If you're living in or around Asheville and struggling with debt, you're not alone—and you're not a failure. At Pitts, Hay & Hugenschmidt, P.A., we’ve helped thousands of Western North Carolina residents navigate overwhelming debt through compassionate and strategic bankruptcy representation.
In this blog, we’ll uncover some of the most common, yet overlooked financial traps that people in Asheville fall into—and how working with experienced Asheville NC bankruptcy lawyers can help break the cycle and restore peace of mind.
The Local Cost of Living Crunch in Asheville
A Beautiful City with Quiet Financial Pressure
Asheville is known for its vibrant arts scene, mountain beauty, and progressive spirit. But if you’re trying to pay rent or buy a home here, you know it comes at a steep price.
While tourism continues to boom, many locals are experiencing:
Rising housing costs that outpace wage growth
Medical debt from inadequate health coverage
Credit card reliance to cover day-to-day expenses
Seasonal or inconsistent income for gig workers and artists
Even financially responsible people can find themselves stretched too thin, using high-interest credit cards or personal loans to plug the gaps. Over time, this leads to unsustainable debt that feels impossible to escape.
Financial Trap #1: Using Credit to Maintain Appearances
We see it all the time—people trying to maintain the illusion of financial stability while quietly falling deeper into debt.
Making minimum payments on five credit cards
Taking out payday or online loans to cover other bills
Borrowing from friends or family to delay default
The problem is that these choices create a snowball effect, often leading to thousands of dollars in interest and fees—while nothing really gets better.
Bankruptcy as a Reset Button
If you qualify for Chapter 7 bankruptcy, you may be able to wipe out unsecured debts like credit cards, personal loans, and payday advances in as little as 90 days. This gives you a clean break from toxic debt cycles and a chance to rebuild with a better foundation.
Financial Trap #2: Medical Emergencies and Unexpected Bills
Did you know medical debt is one of the leading causes of bankruptcy in the U.S.—even among people who have insurance?
As Asheville grows, so do healthcare costs. A single visit to the ER or an unplanned surgery can leave families with:
High deductibles
Surprise out-of-network charges
Ongoing prescription or specialist expenses
We’ve had clients come to us not because they were reckless, but because they were sick, injured, or taking care of a loved one—and now they’re drowning in bills.
Bankruptcy Can Eliminate Medical Debt
Bankruptcy law allows for the discharge of medical bills under both Chapter 7 and Chapter 13, freeing you from tens of thousands in unexpected expenses.
We’ll work with you to determine whether a complete discharge or a structured repayment plan makes more sense for your situation.
Financial Trap #3: Trying to "Fix It Yourself" for Too Long
Here’s what we often see:
A person uses savings to stay afloat
Then cashes out retirement accounts to pay off cards
Then takes out personal loans or borrows against their car
Then… runs out of options
By the time they reach out to us, they’ve depleted every asset they had—and still have more debt than they can manage.
Why Sooner Is Better
One of the biggest misconceptions is that you should only file bankruptcy as a last resort. But in reality, filing sooner can help protect:
Your home and car
Your retirement savings
Your credit from deeper damage
Your mental and emotional well-being
As your local Asheville NC bankruptcy lawyers, we know the laws, the court system, and the exemptions that can keep your assets protected while giving you the relief you need.
Understanding the Bankruptcy Options
Chapter 7 – Quick Relief for Unsecured Debt
If you meet income qualifications, Chapter 7 allows you to eliminate most unsecured debts:
Credit cards
Medical bills
Personal loans
Collection accounts
Most clients keep all of their essential property, including their car and home, depending on North Carolina exemption laws.
Chapter 13 – Protect Your Home and Catch Up Over Time
If you have a steady income but have fallen behind on mortgage or car payments, Chapter 13 allows you to:
Stop foreclosure or repossession
Catch up on past-due payments
Restructure tax or child support arrears
Create a 3–5 year repayment plan
We’ll help you evaluate which chapter fits your situation best, based on your assets, income, and long-term goals.
Why Work with Pitts, Hay & Hugenschmidt, P.A.?
We’re Local Attorneys Who Focus Exclusively on Bankruptcy
We’ve dedicated our practice to bankruptcy law for over two decades. This means we understand the complexity of the process and the personal toll debt can take.
We also understand Asheville—its people, its economy, and its unique challenges.
When you work with us, you can expect:
A free, no-pressure consultation
Honest legal advice tailored to your situation
Experienced attorneys—not case managers—handling your file
Guidance from start to finish
We’re not here to judge. We’re here to help you find your footing again.
Ready to Take Control? Let’s Talk.
You don’t need to keep struggling in silence or sinking further into debt.
If you’re experiencing any of the financial traps we discussed above, it’s time to explore your options. We’ll help you understand if bankruptcy is right for you—or if there are other solutions.
Schedule Your Free Consultation Today
Website: [Pitts, Hay & Hugenschmidt, P.A.]
Location: Conveniently located in Asheville, NC
Hours: Monday – Friday, 8:30 AM – 5:00 PM
At Pitts, Hay & Hugenschmidt, P.A., we’re more than just bankruptcy lawyers. We’re part of the Asheville community, and we’re committed to helping our neighbors reclaim their peace of mind.