the current fee with the local bankruptcy court or their official website.
2. Credit Counseling Fees: Before filing for bankruptcy, you are required to complete credit counseling from an approved agency. The exact fee may vary depending on the agency you choose. The fee may be waived or reduced if you can demonstrate financial hardship.
3. Attorney Fees: While you are not legally required to hire an attorney to file for Chapter 7 bankruptcy, it is highly recommended for the reasons mentioned in a previous response. Attorney fees can vary widely depending on the complexity of your case, your location, and the attorney’s experience. In Raleigh, NC, you can expect attorney fees for a Chapter 7 bankruptcy to range from $1,200 to $2,950 or more. Some attorneys offer payment plans to make their services more affordable.
4. Other Costs: In addition to the above expenses, you may incur additional costs for things like obtaining credit reports, notary fees, and any costs associated with securing necessary documents for your bankruptcy filing.

When considering the cost of filing for Chapter 7 bankruptcy, it’s essential to weigh these expenses against the potential benefits. Chapter 7 bankruptcy can provide a fresh start by discharging most unsecured debts, such as credit card debt and medical bills. While the upfront costs may seem significant, they can be a worthwhile investment in your financial future.

Cost to File Chapter 11 Bankruptcy in Raleigh, NC

Filing for Chapter 11 bankruptcy in Raleigh, North Carolina, is a complex and costly process, primarily designed for businesses, although individuals with substantial debts may also file under this chapter. The costs associated with Chapter 11 bankruptcy can be substantial due to its complexity and the ongoing nature of the proceedings. Here’s a breakdown of the major costs involved:

1. Attorney Fees: Legal representation is almost always necessary when filing for Chapter 11 bankruptcy due to its intricacies and the need for specialized knowledge. Attorney fees can vary widely depending on the complexity of your case and the attorney’s experience. For Chapter 11 cases, attorney fees can range from tens of thousands to hundreds of thousands of dollars. The complexity of your financial situation, the size of your business, and the scope of your restructuring plan all affect the final cost.
2. Filing Fees: The filing fee for a Chapter 11 bankruptcy is paid to the bankruptcy court when you submit your Chapter 11 petition. However, court fees can change, so it’s essential to check the current fee with the local bankruptcy court or their official website.
3. U.S. Trustee Fees: In addition to the filing fee, the U.S. Trustee’s Office assesses quarterly fees based on the company’s disbursements. These fees can range from several thousand to tens of thousands of dollars depending on the company’s financial activity during the bankruptcy.
4. Professional Fees: In many Chapter 11 cases, professionals such as financial advisors, accountants, and appraisers may be needed to assist with the restructuring process. Their fees can vary widely depending on the scope of their services and the complexity of the case.
5. Plan Confirmation Costs: As you work to confirm your Chapter 11 reorganization plan, there may be additional legal and administrative costs associated with soliciting creditor votes, addressing objections, and gaining court approval.
6. Administrative Expenses: These expenses include ongoing costs related to running the business during bankruptcy, such as rent, utilities, and employee wages.
7. Credit Counseling Fees: If you are an individual filing for Chapter 11 bankruptcy, you will be required to complete credit counseling before filing.

It’s important to note that Chapter 11 bankruptcy is a complex and lengthy process that can take years to complete. The costs can be significant, and it’s crucial to carefully consider whether the potential benefits of reorganizing and restructuring your debts outweigh the expenses.

Cost to File Chapter 13 Bankruptcy in Raleigh, NC

Filing for Chapter 13 bankruptcy in Raleigh, North Carolina, involves several costs and fees. Chapter 13 is often called a “wage earner’s plan” because it allows individuals with regular income to create a repayment plan to reorganize and pay off their debts over a period of three to five years. Here’s a breakdown of the major costs associated with filing for Chapter 13 bankruptcy:

1. Court Filing Fee: The filing fee for a Chapter 13 bankruptcy in Raleigh, NC, is $380. This fee is paid to the bankruptcy court when you submit your Chapter 13 petition. It’s important to note that court filing fees can change over time, so it’s advisable to verify the current fee with the local bankruptcy court or their official website.
2. Attorney Fees: While it is possible to file for Chapter 13 bankruptcy without an attorney, it is highly recommended to hire one due to the complexities of the process. Attorney fees for Chapter 13 cases can vary widely depending on the complexity of your financial situation, the location, and the attorney’s experience. In Raleigh, NC, attorney fees for a Chapter 13 bankruptcy typically range from $3,800 to $4,700 or more. Some attorneys offer payment plans to make their services more affordable.
3. Credit Counseling Fees: Before filing for Chapter 13 bankruptcy, you are required to complete credit counseling from an approved agency. The cost of this counseling is usually around $28 to $60, but it can vary depending on the agency. Fee waivers or reductions may be available based on your financial circumstances.
4. Trustee’s Fees: In Chapter 13 bankruptcy, a bankruptcy trustee is appointed to oversee your case and administer your repayment plan. The trustee’s fees are typically included in your monthly plan payments. These fees are used to cover the trustee’s administrative costs and compensation.
5. Other Costs: There may be additional expenses related to obtaining credit reports, notary fees, and any costs associated with securing necessary documents for your bankruptcy filing.
6. Plan Payments: In a Chapter 13 bankruptcy, you will be required to make regular plan payments over the course of your repayment plan. The amount of these payments will depend on your income, expenses, and the total amount of debt you are repaying.

Before filing for Chapter 13 bankruptcy in Raleigh, NC, it’s advisable to consult with an experienced bankruptcy attorney. They can provide you with a personalized assessment of your financial situation, help you understand the costs involved, and guide you through the entire process to ensure the best possible outcome for your case. An attorney can also help you explore options for fee waivers or payment plans if you are facing financial hardship.

Reliable Bankruptcy Attorneys in Raleigh, NC

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

Law Offices of John T. Orcutt
6616 Six Forks Rd #203, Raleigh, NC 27615, United States

Berggren Law Offices, PLLC
4000 Blue Ridge Rd #150, Raleigh, NC 27612, United States

Weik Bankruptcy Attorney
812 Salem Woods Dr # 102, Raleigh, NC 27615, United States

Janvier Law Firm, PLLC
311 E Edenton St, Raleigh, NC 27601, United States

J.M. Cook, P.A.
5886 Faringdon Pl #100, Raleigh, NC 27609, United States

Raleigh, NC Zip Codes We Proudly Serve:

27511, 27518, 27529, 27545, 27560, 27587, 27591, 27601, 27603, 27604, 27605, 27606, 27607, 27608, 27609, 27610, 27612, 27613, 27614, 27615, 27616

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