Bankruptcy itself isn't the inability to pay your debts – it's a solution to help you recover from that situation. Bankruptcy isn't something you should be afraid of. In fact, if you're terribly deep in debt and struggling with bills you can't pay, it's something for you to embrace to get you out of an unfortunate circumstance. Done with the right timing and with good advice from a reputable North Carolina bankruptcy attorney, it can be the best thing for you if you're hopelessly in debt.
If you're deep in debt and file Chapter 7, here's what will change in your life:
#1 Your past due medical bills will all be gone. No more collections calls and letters.
#2 Your credit card bills and balances will be wiped out. No more stress over there.
#3 If you have lost a car or home to foreclosure, any lingering bills or balances will be gone.
#4 If you owe past due utility balances or closed accounts, those will be wiped clean.
#5 If you owe back taxes but filed your returns on time, these may be eliminated as well.
#6 If you are being garnished, this can stop and you may be able to get some refunded.
If you're deep in debt and file Chapter 13, here's what will change in your life:
#1 Past due balances on your mortgage can be paid out over time to let you catch up.
#2 Second mortgages can be wiped out if there is not enough equity to support them.
#3 If you owe more on your car loan than it's worth, the loan balance and interest rate can be reduced.
#4 If you have a past due balance on your car loan, you'll get time to catch up.
#5 If you're being garnished for student loans or taxes, these can be cut back while you are in repayment.
#6 At the end of your repayment plan, remaining balances on credit cards and medical bills can be wiped out.