Navigating Bankruptcy with Stubbs & Perdue

Stubbs Perdue has been a leader in the bankruptcy industry for over 50 years, helping small business owners, farmers, and individuals restructure their debts, save their businesses, and protect their assets after a financial setback. We have helped thousands of individuals and business owners navigate the bankruptcy process. We understand that financial problems often require a rapid response and are well versed in addressing your needs in a timely and cost-effective manner

Understanding Bankruptcy and Your Options

Whats the difference between Chapter 7 and Chapter 13 Bankruptcy? 

Chapter 7 and Chapter 13 bankruptcy are two legal options available for individuals facing financial difficulties, but they cater to different situations:

  • Chapter 7 Bankruptcy: This is often referred to as “liquidation” bankruptcy. It’s designed for those who truly cannot afford to pay their debts. In Chapter 7, most unsecured debts like credit card bills and medical expenses can be wiped out. However, you might have to sell some of your property to pay off creditors. It’s a relatively quick process and can be completed within a few months.

  • Chapter 13 Bankruptcy: This is more like a reorganization and is often called “wage earner’s” bankruptcy. It’s meant for people with a regular income who can pay back at least a portion of their debts through a repayment plan. In Chapter 13, you get to keep all your property, including non-exempt assets. You’ll work out a plan to repay your debts over three to five years. It’s ideal for those who are behind on a mortgage or car loan and want to catch up on payments.

Choosing the Right Path

At Stubbs & Perdue, we help our clients in North Carolina evaluate all bankruptcy and non-bankruptcy case options.  We consider a number of factors including your income, assets, debts, and personal goals.  We offer a comprehensive approach and provide our recommendation so that you can make an informed decision. 

We want you to be well informed throughout the case.  The following is general information and frequently asked questions we receive from clients.

The fundamental goal of bankruptcy law is to give debtors a “fresh start”.  This is accomplished through the bankruptcy discharge which releases you from personal liability from certain debts and prohibits creditors from taking further action to collect those debts.

The attorneys at Stubbs & Perdue strongly believe in your ability to obtain a fresh start and will recommend the option that best suits your needs.

  • Job Loss or Substantial Change in Income
  • Medical Expenses
  • Divorce or Separation
  • Business Debts
  • Loss of a Loved One or Family Member

The attorneys at Stubbs & Perdue understand that filing for bankruptcy may be a difficult decision and the result of an unexpected life change.  We will always do our best to provide a compassionate and caring approach while assisting our clients.

Most individuals chose to file a bankruptcy case under either Chapter 7 (liquidation) or Chapter 13 (wage earner plan). 

There are occasions where Chapter 11 (reorganization) or Chapter 12 (family farmer or family fisherman) may be recommended for certain individuals but these options are commonly reserved for business cases.

The attorneys at Stubbs & Perdue will meet with you and discuss available case options.  We will tailor our advice to your needs and present you with a recommended option so that you can make an informed decision.

Chapter 7 Bankruptcy

Chapter 7 is referred to as a liquidation.  The court appoints a Trustee to review and evaluate your case.  You will be allowed to claim certain property as exempt which protects it from sale by the Trustee or creditors.  Due to these exemptions most Chapter 7 cases are classified as “no asset” cases and no sale or liquidation occurs.  You may elect to continue to pay certain debts such as a mortgage or car loan.  The Chapter 7 process is efficient and most individuals receive a discharge of certain debts within 4-6 months.  

Note that Chapter 7 typically requires an income qualification and requires that attorney fees, filing fees, and costs are paid in advance.  Each case is different and costs vary depending on the specific circumstances of your case.

The attorneys at Stubbs & Perdue will personally discuss this option if available. 

Petition for Chapter 7 Bankruptcy form

Chapter 11 Bankruptcy

Chapter 11 involves a court-approved reorganization plan and is more common in business cases.  This option may be recommended to some individuals such as those that may not qualify for other case options.  

Typically, the party filing the Chapter 11 case remains in control of most assets and property during the reorganization plan.  A court-appointed Trustee may or may not be involved depending on the circumstances of your case. 

The terms of the reorganization plan will vary depending on your needs.  Some businesses elect to continue operations while downsizing or consolidating operations through the reorganization plan.  Selling property or liquidating assets through a court approved sale may be recommended.  

The attorneys at Stubbs & Perdue will personally meet with you and discuss available case options.  We will tailor our advice to your needs and present you with a recommended option so that you can make an informed decision.

Petition Form for Chapter 11 Bankruptcy

Chapter 13 Bankruptcy

Benefits of Chapter 13 include:

  • Keeping your assets: It allows you to avoid foreclosure and keep your home or car.
  • Flexible repayment: The plan is based on your income, expenses, and types of debt.

Chapter 13 can be particularly advantageous for those who have fallen behind on a mortgage or car loan and wish to make up for missed payments to retain their property.

Chapter 13 involves a court-approved repayment plan.  You will make a monthly plan payment to a court-appointed Trustee.  The typical Chapter 13 plan lasts 36-60 months (i.e., 3-5 years).  You will receive a discharge after completion of the repayment plan.  Chapter 13 may be preferred because it allows you to get caught-up on certain debts like your mortgage or car payment, repay priority debts like recent income taxes, and possibly modify or reduce certain loans such as your car loan.  Due to the automatic stay most creditors will be prohibited from taking collection action while you remain in the plan.  

The monthly plan payment amount may vary depending on your specific circumstances.  Your plan will be subject to the review of the Judge, Trustee, and creditors and may be modified depending on your specific circumstances.  

Note that filing fees and costs must be paid in advance but typically the majority of our attorney fees can be paid through the repayment plan.

The attorneys at Stubbs & Perdue will work to make your plan as affordable as possible and tailored to your specific needs.  We want your plan to be successful. 


Contact our office

To schedule a consultation, kindly complete the form provided below.