North Carolina Bankruptcy Law

Bankruptcy relief is based upon Federal Law, although North Carolina law also comes into play. Most importantly are North Carolina Bankruptcy Exemptions that determine what property you may keep. One of many bankruptcy myths is the bankruptcy trustee will take your house or car. That rarely happens!

Another important state law issue is the North Carolina median income numbers representing the starting point of the bankruptcy means test analysis. The bankruptcy means test is used to determine whether an individual qualifies for Chapter 7 vs. Chapter 13 bankruptcy. If you happen to make more than the median income numbers do not assume you fail the means test and can’t file Chapter 7. There are many deductions that help you qualify such as a mortgage, car payment, childcare, charity giving, health insurance, support giving to older parents, and taxes. Also- if the majority of your debts are “business debts” Congress has decided the means test requirement will be waived.

At Witt Law, P.A. a Charlotte lawyer will meet with you for a free bankruptcy consultation including means test analysis. Another benefit we provide is an eye towards bankruptcy avoidance via debt settlement. The last thing a collection agency or collection department wants to hear is a call from a bankruptcy attorney saying they must either compromise or risk getting zero in bankruptcy.