Greensboro Bankruptcy Lawyers Still See Slumping Economy Despite Better Numbers
Although national bankruptcy filings increased 9% in 2010, North Carolina bankruptcy filings were more varied – filings increased in some parts of the state while they decreased in others.
In the Middle District of North Carolina, there was a decrease of approximately 4.6% – there were 7,170 filings in 2010, compared to the 7,521 filings in 2009. The Middle District of North Carolina includes Winston-Salem, Greensboro, and Durham (and areas in between).
Within the Middle District of North Carolina, cases for bankruptcy in Greensboro, NC were down 4.9%. In 2010, there were 2,389 cases, compared to 2,513 in 2009.
Cases for bankruptcy in Winston-Salem, NC (also in the Middle District) were down 8.6% in 2010, with 2,430 cases filed compared to 2,660 in 2009.
On the other hand, in the Western District of North Carolina, there was an increase in bankruptcy filings of approximately 2.5% in 2010. The Western District of North Carolina includes Asheville, Bryson City, Charlotte, Shelby, and Wilkesboro (and areas in between).
While it is surprising that there is such a difference in the bankruptcy filing trends between two areas that are so geographically close, there are likely reasons for the difference. For example, the job market may be slightly improving in the Middle District while there may be no improvement in the Western District. Additionally, the housing market trends may be more positive in the Middle District areas while there may be ongoing housing difficulties in the Western District cities and towns.
If you are in the Greensboro, Winston-Salem, or High Point areas and are considering filing bankruptcy, contact Duncan Law for a free, no strings attached consultation to learn more.
How Do I Get Financing for a Vehicle After Bankruptcy?
Often, when a person files bankruptcy, they are in one of four situations regarding a vehicle:
They are behind on their payments and must surrender the car (this usually happens in a Chapter 7 bankruptcy).
They drive an older vehicle that is paid off.
They are borrowing a friend or family member’s vehicle.
They are current on their payments and are able to keep their car in a Chapter 7 bankruptcy or they are able to catch up on the payments in a Chapter 13 bankruptcy.
If you fall into the first three categories, odds are, not too long after your bankruptcy is complete, you will need to purchase a new vehicle. Unfortunately, most people do not have enough extra money to pay cash for a reliable vehicle. Instead, they must look at financing an automobile.
If you need to finance a vehicle, you should wait until your bankruptcy has been discharged. If you can, you should then wait a few months and be sure that you pay all of your bills on time – even your utility bills. This will help you to begin rebuilding your credit.
When you are ready to look into financing, be sure to “shop around” at various dealerships to get competitive interest rates and prices. With the ability to do research online many of our clients have had a lot of success by shopping around online. You have the ability to contact a countless number of financing companies to see what opportunities they can provide for you.
Do not look at brand new vehicles – instead, you should be looking at two or three year old vehicles that are new to you. This will help to dramatically reduce your purchase price.
Do not be surprised if you receive an interest rate between 13-20% after your bankruptcy, simply as a result of your bankruptcy filing. One way to compensate for a higher interest rate is to look at vehicles with a lower purchase price – you must ensure that you can afford the monthly payment in your budget. For more on monthly budgeting, look at our budgeting after bankruptcy series.
The biggest thing to keep in mind when obtaining financing for a vehicle after bankruptcy is that you want a reasonable and dependable vehicle – one that you can truly afford, not necessarily the nicest, newest vehicle on the lot. That can come in time after you are able to get a lower interest rate.
Bankruptcy Lawyers in Charlotte, NC Area See 6% Increase in Filings
The decline in the national economy is reflected by an increase in personal bankruptcy filings in 2010. However, in North Carolina, bankruptcy filings increased in some parts of the state while they decreased in other areas of the state.
In 2010, national filings were up 9% from 2009. In 2010, there were 1,530,078 consumer bankruptcy filings, an increase from the 1,407,788 consumer filings in 2009.
At the local level across North Carolina, the number of bankruptcy filings in 2010 varied.
In the Western District of North Carolina, there were 8,450 new bankruptcy filings in 2010, up from the 8,238 filings in 2009 – an increase of approximately 2.5%. The Western District of North Carolina includes Asheville, Bryson City, Charlotte, Shelby, and Wilkesboro (and areas in between).
Specifically within the Western District of North Carolina, bankruptcy cases filed in Charlotte, NC were up approximately 5.7% in 2010, with 3,839 cases filed. In 2009, there were 3,631 new bankruptcy cases filed in the Charlotte division. These numbers reflect the ongoing financial difficulties that families are facing in the Charlotte area. Many of these bankruptcy filings were a direct result of a job loss or pay cut.
Within the Middle District of North Carolina, which includes Winston-Salem, Greensboro, and Durham (and areas in between), bankruptcy filings decreased 4.9% in 2010.
Why the difference in two sections of the state so geographically close? It is likely because of the varying job availability and varying housing markets. The housing markets are different from county to county. While people in the Charlotte area may be choosing to file Chapter 13 bankruptcy to stay in their homes and avoid foreclosure, the trend in Greensboro may be to not try to save the home and to instead surrender the home and later file bankruptcy. However, folks in the Greensboro area who are simply walking away from their homes will eventually be harassed and possibly sued by the mortgage company for any remaining balance due on the home. At this point, those individuals will need to file bankruptcy to eliminate their responsibility on the debt.
If you are in the Charlotte area and are considering bankruptcy, contact Duncan Law for a free, no strings attached consultation to learn more.
Who Is Considered A Dependent In Bankruptcy?
A dependent is an individual who requires and is actually receiving financial support from the debtor on a regular basis. This is usually children, grandchildren or an elderly family member. Generally, if you provide more than half of that person?s support, that person is considered your dependent.
When it comes to bankruptcy, the rules relating to whether or not a person can be claimed as your dependent are complex. There are various opinions on this topic and often times are determined on a case to case basis. Some Courts determine who is a dependent on the basis of who qualifies under the IRS standards while others use different standards. Most of the time, if they are considered dependents on your taxes the the bankruptcy courts will also consider them dependents.
The number of dependents you have is important in bankruptcy filings because it plays an important role in your Means Test calculations. Properly determining who is or is not a dependent may mean the difference between filing a Chapter 7 bankruptcy or having to file a Chapter 13 bankruptcy.
If you are uncertain as to whether an individual qualifies as your dependent, your best bet would be to consult with your bankruptcy attorney.
