Bankruptcy 2017-11-09T16:50:41+00:00

Tuscaloosa Alabama Bankruptcy Attorneys

CHAPTER 7 BANKRUPTCY

A Chapter 7 bankruptcy is considered to most as a “fresh start”. Chapter 7 has no repayment plan, which means that all unsecured debts (medical bills, credit cards, etc.) are eliminated forever through a liquidation process. However, certain debt categories such as child support, student loans, parking fees, criminal obligations, and most taxes affiliated with drugs and alcohol cannot be dismissed. Chapter 7 stops harassment calls from creditors, delays or stops foreclosure and repossession proceedings, and stops any lawsuit or garnishment against you. A typical case is discharged in three to four months.

To qualify for an Alabama Chapter 7 bankruptcy, a Trustee must review your assets and debts to determine if you cannot afford to repay your debts and then you must pass a “means test”. There are exemptions in a bankruptcy that protect property, but if the value of your property exceeds your exemptions then the Trustee may have to liquidate the property to repay creditors. Under the Alabama exemption system, you may exempt up to $15,000 of your home or other property covered by the homestead exemption. There is also a $7,500 personal property exemption for other uses, but not wages.

BENEFITS OF CHAPTER 7 POTENTIAL DRAWBACKS OF A CHAPTER 7
Medical bills and credit card bills are erased It is not a way to catch up on house or vehicle debts
and creditors can result to foreclosure or repossession for relief
Stops any civil lawsuits and garnishments You cannot terminate student loans, certain taxes, or child support
Stops all collection activity by creditors Attorney and filing fees must be paid up front
It is a quick process that only last about three months A bankruptcy can remain on your credit for up to 10 years

CHAPTER 13 BANKRUPTCY

Our experienced lawyers are prepared to give you legal advice and help you regain control of your financial situation. Contact one of our accomplished bankruptcy lawyers today at Tuscaloosa: 205-205-4404 / Helena: 870-228-3100 to determine if Chapter 13 is right for you.

BENEFITS OF CHAPTER 13 POTENTIAL DRAWBACKS OF A CHAPTER 13
Allows you to keep your home and catch up on missed payments Failure to make payments will result in your plan being dismissed
and creditors can resume collection activities
Allows you to repay child support arrearage and tax debts through your plan You must complete all payments under your plan’s time period to receive a discharge of your debts
Allows you to keep your vehicle and may be able to lower
monthly payments and interest rate
You may not be subject to new debt without court approval
Stops collection activity by collectors You may not sell or transfer property without court approval
Stops civil lawsuits and garnishments You cannot discharge unpaid student loans, child support, or some unpaid taxes
You can pay your attorney fees through the payment plan instead of up front A bankruptcy can remain on your credit for up to 10 years

THE APPROPRIATE TYPE OF BANKRUPTCY

Personal bankruptcies include Chapter 7 (liquidation) and Chapter 13 (reorganization), and businesses include Chapter 7 (liquidation but no discharge of debts for businesses) and Chapter 11 (reorganization). Farmers and fishermen may also avail of Chapter 12 bankruptcy.

DISCHARGEABLE VS. NON-DISCHARGEABLE DEBTS

There are certain categories of debts that are not dischargeable, such as alimony, child support, most student loans, and fraudulent debts. Knapp & Associates can help you determine which of your debts are dischargeable in bankruptcy in order to decide whether to file or not.

FILING REQUIREMENTS

There are certain statutory requirements that must be satisfied in filing for bankruptcy. These include mandatory credit counseling, notifications, pay stubs, a list of credits, schedules of assets, liabilities, and income, etc. Knapp & Associates can help you ensure that you fulfill all of these requirements.

AUTOMATIC STAY OF ALL COLLECTION ACTIONS

There is a comprehensive stay on all collection actions from the time of filing, and includes virtually all creditor collection activity including garnishments, liens on property, foreclosures, legal actions to collect, etc. If you are facing economic hardships, the attorneys at Knapp & Associates look forward to speaking with you so that we may work together to help you reclaim your future. If you are considering filing for bankruptcy, you should seek experienced legal counsel to help you make this very hard and extremely emotional decision.

ADVERSARIAL PROCEEDINGS

Filing for bankruptcy in Tuscaloosa is a complex task, but can get even more complicated if someone files a lawsuit within your case, alias an adversarial proceeding. An adversary proceeding occurs when a Plaintiff files a lawsuit against a Defendant in the bankruptcy court in connection to a bankruptcy proceeding.

SOME POSSIBLE ADVERSARIAL PROCEEDING INCLUDES:

  • A creditor challenging the discharge of a debt.
  • A trustee can file an adversary proceeding to ask court to deny bankruptcy discharge.
  • A trustee can file an adversary proceeding to recover preferential payments and fraudulent transfers.
  • The debtor can file an adversary proceeding to sue creditors for violating bankruptcy protection.
  • If you have filed for bankruptcy and have been served with an adversary proceeding, call The Knapp & Associates to speak with one of our expert attorneys to come up with a legal plan best suited for you.
Tuscaloosa Alabama Bankruptcy

The Attorneys at Knapp & Associates are seasoned and compassionate advocates that have helped their clients navigate bankruptcy proceedings.

You may contact us for a Free Initial Consultation by calling Tuscaloosa: 205-205-4404 / Helena: 870-228-3100