We understand that many clients may be facing or working through a recent life event including: 

• Job Loss 
• Substantial Change in Income 
• Medical Expenses 
• Divorce or Separation 
• Business Debts 
• Loss of a Loved One or Family Member 

Any one of these life events may cause unexpected changes and financial concerns. Many of our clients  have encountered a combination of these life events. We want you to know that you are not alone. It is  important that we understand your current and future financial situation.  

Alternative options may include Debt Settlement (negotiation) or Debt Consolidation (new loan). We  encourage you to consider the pros and cons of each option. We want you to make an informed decision regarding which option may be best suited to your current and future financial situation.

Debt Settlement involves negotiating with a creditor to accept less than what is owed. It is voluntary and  cannot be forced on your creditors but they may be willing to accept a reduced amount today rather than  collect money over time. Debt Settlement typically requires that you pay a lump sum immediately. This  may be difficult if you are already behind on your bills or there are multiple accounts. There may be tax  consequences as the forgiven debt is considered taxable income. Non-negotiable tax law requires that the  creditor issue a 1099-C for the cancelled or settled portion of the debt. We are willing to discuss the Debt  Settlement option but want to ensure it is your best available option.

Debt Consolidation involves borrowing money to pay off existing debts, typically at lower interest rates.  This option often requires that you are approved for a new loan and may be VERY difficult if you are  already behind on your bills. Past due or charged off accounts may have already NEGATIVELY impacted your Credit Report (history) and Credit Score (reputation as a borrower). We strongly encourage you to  review any new loan terms. We do not want you to be persuaded into a high interest loan or high  monthly payment that may cause you to fall behind on bills such as your rent, mortgage, or car loan. 

The fundamental goal of Bankruptcy is to give you a “fresh start”. Your right to file Bankruptcy is  provided by federal law and all proceedings will be conducted through the federal Bankruptcy Court. Bankruptcy provides additional protections not available with either Debt Settlement or Debt  Consolidation. After your case is filed, most creditors are prohibited from taking further collection  action. Federal and state laws will be applied to help you claim property as “exempt”. The completion of  your case and discharge will help you obtain a “fresh start”.

Chapter 7 involves a liquidation of non-exempt property. The court appoints a Trustee to review your  case. You will be allowed to claim certain property as “exempt”. Due to these exemptions most Chapter 7  cases are classified as “no asset” cases and no actual sale or liquidation occurs. We recommend that you  remain current on your mortgage and car payment unless you are planning to surrender these items. If  you are behind on your mortgage or car payment we may recommend a different case. Most Chapter 7  clients receive a “discharge” within 4 to 6 months. The discharge will help you resolve debts such as  credit cards, personal loans, medical bills, and collection accounts. Exceptions may apply to debts such as  recent income taxes, student loans, and domestic support obligations including child support or alimony. 

Chapter 13 involves a court-approved repayment plan which lasts 36 to 60 months (i.e., 3 to 5 years). This option may be preferred as it allows you to get caught-up on certain debts such as your mortgage or  car payment, repay priority debts such as recent income taxes, and possibly modify certain loans. Each  Chapter 13 plan is unique. We will work to ensure your monthly plan payment amount is as affordable  as possible. The monthly plan payment amount will depend on factors such as your income, property,  and claims filed by creditors. Your plan will be subject to the review of the Judge, Trustee, and creditors. You will receive a discharge after the completion of your repayment plan. 

Our goal is to help you obtain a discharge as quickly and efficiently as possible. There may be times  when we will recommend Chapter 13 instead of Chapter 7 including: 

• You are not eligible for Chapter 7 based on recent income.
• There may be a risk your property could be liquidated and sold in Chapter 7.  
• You are behind on mortgage or car payments and need a chance to catch-up via the Plan.
• You may be eligible to modify a secured debt such as your car loan or mobile home.

Chapter 11 is primarily used by businesses to reorganize. Individuals may consider this option if not  eligible for Chapter 13 (i.e., debts exceed statutory limits). Chapter 11 requires substantial court  oversight. You must provide tax records, bank records, and report monthly income and expenses  throughout the process. The business or individual who files Chapter 11 will be responsible for preparing  the reorganization plan and obtaining court approval. Your plan will be circulated amongst all creditors  who can vote to accept or deny. Approval will be determined by the Judge who may approve your plan  over the objection of creditors. Each reorganization plan is unique. It is important that we understand  your current and future financial situation to ensure that the plan is tailored to your needs. 

We will provide you with a list of documents we must review BEFORE your case is filed including: • Driver’s License 

• Social Security Card or W2 containing your full SSN 
• Your last two filed Federal and State Tax Returns with any W2 or 1099 issued to you. • Paystubs and Household Income records from the previous Six Months 
• Bank Statements from the previous Six Months 
• Recent Retirement Account statement to verify the type of account and exempt balance. • Vehicle Registration to verify the Make, Model, and VIN. 
• Vehicle Insurance to verify your current coverage. 
• Homeowners Insurance to verify your current coverage. 
• Life Insurance policy information. 
• Medical Bills which may no longer be listed on your Credit Report. 

Married couples can file as individuals or in a joint case. If you file your case as an individual we will need  your spouse’s income information to verify case eligibility.

You must complete Credit Counseling course with a court approved non-profit BEFORE and AFTER  your case is filed. Each course takes approximately one hour and can be completed online. We will  provide you with a list of approved providers.

Once your case is filed, creditors are prohibited from continuing or taking certain collection actions.  This “automatic stay” will stop collection phone calls, lawsuits, foreclosure, and repossession. You may  be entitled to sanctions and attorney fees if a creditor violates the automatic stay. 

Each individual that files for Bankruptcy must attend a Meeting of Creditors via Zoom shortly after the  case is filed. The court appointed Trustee will ask questions related to your case. We will attend the  meeting with you. Additional court hearings may be necessary and are often held in Wilmington,  Raleigh, New Bern, Greenville, and Fayetteville. 

Once your case is filed, you typically need to obtain court approval to buy or sell property. Specific rules  may apply and please discuss any concerns with our office before beginning any transactions.

The discharge typically occurs at the completion of your case and releases you from liability for certain  debts. Exceptions may apply to debts such as recent income taxes, student loans, and domestic support  obligations including child support or alimony. You may be entitled to sanctions and attorney fees if a  creditor violates the discharge injunction.