Alabama Bankruptcy Attorney
Are you in a financial situation that you do not believe you will be able to fix? If so, you may be afforded protections under the fresh start provisions, available under Alabama law. Filing for bankruptcy in Alabama should only be done with the help of an experienced attorney because there are many complex issues involved in the management of a bankruptcy petition.
Filing for bankruptcy in Alabama
All of this information must be submitted in a timely fashion and as accurately as possible. This can greatly increase a bankruptcy petitioner’s chances of success and ability to move on from this unfortunate situation with the fresh start he or she needs to put the pieces of their life together.
Recognizing your concerns should begin with an initial consultation with an Alabama bankruptcy lawyer, who will walk you through the types of bankruptcy available to individuals in Alabama as well as what makes sense for your situation. The two most common types of bankruptcy are Chapter 7 and Chapter 13.
Not everyone will be eligible to pursue Chapter 7 bankruptcy, but your initial consultation with a right attorney will be able to help you clarify these issues. You will need to be prepared to have all of your debts and assets listed on a piece of paper. Conducting an inventory of all of your personal belongings will be critical for identifying any exemptions that you may be entitled to, and to help you pursue maximum relief under Alabama bankruptcy laws. The presentation of this information and its careful evaluation will have a significant impact on the outcome of your case, including your ability to receive a Chapter 7 or Chapter 13 bankruptcy in Alabama.
Many people in Alabama who are interested in filing bankruptcy are good individuals who have fallen on bad times. You need the help of an experienced Alabama bankruptcy attorney who will treat you with the respect and dignity you deserve. If you have had difficulty paying your bills and you are feeling uncertain or stressed, you need a fresh start with the help of a bankruptcy lawyer. If you are buried in never ending credit card debt, are sick of creditor harassment, or concerned about losing your car or your home, you need to consult with an experienced Alabama bankruptcy attorney as soon as possible. Your initial consultation can help make you aware of many of the issues involved in filing for bankruptcy.
Most people are not familiar with their rights and may make mistakes if they try to handle their bankruptcy case on their own. Thankfully, hiring the right attorney to help you with all aspects of your bankruptcy claim will give you a great deal of peace of mind, so that you can receive the relief provided by bankruptcy as soon as possible.
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What You Need To Know About The Bankruptcy Process?
Your bankruptcy petition is typically filed with the help of your Alabama bankruptcy lawyer after a sit down consultation. The 2005 Bankruptcy Act, stipulates that your income and expenses are evaluated to determine whether or not you can file for Chapter 7 or whether you must file for Chapter 13. Chapter 7 is known as a total liquidation in which you are able the discharge the vast majority of your debts with some exemptions. Chapter 13 functions differently because it requires you to commit to a 3 to 5 year repayment plan for the majority of your debts. The court applies a means test to identify whether or not you are eligible for Chapter 7.
The courts look at your average wages/income for the six months prior to filing and compare it with the Alabama median income. If your income falls under the median, then you may be eligible to choose Chapter 7. If your income is higher the median, however, the other parts of the means test are used to identify whether or not you can file Chapter 7 or Chapter 13.
The bankruptcy process can only be initiated in Alabama after you list out your current income sources. This includes monthly living expenses, a list of your secured as well as unsecured debts, your financial transactions of a large nature that occurred over the last two years and all of your property. Having copies of your tax returns can assist you with this process as well. You need to evaluate which property could be exempted from being liquidated in the bankruptcy based on Alabama exemptions.
A number of different forms will need to filed with your local bankruptcy court and your lawyer can further breakdown the costs associated with filing for Chapter 7. In the event that you filing for Chapter 13, an additional requirement comes in the form of a suggested repayment plan. After any reasonable expenses are paid out, this stipulates how much will need to be paid to put towards any of your outstanding bills.
The priority claims like back child support and taxes need to be paid in full, whereas, unsecured debts like medical bills and credit card debt are typically paid in part. You must comply with all bankruptcy rules and regulations in order to avoid being accused of fraud. As soon as your paperwork is filed with your bankruptcy court, the automatic stay goes into effect; meaning that creditors can no longer contact you about your situation. The court takes over control of your debts as soon as you file bankruptcy and any property that is not covered by your Alabama exemptions becomes the responsibility of the trustee.
The primary purpose of the trustee is to ensure that creditors receive as much of the payments as possible. This individual will look over your paperwork, including any assets that you have and any exemptions that you want to claim.
A meeting of creditors is usually scheduled as soon as possible after the bankruptcy petition has been filed. Creditors often do not attend a Chapter 7 bankruptcy meeting, however, a few creditors may attend if you have filed for Chapter 13. Knowing your rights and responsibilities and proceeding with the help an experienced bankruptcy attorney in Alabama is very important to the outcome of your case as well as to your general peace of mind over the duration of your filing.
Frequently Asked Questions about Bankruptcy in Alabama
Bankruptcy can eliminate the legal obligation to pay the majority of your debts, discontinue foreclosure or your house or mobile home, prevent repossession of your car, restore or prevent termination of utility service and stop wage garnishment.
Bankruptcy prevents bill collectors from taking any further action to collect the debts after you have initiated the bankruptcy petition.
There is no doubt that bankruptcy will have an impact on your credit. However, if you are already in over your head, it is unlikely that the bankruptcy will make anything worse. Since bankruptcy eliminates your old debts, you may be in a better situation to pay current responsibilities and you could have credit in the future.
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