Wottom & Wooton, P.C | Durham Bankruptcy Law Blog
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We help people file Chapter 13 and Chapter 7 bankruptcies. We are classified as a debt relief agency. We help people seek bankruptcy relief under the bankruptcy code. We offer free consultations for people interested in finding out about bankruptcy. In our office you will always meet with an attorney to discuss your legal options and we never charge anything for initial consultations.
Wottom & Wooton, P.C | Durham Bankruptcy Law Blog
1w ago
For most of 2020 and 2021, government stimulus programs and historically low interest rates helped keep a lid on bankruptcy filings in the United States. However, new data reveals a shift in 2023. With the expiration of financial aid and rising borrowing costs, American bankruptcies – both business and individual – saw a significant increase for the first time since 2020. According to data published by courthouse news, overall filings surged by nearly 17% in 2023 compared to the previous year. Breaking down the numbers The data paints a more nuanced picture when comparing business versus indiv ..read more
Wottom & Wooton, P.C | Durham Bankruptcy Law Blog
2w ago
People may end up in serious debt due to a variety of financial circumstances. Some people accrue debt due to medical issues, while others may overuse credit cards and then have a hard time regaining control over their finances. Still others may get in over their heads with tax-related financial obligations. People have to pay income tax every year based on their personal resources and income. A variety of factors, including the size of their family and the source of their income, can drastically alter tax obligations. It can therefore be surprisingly easy for otherwise responsible and ethical ..read more
Wottom & Wooton, P.C | Durham Bankruptcy Law Blog
1M ago
Bankruptcy is a powerful solution for challenging personal financial matters. Individuals with massive debts and those facing particularly aggressive attempts at debt collection may file for bankruptcy. If they meet certain standards and fulfill court requirements, they can eliminate some of their debts. A successful bankruptcy filing can discharge someone's debts and temporarily stop collection activity. Creditors have to dismiss lawsuits and stop calling someone to try the force them into making payments until the courts resolve their bankruptcy filing. After someone reaches the realization ..read more
Wottom & Wooton, P.C | Durham Bankruptcy Law Blog
2M ago
Filing for bankruptcy is often someone's last option when they’re dealing with financial struggles. Most people don't want to default on their debts or have a blemish on their credit report that could drastically affect their eligibility for financial and employment opportunities for multiple years. However, individuals in a variety of situations may eventually come to realize that filing for personal bankruptcy could be the best solution available to them. Those who decide to file for bankruptcy have to decide what type of bankruptcy to pursue, as there are multiple options available. Those w ..read more
Wottom & Wooton, P.C | Durham Bankruptcy Law Blog
3M ago
Financing a vehicle purchase is relatively common. Most people do not have enough in savings to purchase a used vehicle, let alone a brand-new one. They can obtain loans to finance a vehicle purchase the same day that they start looking for options at a dealership. Many dealerships offer competitive financing options with relatively low down payments. People can even get cash back when purchasing a vehicle, which can seem very tempting around the holidays or when finances are tight. Unfortunately, lenders feel comfortable extending those offers in part because they know people cannot afford to ..read more
Wottom & Wooton, P.C | Durham Bankruptcy Law Blog
4M ago
Bankruptcy is designed to provide debt relief to financially distressed consumers, many of whom are struggling under the weight of outrageous medical bills, sky-high credit card balances and other debts. If there’s any possibility that you may need to file bankruptcy soon, however, you need to approach your holiday shopping with care. The wrong moves now could cause significant problems for your bankruptcy petition later. What’s holiday spending got to do with your bankruptcy? The bankruptcy process is designed to be fair to both debtors and their creditors. As such, the bankruptcy court reser ..read more
Wottom & Wooton, P.C | Durham Bankruptcy Law Blog
5M ago
Bankruptcy is often an individual's last line of defense before outright financial catastrophe. People often file for bankruptcy to stop creditor lawsuits or preserve their assets from repossession or foreclosure. Bankruptcy leads to a pause in collection activity and can result in the discharge of someone's eligible debts if they successfully complete the process. Many bankruptcy filers need financial relief because of medical debts or issues with credit cards. However, there are many other potential sources of overwhelming personal debt. For example, some people struggle with tax debt. Perha ..read more
Wottom & Wooton, P.C | Durham Bankruptcy Law Blog
6M ago
Those who are facing foreclosure are often looking for solutions to keep their home. They know that they’ve missed payments, but they want to get their finances in order. Keeping the home seems like the most important thing they can do. For some, one tactic to consider is declaring bankruptcy. There are two ways in which this can help with the foreclosure. An automatic stay First and foremost, filing for bankruptcy creates an automatic stay, which instructs other courts to pause the court cases that they are processing. Essentially, the bankruptcy filing has to be addressed first. Only after i ..read more
Wottom & Wooton, P.C | Durham Bankruptcy Law Blog
6M ago
As of 2023, the average U.S. adult carries $21,800 of personal debt (not including any mortgages) and may spend about 30% of their monthly income trying to pay it off (or at least keep up with the payments). Tellingly, 39% of consumers with debt issues feel like it will take them years – if not their entire lives – to pay what they owe. All that debt isn’t just taking a big bite out of people’s wallets, either; it may also be slowly destroying their health. The stress associated with a lot of debt can be disastrous Money troubles can seep into almost every aspect of a person’s life. It can lim ..read more
Wottom & Wooton, P.C | Durham Bankruptcy Law Blog
6M ago
When looking at total levels of credit card debt in the United States for the second quarter of 2023, analysts found that there had been a $45 billion increase between that point and the first quarter of the same year. Moreover, they discovered that this massive jump had pushed the total amount of credit card debt that Americans hold to a historic level, topping $1 trillion for the first time.
On top of that, the number of people failing to pay off their credit card bills has been rising. In July, it went above 5%. Financial analysts believe that it’s just going to continue following that tren ..read more