At Pitts, Hay & Hugenschmidt, P.A., we’ve been working with clients throughout Western North Carolina for decades, helping them understand what bankruptcy really means—and what it doesn’t.
There’s a persistent myth that bankruptcy is the last resort or a sign of personal failure. That couldn’t be further from the truth. For many of our clients here in Asheville, bankruptcy is actually the first step toward a stronger, more stable financial life.
In this blog, we want to share how filing for bankruptcy—when done strategically—can actually improve your long-term financial health, and why working with experienced Asheville NC bankruptcy lawyers like us is so important.
Bankruptcy: A Financial Reset, Not a Financial Ruin
Understanding the Purpose of Bankruptcy
Bankruptcy exists in the law for a reason. It’s not a loophole or a punishment—it’s a legal protection. When used correctly, it allows individuals and families to:
Eliminate crushing unsecured debts
Protect essential assets like homes and vehicles
Stop aggressive creditor harassment
Create breathing room for long-term planning
We often say that bankruptcy is a financial tool, not a failure. Like any tool, it has to be used correctly, and that’s where we come in.
How Filing for Bankruptcy Can Improve Your Long-Term Financial Outlook
If you're dealing with constant stress from debt, minimum payments that barely touch the principal, or you're facing foreclosure, you might feel like you're drowning. What many don’t realize is that bankruptcy can actually be a strategic way to start building toward a healthier financial future.
Here’s how.
1. Stops the Bleeding Immediately
As soon as you file bankruptcy, the court issues an automatic stay. This stops:
Wage garnishments
Foreclosures
Repossessions
Creditor calls
It gives you space to breathe and make informed decisions—without the constant pressure of collection activity.
2. Eliminates or Restructures Debts
Whether you're filing Chapter 7 to wipe out unsecured debt or Chapter 13 to reorganize what you owe, bankruptcy offers real solutions for debts that have become unmanageable.
Credit cards? Gone.
Medical bills? Gone.
Past-due utility bills? Gone.
Missed mortgage payments? Reorganized.
This can free up hundreds or even thousands of dollars a month, allowing you to redirect those funds toward savings or necessities.
3. Forces You to Budget Intentionally
Unlike simply juggling debt payments, bankruptcy forces a moment of complete financial clarity. You’ll need to list all of your:
Income sources
Monthly expenses
Assets
Liabilities
We help our clients build realistic budgets that they can stick to—during and after bankruptcy.
Rebuilding After Bankruptcy: What People Get Wrong
You Can Rebuild Credit—Faster Than You Think
One of the biggest misconceptions we hear from clients is, “I’ll never be able to get credit again.” That’s simply not true.
We’ve seen clients:
Lease cars within a year of discharge
Qualify for FHA home loans in as little as 2–3 years
Raise credit scores by 100+ points within 12–18 months
Yes, bankruptcy stays on your credit report for up to 10 years—but lenders are more interested in your financial behavior post-bankruptcy. And without crushing debt, many people are better positioned to handle credit responsibly.
Bankruptcy as a Launchpad, Not a Lifeline
At Pitts, Hay & Hugenschmidt, we take the time to educate our clients about life after bankruptcy. That includes:
How to use secured credit cards
How to track and maintain good credit habits
How to avoid predatory lenders post-filing
How to set achievable financial goals
Why Work With Pitts, Hay & Hugenschmidt, P.A.?
Deep Roots in Asheville, NC
We’re not a national call center. We’re your neighbors. Our attorneys live and work right here in Asheville, and we’ve built long-standing relationships with local trustees, court clerks, and other attorneys across the region.
That local experience gives us a practical advantage in helping you navigate the bankruptcy process efficiently and effectively.
A Team You Can Trust
Our firm includes three experienced attorneys—Andrew Pitts, Jack Hay, and Robert Hugenschmidt—who collectively bring decades of bankruptcy law expertise. Each case is handled with care, compassion, and a focus on long-term success, not short-term fixes.
Personalized Legal Strategies
We know that no two financial situations are exactly the same. Some clients are dealing with overwhelming credit card debt. Others are trying to save a home from foreclosure. Still others are self-employed and unsure how to manage business and personal debts.
We take the time to build a strategy around your goals, not just your numbers.
Common Bankruptcy Questions We Hear in Asheville
“Will I lose everything if I file for bankruptcy?”
No. Most people who file for bankruptcy in North Carolina keep all their possessions. North Carolina law includes generous exemptions that protect your home, car, retirement accounts, personal belongings, and more.
“Can bankruptcy help with student loans or tax debt?”
Sometimes. While student loans are generally non-dischargeable, there are exceptions based on hardship. Some tax debts can be discharged, especially if they meet certain age and filing requirements. We’ll review your specific situation to see what’s possible.
“How much does it cost to file bankruptcy?”
We offer affordable payment plans, and your initial consultation is always free. We’ll explain all costs upfront—no surprises.
The Next Step: Let’s Talk
If you’re struggling financially and wondering whether bankruptcy is the right move, the best thing you can do is talk to a local expert. As trusted Asheville NC bankruptcy lawyers, we’re here to listen—not judge—and help you figure out the best solution for your unique situation.
Whether you end up filing or not, our goal is to give you clarity, confidence, and control over your financial future.
Schedule a Free Consultation Today
Let’s talk about your options and take the first step toward financial stability.
Website: [Pitts, Hay & Hugenschmidt, P.A.]
Office: Conveniently located in Asheville, NC
Hours: Monday–Friday | 8:30 AM – 5:00 PM