“You Could Lose Protection: When you file for bankruptcy, you get something called an "automatic stay." This stops creditors from trying to collect money from you. If you miss payments, you could lose this protection.
Your Case Might Get Dismissed: In the worst case, the court could throw out your bankruptcy case. This means you'd lose all the benefits of filing for bankruptcy.
Creditors Can Start Collecting Again: If your case gets dismissed, your creditors can start asking for money again. They might even try to take your stuff or garnish your wages.”
“Deciding to surrender your car during Chapter 7 bankruptcy is not a decision to be taken lightly. It is essential to weigh the benefits and drawbacks carefully while considering your overall financial situation. Understanding what surrendering your vehicle entails, including the long-term implications for your credit and future transportation needs, is vital for making an informed decision.”
“In North Carolina, individuals filing for Chapter 7 bankruptcy can protect up to $35,000 of equity in their primary residence. This is due to the state's homestead exemption rule, which does not allow for the choice between state and federal exemptions, unlike some other states.”
“Bankruptcy can provide relief for individuals and businesses facing insurmountable debt. It is a legal process that allows borrowers to eliminate or repay their debts under the protection of the bankruptcy court. However, it's important to note that bankruptcy does not automatically eliminate administrative liens on your home. The impact of bankruptcy on administrative liens depends on the type of bankruptcy you file.”
“One of the major concerns with relying solely on Social Security is the uncertainty surrounding its future. The program faces financial challenges due to an aging population and a decrease in the number of workers supporting the system. While the government has taken steps to address these issues, such as raising the retirement age and increasing payroll taxes, there is still a level of uncertainty regarding the long-term sustainability of Social Security. Depending solely on this program for retirement income may expose individuals to the risk of reduced benefits or potential changes to the program.”
“In Chapter 7 bankruptcy, which is also known as liquidation bankruptcy, your non-exempt assets are sold to repay your creditors. If you've made substantial profits as a day trader after filing for Chapter 7 bankruptcy, those profits may be considered part of your bankruptcy estate. This means that the bankruptcy trustee has the authority to collect and distribute those profits to your creditors.”
“In some states, such as Texas and Florida, there are unlimited homestead exemptions that allow debtors to protect all of the equity in their homes, regardless of the value. Other states, such as North Carolina and Wyoming, have more limited homestead exemptions that may only protect a certain amount of equity.”
“Lien stripping is only available in Chapter 13 bankruptcy and is only possible if the value of your home is less than the amount you owe on your first mortgage. In other words, if your home is worth less than what you owe on your primary mortgage, then the second mortgage or home equity loan may be considered unsecured debt, which can be treated similarly to credit card or medical debts.”
