Daphne, Alabama Personal Bankruptcy Lawyers

Facing financial hardship can be stressful and overwhelming. It can leave a person feeling hopeless about their financial future, afraid of what might happen if they continue to leave bills unpaid, worried about their ability to keep food on the table and a roof over their head, and anxious and on edge every time the phone rings. For many, experiencing large amounts of debt can feel as though there are no options and, sometimes, accumulating more debt might feel like the only way to continue meeting one’s basic needs.

At the law office of Padgett & Robertson, our Daphne, Alabama personal bankruptcy lawyers understand the feelings of fear and anxiety you’re experiencing, and we want to help. There may be multiple options for getting your debt under control, including filing for bankruptcy. To learn more about filing for bankruptcy and how our lawyers can help, call us directly or send us a message at your convenience. We are here to represent you every step of the way.

The Advantages of Filing for Bankruptcy

Filing for bankruptcy can have many advantages. However, because there are some consequences to filing for bankruptcy, too, you should always talk about the specifics of your financial situation with a qualified bankruptcy lawyer before making the decision to file. Some advantages of filing for bankruptcy might include:

Automatic stay. One of the most immediate benefits of filing for bankruptcy is that as soon as you file, the automatic stay will go into effect. The bankruptcy automatic stay is an immediate bar on creditors’ ability to contact you to recover a debt. In other words, as soon as you file for bankruptcy, a creditor cannot contact you—if they do, they are breaking the law. For people who have been dealing with non-stop calls and communications from creditors for months or years, this can be a huge relief that allows them to regain their footing.

Opportunity to repay some debts. Depending on the type of bankruptcy for which you file, one benefit to filing for bankruptcy may be the opportunity to repay your debts. If you file for Chapter 13 bankruptcy, you will enter into a repayment plan. By entering into a repayment plan, you may be able to keep a number of your assets, including your home.

Debt forgiveness. In both Chapter 7 and Chapter 13 bankruptcies, debt forgiveness is part of the process. This can be a huge relief to people who are facing such large amounts of debt that no matter how hard they work or how much they save, they will never be able to pay it off.

Clean financial slate. While there are definitely some disadvantages to the bankruptcy process, one advantage is that when the process is complete, the debtor will have a debt-free status—there will be no more creditors calling.

Sense of ownership and empowerment. Finally, filing for bankruptcy can provide you with a sense of ownership and empowerment. Drowning in debt can feel shameful and embarrassing—the best thing that you can do for yourself is to take action to get control over your finances.

Types of Personal Bankruptcy

There are two common types of personal bankruptcy; the type that you file for will largely depend on your income.

Chapter 7 bankruptcy. Chapter 7 Bankruptcy, or liquidation bankruptcy, is reserved for debtors who pass the “means test”—a debtor cannot make more than a certain amount of money in order to qualify for a Chapter 7. If a debtor does qualify, then their nonexempt assets will be liquified in order to pay back creditors; then, other debts will be discharged. It’s important to know that not all debts can be discharged in a bankruptcy case, including student loan debt and child support debt.

Chapter 13 bankruptcy. The other type of bankruptcy for individuals is a Chapter 13 bankruptcy. In a Chapter 13 bankruptcy the debtor will enter a repayment plan that lasts for three to five years. At the end of the three- or five-year period, most unpaid debts will be discharged. A Chapter 13 bankruptcy often has more advantages than does a Chapter 7, including being able to save a home from foreclosure in many cases.

What Does a Personal Bankruptcy Lawyer Do?

Filing for bankruptcy is a very complex legal process that is best navigated with the help of an experienced professional. While there is no legal requirement to hire a lawyer, doing so may reduce your stress and lead to a faster process without errors that delay the process. Here are some ways that an attorney will help:

Reviews your finances and provides you with legal advice. An attorney will start by reviewing your finances and getting a clear understanding of your financial picture. From here, your attorney can advise you of all of your options, including not filing for bankruptcy in some cases, and instead pursuing other solutions, such as debt consolidation. If bankruptcy is a wise choice for you, your attorney will recommend the type of bankruptcy for which you should file.

Assistance in filing your bankruptcy petition. Filing a bankruptcy petition is a big process and requires numerous financial documents and an attention to detail. Your attorney can handle this on your behalf while you are focusing on other elements of your life.

Explaining to you the process, your legal obligations, and your legal rights. Bankruptcy has many benefits, but it’s also a process that’s rife with legal obligations. For example, you’ll need to attend a mandatory credit counseling course; you’ll also need to execute the bankruptcy process per the terms set by the court. If you make an error or misrepresent any information, your case could be delayed or your right to file could even be rescinded.

Monitoring your bankruptcy case. Once your case has been filed and goes through the courts, your attorney will monitor your bankruptcy case and keep you apprised of any developments.

Call Our Daphne, Alabama Personal Bankruptcy Law Firm Today

If you are facing large amounts of debt and feel as though you have exhausted your debt-relief options, call our Daphne, Alabama personal bankruptcy law firm for help. You can reach us by visiting us in person, online, or by calling 251-342-0264.