Whether we like it or not, money is a huge part of our daily lives and our lifelong goals. While money may not be able to buy happiness, it can certainly cushion the blow of negative emotions and difficulties in life. It’s no surprise that debt can significantly impact your quality of life. When your calendar is full of scheduled minimum monthly payments and you’re constantly cycling through credit cards to see which one has a bit of available credit on it, it’s hard not to become consumed with it. You don’t have to live like this, however. There are options if your debt is too much for you to handle. If you meet certain debt and income requirements, Chapter 7 bankruptcy may be a viable option for you. Learn more now by calling Padgett & Robertson at 800-303-1416. When is Bankruptcy the Right Choice for You? People often ask how you know when bankruptcy is the right choice for you. It’s not a great solution if you have a small amount of debt, you are annoyed with the number of monthly payments you have, or just don’t want to pay off the debt you’ve built up by spending a bit too much. If you have the means to pay off your debt, the court will likely dismiss your bankruptcy filing and force you to continue making payments. Or alternatively, you might find out that Chapter 13 (reorganization) is the only type of bankruptcy you qualify for. Chapter 7 (liquidation) bankruptcy is ideal for those who have truly gotten in over their heads with medical debt, credit cards, personal loans, old utility bills, and payday loans. You may want to start by taking a full look at your debts. Make a list of your debts, how much is left on each one, their interest rates, your monthly payments, and how long it will take you to pay each one off if you make minimum payments. Take a look at the total minimum monthly payment you’ll have to make just to stay current on bills, as well as the total amount you owe. Knowing how much you earn and what your other monthly expenses are, do you realistically ever see yourself being able to pay off your debt? Or are you doomed to a cycle of making minimum payments, incurring more interest charges, and scraping by each month? If you genuinely expect to be paying off your debt for the rest of your life or for decades to come, it may be time to consider bankruptcy. What Chapter 7 Bankruptcy Does—and What It Doesn’t Do Chapter 7 bankruptcy is a full discharge of qualifying debts. It differs from Chapter 13 in that you do not have to pay back part of your debt in order to get the rest discharged. Instead, your debt is considered discharged as soon as you have your meeting of creditors and get your bankruptcy approved. Debts that you may discharge through Chapter 7 include: However, Chapter 7 bankruptcy does not cover everything. As a practical matter, it does not get rid of mortgages, car loans, and other types of secured debt. If you don’t pay these types of loans, the lien holder can seize the property that was used to secure them. So, if you plan to keep that property, you will need to continue paying the debt. Other debts that are excluded from Chapter 7 bankruptcy include: Property Exemptions The court wants to ensure that debtors pay back what they can and that creditors are not unfairly burdened by bankruptcy filings. Because of this, they have strict regulations about what you can and cannot keep when filing for bankruptcy. Any assets outside the list of allowed assets will be seized by the trustee and used to pay back your creditors. From there, the rest of your debt will be discharged. Note that this does not mean that everything you own will be seized. In fact, most people who file for bankruptcy do not have to give up any of their property, thanks to exemptions. Some of the exemptions allowed in Alabama filings include: Note that Alabama, unlike some other states, does not have a vehicle exemption. You cannot exempt your vehicle under a vehicle exemption, but you may use your wildcard exemption to exempt some or all of the equity in your vehicle. How Our Team Can Help You with Your Bankruptcy The bankruptcy process is incredibly strict, with specific requirements and timelines that you must follow every step of the way. This can be very overwhelming for filers, as they have to produce enormous amounts of documentation, deliver documents and forms to the courthouse, and submit additional information as requested by the trustee. With all of the requirements for filing bankruptcy, it is very easy for filers to miss necessary information, forget important filing deadlines, or submit incomplete forms. This can lead to unnecessary delays or even a full dismissal of your case, leaving you on the hook for your debt. Our team will take care of this entire process, keeping you informed as we move forward. As you prepare for life after bankruptcy and get your finances in order, we’ll take care of the numerous tasks that must be completed before your discharge will be granted. We are also here to protect your rights throughout this process. Once you file bankruptcy, an automatic stay goes into place that prevents creditors from attempting to secure payment from you. We’ll help you notify creditors and step in if they violate the automatic stay. Contact Padgett & Robertson Today Take a chance and find out if bankruptcy could give you a new lease on life. Set up a consultation right away by reaching out online or calling us at 800-303-1416.Fairhope Chapter 7 Bankruptcy Attorneys
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4317 Downtowner Loop N.
Mobile, AL 36609
Toll Free: (800) 303-1416
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Alabama State Bar Association Regulations require the following: “No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.” 11 U.S.C. 528 of the U.S. Bankruptcy Code requires the following: “We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”