Filing for bankruptcy is a major financial decision, and it’s normal to feel unsure or overwhelmed. Whether you’re facing credit card debt, medical bills, or wage garnishment, speaking with an experienced Asheville bankruptcy lawyer can help you understand your options and protect your future. Asking the right questions before filing ensures you’re prepared, confident, and supported throughout the process.
Below are the most important questions Asheville residents should ask before beginning a bankruptcy case.
1. Do I Qualify for Bankruptcy?
Your eligibility depends on your income, debt type, and financial situation. In most cases, individuals consider two types of bankruptcy:
Chapter 7 – “Liquidation”
- Designed for individuals with limited income
- Requires passing the Means Test
- Discharges most unsecured debts
Chapter 13 – “Reorganization”
- Ideal for those with steady income
- Allows repayment over 3–5 years
- Helps you keep assets like your home or car
A knowledgeable Asheville bankruptcy lawyer will evaluate your finances and explain the benefits of each option—along with whether bankruptcy is the right choice or if alternatives may work better.
2. What Are the Costs of Filing for Bankruptcy?
Understanding the total cost helps you plan ahead and avoid surprises.
Common expenses include:
- Court filing fees
- Attorney fees
- Mandatory credit counseling
- Financial management courses
Your attorney should clearly explain each cost and whether payment plans are available.
3. Which Debts Can Be Discharged?
Bankruptcy can eliminate many debts, but not all.
Typically dischargeable:
- Credit card debt
- Medical bills
- Personal loans
- Most unsecured debts
NOT dischargeable:
- Student loans (except rare hardship cases)
- Child support or alimony
- Most tax debts
- Debts from fraud or illegal activity
Knowing which debts remain after filing helps you set realistic expectations.
4. How Will Bankruptcy Affect My Credit?
Bankruptcy impacts your credit, but the effect is temporary.
What to expect:
- Chapter 7 stays on your report for 10 years
- Chapter 13 remains for 7 years
- Credit can often be rebuilt within 12–24 months
- Many clients receive offers for secured credit cards shortly after discharge
Your lawyer should explain how to rebuild your credit and avoid future financial pitfalls.
5. What Property Can I Keep?
North Carolina has strong bankruptcy exemptions designed to protect essential assets.
Common exemptions include:
- Your primary residence (up to a certain equity limit)
- Your vehicle
- Clothing and household goods
- Retirement accounts and pensions
- Certain tools needed for work
Your attorney will help you understand how exemptions apply and how to protect your property.
6. How Long Will My Case Take?
Bankruptcy timelines vary:
Typical timeframes:
- Chapter 7: 4–6 months
- Chapter 13: 3–5 years (repayment plan)
A local Asheville attorney will provide a personalized timeline based on your case.
7. What Documents Do I Need?
Being prepared with the right documents speeds up the process.
You may need:
- Tax returns
- Pay stubs or income documentation
- Bank statements
- List of debts and creditors
- Titles or property deeds
- Monthly expense details
Your attorney will give you a complete checklist.
8. Will I Need to Go to Court?
Most people only need to attend one meeting:
341 Meeting of Creditors
- A short, informal meeting with the bankruptcy trustee
- Creditors may attend but rarely do
- Your lawyer will prepare you and attend with you
Additional hearings may occur if disputes arise, but your attorney will handle the legal work.
9. What Happens to My Home and Car?
Most people filing for bankruptcy in Asheville keep their home and vehicle.
Your attorney will explain:
- How the homestead exemption protects your house
- How much equity you can keep in your car
- Whether reaffirming loans is necessary
- How Chapter 13 can help you catch up on missed payments
10. How Are Co-Signed Loans Affected?
Co-signed loans can complicate a bankruptcy case.
What may happen:
- Chapter 7: Your discharge does not protect the co-signer
- Chapter 13: A repayment plan may shield them from collection
Your lawyer will help create a strategy to minimize the impact on your co-signers.
11. Are There Alternatives to Bankruptcy?
A trustworthy Asheville bankruptcy lawyer should assess all options, including:
- Debt settlement
- Debt management plans
- Credit counseling
- Loan modifications
- Negotiating lower payments
Bankruptcy is a powerful tool—but not always the best or only one.
12. How Will Bankruptcy Affect My Spouse?
Whether your spouse is affected depends on how your debts are structured.
Factors include:
- Whether debts are joint or individual
- Shared property ownership
- Whether you file jointly or separately
An attorney can help protect your spouse’s credit and financial stability.
13. What Are My Responsibilities After Filing?
You may need to:
- Complete a financial management course
- Follow your Chapter 13 repayment plan
- Respond promptly to trustee requests
- Stay organized with your finances
Your attorney will help you stay on track and avoid complications.
14. What Challenges Could Arise?
Every case is unique. Possible challenges include:
- Creditor objections
- Disputes over exemptions
- Missing or incomplete documentation
- Errors on financial forms
- Unreported assets
Experienced attorneys anticipate these issues and navigate them for you.
Learn more: How an Asheville Bankruptcy Lawyer Can Help You Rebuild
15. Why Should I Choose Pitts Hay & Hugenschmidt?
Working with the right attorney can make all the difference.
Why Asheville residents trust PHH Law Firm:
- Extensive experience in bankruptcy cases
- Personalized guidance at every step
- Clear, compassionate communication
- Proven reputation for integrity and professionalism
- Strong knowledge of North Carolina bankruptcy exemptions and laws
We are committed to helping Asheville families get a fresh start.
Conclusion: Get Guidance From a Trusted Asheville Bankruptcy Lawyer
Filing for bankruptcy doesn’t have to be overwhelming. Asking these key questions helps you understand the process, know your rights, and make informed decisions. At Pitts Hay & Hugenschmidt, our team is here to guide you from the first consultation through the final discharge—and beyond.
If you’re ready to explore your options, contact us today. An experienced Asheville bankruptcy lawyer can help you rebuild your financial future with confidence.