Chapter 7

Many debtors facing foreclosure in North Carolina turn to bankruptcy as an option. One of the main reasons debtors facing foreclosure file for bankruptcy protection is to take advantage of the automatic stay, which prohibits most collection attempts, including a...

On January 30, 2014, in the In re Stancil case from the Raleigh Division of the Eastern District of North Carolina, Judge Stephani Humrickhouse issued an opinion on a dismissal based on 707(a) of the Bankruptcy Code. A dismissal under...

Having a judgment entered against you can be a stressful situation, especially when the Sheriff’s deputy shows up with a Writ of Execution. People often wonder if their wages can be garnished here in North Carolina by a judgment creditor. ...

We are commonly asked whether debts may be excluded from a bankruptcy filing. Below are several common examples: 1. A secured debt where the debtor wants to keep the collateral 2. A credit card that the debtor needs for: a. emergencies b. travel...

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) is considered to be one of the most radical bankruptcy reform laws. Among the sweeping changes ushered in by BAPCPA included a requirement for individual debtors seeking Chapter 7...

Eddie Montgomery, half of the country music duo Montgomery Gentry, filed for Chapter 7 bankruptcy relief on Tuesday, December 31, 2013 in Lexington, Kentucky. Montgomery claimed $13.4 million in liabilities and listed assets totaling $1.9 million. Best known for his...

Health Savings Accounts (HSA) were signed into law in December 2003 and became effective January 1, 2004. A HSA is a private, tax-deferred savings account that allows individuals to pay for both current and future medical expenses with tax-free money....

Many chapter 7 debtors are unaware that Homeowner’s Association (HOA) dues occurring post-petition are not dischargeable in bankruptcy. According to Section 523(a)(16) of the Bankruptcy Code any “fee or assessment that becomes due and payable after the order for relief...

Not all debt is created equal. We know this subjectively (who would you prefer to pay back, your mom or your credit card company?), and we know this objectively by reading the Bankruptcy code. Mortgage payments, car loans, tax debt,...

Here is a common set of facts: A potential client comes into our office. During the conversation we learn that the potential client owns assets that would be vulnerable to liquidation by a trustee in a chapter 7 case. Maybe the asset is $10,000 in a...