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Bankruptcy

Bankruptcy is a court-supervised legal process that helps people who can no longer pay their debts get a fresh start by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect financially troubled businesses.

In North Carolina, bankruptcy is governed by federal law, specifically the U.S. Bankruptcy Code, which allows individuals and businesses facing insurmountable debt to seek relief through different types of bankruptcy chapters, most commonly Chapter 7 and Chapter 13 for individuals, and Chapter 11 for businesses. Chapter 7 bankruptcy involves the liquidation of assets to pay off debts, while Chapter 13 allows individuals with a regular income to create a repayment plan to pay back creditors over time. Chapter 11 serves a similar function for businesses, providing a way to reorganize and continue operations while repaying creditors. The process is overseen by a bankruptcy court and a court-appointed trustee. North Carolina has specific exemptions that protect certain assets from being sold in a Chapter 7 bankruptcy, and these exemptions are outlined in the state's statutes. It's important to consult with an attorney to understand how North Carolina's exemptions may apply to an individual's situation and to navigate the complexities of the bankruptcy process.

Legal Articles

State Statutes

adversary proceeding assumption of contracts, leases automatic stays

Chapter 11 bankruptcy Chapter 12 bankruptcy Chapter 13 bankruptcy Chapter 13 bankruptcy — confirmation hearing Chapter 13 bankruptcy — disposable income Chapter 13 bankruptcy — eligibility Chapter 13 bankruptcy — repayment plan Chapter 7 bankruptcy Chapter 7 bankruptcy — changing trustee Chapter 7 bankruptcy — conversion to chapter 11, 12, or 13 Chapter 7 bankruptcy — discharge Chapter 7 bankruptcy — eligibility Chapter 7 bankruptcy — means test Chapter 7 bankruptcy — no assets cosignors courts creditor claims — secured, unsecured, priority

debtor in possession

estate exemptions

hardship discharges homestead exemption

involuntary bankruptcy

liquidation

nondischargeable debt nondischargeable debt — alimony nondischargeable debt — child support nondischargeable debt — fraud nondischargeable debt — student loans

petition preferential transfer priority debt proof of claim

reaffirmation of debt reorganization plan

section 341 meeting of creditors statement of financial affairs

trustee

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Articles

Understanding the Different Personal Bankruptcy Chapters

At some point in life, many of us will face financial hardships. When debt becomes overwhelming, one potential avenue of relief is filing for personal bankruptcy.

Understanding Personal Bankruptcy: Types, Eligibility, and Consequences

If you're considering filing for personal bankruptcy, it's crucial to understand the different types available, their implications, and the advantages and drawbacks of each.

North-Carolina State Code