North Carolina Bankruptcy Counseling
Since the 2005 Bankruptcy Act was passed, any future petitioners are required to attend credit counseling at least six months before they can file for bankruptcy. A financial management instructional course is also required after bankruptcy has been filed, usually within sixty days of closure. The 2005 Bankruptcy Act also requires that those submitting for bankruptcy first complete a means test.

The means test will judge whether or not an individual qualifies for Chapter Seven bankruptcy or will be required to file for Chapter Thirteen bankruptcy. The bankruptcy court will compare an individual's average income for a six-month time span to the median incomes for the entire state of North Carolina. This test must be completed before bankruptcy filing.

Those under the six thousand-dollar limit for a five-year span will qualify for Chapter Seven bankruptcy. This is equal to paying one hundred dollars or less a month. Those who can pay ten thousand dollars or more over a five-year time span will qualify for Chapter Thirteen bankruptcy. This is equal to paying one hundred sixty-six dollars or more a month. Any individuals who fall in between six thousand dollars and ten thousand dollars are normally subject to Chapter Seven bankruptcy.

Necessary Paperwork
When preparing to file for bankruptcy individuals are required to gather the proper paperwork. According to the new bankruptcy act these include secured debts, income resources, property assets, property possessions, unsecured debts, motor vehicle titles, real estate deeds, loan documents, tax returns for the past two years, and financial transactions over the past two years.

An attorney can help organize and gather all the needed material for petitioning. He or she will also be able to know which properties can be exempt from Chapter Seven bankruptcy and what will be noted as non-exempt. Since bankruptcy laws have become more complicated in recent years, more paperwork is required with more details. Even those who have filed for bankruptcy in the past might have difficulty with the new documents.

Automatic Stay
Once all the required paperwork has been submitted to the North Carolina bankruptcy court, all accounts and creditors will be frozen. No claims can be made and no foreclosures can be completed. This freeze will alter when Chapter Thirteen payment begins.

Ways of Filing
Bankruptcy can be filed through an online database or in person with an attorney. Online databases can offer attorney assistance or do-it-yourself forms. No matter how a bankruptcy petition is filed, nearly all bankruptcy forms are electronic for efficiency and speed. North Carolina law states the importance of carefully filing and including all the necessary information. If any document has been omitted or the court finds that any information has been purposefully falsified, the case will be dismissed.

Filing for bankruptcy is not free in North Carolina and requires payment. Chapter Seven bankruptcy will cost two hundred seventy-four dollars for filing. Chapter Thirteen bankruptcy will cost one hundred eighty-nine dollars for filing. These fees cannot be waived, however, they may be paid in monthly installments.