Filing for bankruptcy does not magically erase all of your debts, but it does offer you a way to find your way out and gain a fresh start.
When you look into which form of bankruptcy you wish to file, gather as much documentation as possible to help determine your eligibility and structure any repayment plans.
Financial documents and proof of income
Your ability to pay back what you owe determines which form of bankruptcy you qualify for. You must pass a means test involving your income, family size and expenses to qualify for Chapter 7 bankruptcy. Pay stubs, tax returns, documentation of wage garnishments, disability payments and unemployment checks are all relevant in determining your eligibility.
List of debts
Regardless of which form of bankruptcy you file, you will need to provide a detailed list of everything you owe, including documentation. Chapter 7 may dismiss some unsecured debts like medical bills or credit card bills. Chapter 13 involves paying back your debts according to a payment plan structured by the court. Each form of bankruptcy requires a list of who you owe and how much you owe each creditor.
List of assets
Chapter 7 bankruptcy is also known as liquidation bankruptcy. It involves a trustee selling your nonexempt property to pay what you owe. The trustee will need a detailed list of your assets, including real property appraisals.
Filing for bankruptcy in North Carolina begins by filing a petition in bankruptcy court. Individuals, couples and business entities may file for bankruptcy in this manner.