Bankruptcy as a Strategic Tool: Why More Asheville Residents Are Choosing a Fresh Start

Here at Pitts, Hay & Hugenschmidt, P.A., we’ve helped thousands of Asheville residents find financial freedom through bankruptcy—and we’ve learned one thing for certain: bankruptcy isn’t just a way out, it’s a way forward.

There’s a long-standing myth that filing for bankruptcy is something to be ashamed of. In reality, it’s a smart legal tool that can stop the bleeding, protect your assets, and give you a strategic reset. Today, more Asheville families, professionals, and small business owners are recognizing bankruptcy as a proactive financial decision, not a desperate last resort.

In this post, we’ll explore why bankruptcy is becoming a strategic tool in Asheville, how our local expertise helps clients make the most of it, and how to know if it might be right for you.

What’s Driving Bankruptcy in Asheville?

While bankruptcy isn’t new, the reasons people file have evolved—especially here in Western North Carolina.

Rising Cost of Living

Asheville’s beauty and growing popularity have come with a price tag. The cost of housing, food, and essential services has steadily climbed, putting pressure on working families and retirees alike. Many clients we speak to are simply unable to keep up with rising expenses, even with steady income.

Medical Debt and Emergency Expenses

Unexpected medical events remain one of the top causes of bankruptcy filings in the region. Even with insurance, a serious illness or surgery can lead to tens of thousands in out-of-pocket costs. Bankruptcy can eliminate that debt and prevent further financial harm.

Credit Card and Loan Overextension

Between inflation and job uncertainty, more people are relying on credit cards and personal loans to bridge gaps. When minimum payments spiral out of control, bankruptcy can offer the chance to wipe the slate clean.

Understanding Bankruptcy as a Strategic Financial Tool

Bankruptcy is not about giving up—it’s about creating space to breathe, recover, and rebuild.

It Immediately Stops Collection Actions

Once we file your case, the automatic stay goes into effect. This legal protection halts:

Creditor phone calls
Wage garnishments
Lawsuits
Foreclosures and repossessions

This gives you the breathing room to plan your next steps without constant financial stress.

It Helps You Protect What Matters

Bankruptcy is often misunderstood as a process where you “lose everything.” In reality, North Carolina law offers generous exemptions that help protect:

Your home equity (up to a certain amount)
Vehicles
Retirement accounts
Household goods

As experienced Asheville NC bankruptcy lawyers, we make sure you keep what’s most important.

It Sets You Up for a Stronger Future

After bankruptcy, many of our clients qualify for:

Better interest rates within 1–2 years
New credit cards or secured credit options
FHA home loans in as little as 2 years

Bankruptcy clears the roadblocks so you can move forward, rebuild credit, and regain control of your financial future.

The Local Advantage – Why Asheville Residents Trust Us

Not all bankruptcy attorneys are the same. At Pitts, Hay & Hugenschmidt, P.A., we’ve built our reputation on three key pillars: local experience, honest guidance, and results that matter.

We Know the Local Courts and Trustees

Bankruptcy may be federal, but every district has its own nuances. Because we’ve worked extensively in the Western District of North Carolina, we know:

How local trustees operate
What documentation they prioritize
How to avoid common filing mistakes that delay or derail cases

We Understand Asheville’s Financial Climate

As a local firm, we don’t just know the laws—we know the community. We’ve seen how seasonal jobs, rising rent, and medical costs impact people in our area. This helps us tailor your case to your real-world needs.

We’re Here for the Long Haul

Our commitment to clients doesn’t end after discharge. We continue to provide guidance on:

Rebuilding credit
Managing finances post-bankruptcy
Avoiding future debt pitfalls

We measure success not just by closing cases—but by watching our clients thrive afterward.

Which Bankruptcy Chapter is Right for You?

Chapter 7 – For a Clean Break

Chapter 7 bankruptcy is the most common form and allows for a fast discharge of unsecured debts like:

Credit cards
Medical bills
Personal loans

To qualify, you must pass a means test that compares your income to the state median. We can help you determine if you’re eligible.

Chapter 13 – For Catching Up and Keeping Assets

Chapter 13 involves a 3- to 5-year repayment plan based on your income and debts. It’s ideal if you:

Are behind on mortgage or car payments
Have valuable assets you want to protect
Don’t qualify for Chapter 7 due to higher income

Chapter 13 gives you the time and structure to get current on payments and avoid foreclosure or repossession.

What Our Clients Are Saying

“I avoided bankruptcy for too long because I was ashamed. But after meeting with Pitts, Hay & Hugenschmidt, I realized it was the smartest move I could make. They helped me save my home and stop the constant calls. I have peace again.” — Jennifer T., Asheville, NC

“After COVID hit, my small business went under, and I didn’t know where to turn. The team helped me file Chapter 7 and protect my personal assets. Now I’m rebuilding and finally sleeping at night.” — Brian R., Buncombe County

Is Bankruptcy Right for You?

Bankruptcy isn’t for everyone—but if you’re facing any of the following, it’s time to talk:

You’re living paycheck to paycheck with no relief in sight
Creditors are suing, garnishing wages, or threatening foreclosure
You’re borrowing money just to cover bills
You’re feeling anxious, ashamed, or stuck financially

At Pitts, Hay & Hugenschmidt, P.A., we offer confidential, no-pressure consultations to help you explore your options. Our goal isn’t to “sell” bankruptcy—it’s to give you clarity.

Let’s Talk—Your Fresh Start Begins Here

You deserve peace of mind. If debt is taking over your life, you don’t have to face it alone. With decades of experience, local insight, and a track record of compassion and results, the attorneys at Pitts, Hay & Hugenschmidt, P.A. are here to help.

Take the first step. Let’s sit down, review your options, and find the right path forward—together.

Contact Us

Pitts, Hay & Hugenschmidt, P.A.
Asheville, NC
Website: [Pitts, Hay & Hugenschmidt, P.A.]
Free Consultations Available