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Business and Personal Bankruptcy

Practicing Attorneys:

The decision to file for bankruptcy is often one of the hardest choices that a person has to make in their lifetime. Poor planning can often make the process even harder. It goes without saying that filing for bankruptcy should be a last resort, and should only be done when all other methods of satisfying one's financial obligations have been exhausted. However, if your situation has become so severe that you are in danger of foreclosure, garnished wages or repossessions, or are facing debts that you are in no position to pay, putting off the inevitable can have devastating consequences. Procrastination can cost you your car, your wages, and even your home. Filing your case in a timely fashion can spare you these losses.

  • If you are close to foreclosure on your home, declaring bankruptcy may stop this going forward and even create a payment structure that will help you pay off your arrears.
  • Bankruptcy may cause your car or other property to be given back to you if they have been repossessed by a creditor.
  • Large medical bills combined with a loss of employment, or on their own can create a nearly impossible financial hole to climb out of. Bankruptcy can help you in this situation and possibly reduce or even wipe away your medical bills.
  • Bankruptcy can stop harassing creditors from turning up on your doorstep, especially if they are being unfairly pushy or unreasonable or are fraudulently trying to take more than you owe.
  • If your utilities have been shut off, bankruptcy will help restore these so you do not have to live in darkness.
  • Although your student loans will not disappear, bankruptcy may help you to consolidate those debts and pay them off in a reasonable timeframe.
  • Bankruptcy will end wage garnishment, which means you will be able to afford life’s necessities.   
You may have more than one of these issues overlapping in your life and bankruptcy may be the best and most logical way to start your financial life over.
 
The Bankruptcy Abuse and Consumer Protection Act of 2005 went into effect on October 17, 2005 and provides the most significant (and controversial) overhaul of the bankruptcy system in over 25 years. Backed by the credit card, retail and banking industries, the new legislation makes it more difficult for people to erase all of their debts in bankruptcy, while forcing others on payment plans instead. Conservatives and the financial services lobbies argue that the new law was needed to curb abuse of the bankruptcy system and teach people to be more financially responsible, while liberals and consumer advocates say that this law unfairly penalizes poor people who may be suffering financially due to illness, divorce or unemployment.
 
If you are considering filing for bankruptcy, there are some important things about this law that you will need to know before you start your proceedings. Here is a summary of some of the BAPCPA’s most significant provisions.

Mullen Holland & Cooper P.A. focuses on the needs of businesses and their owners and employees in Gastonia and Gaston County as well as Western North Carolina and Upstate South Carolina, including Charlotte, Lincolnton, Shelby, Rutherfordton, Forest City, Newton, Hickory, Boone, Asheville, York, Gaffney, and Spartanburg.



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| Phone: 704-864-6751

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