Chapter 7 Bankruptcy Law in Foley, AL

If you’re drowning in debt, consumed with thoughts of numbers and budgets and creditors, and unable to dodge creditors’ calls, we understand where you are. Debt is a massive burden, and it can quickly take over your whole life. But it doesn’t have to be that way. If you meet certain requirements, Chapter 7 bankruptcy can clear your qualifying debts, give you room to breathe, and allow you a chance at a fresh start.

Working with an attorney can help you take the stress out of this process and give yourself a fair shot at a new start. The Foley, AL bankruptcy attorneys at Padgett & Robertson are committed to helping you find the best option for your family’s needs. Call us at 251-336-3695 to set up a consultation now.

What Debt is Included in Chapter 7 Bankruptcy?

Depending on the type and amount of debt you have, Chapter 7 bankruptcy may be the best way to take control of your financial future. Chapter 7 bankruptcy eradicates many types of debts, including:

• Credit card debt
• Payday loans
• Medical debt
• Personal loans
• Loans to friends and family

This is all unsecured debt, which means that it isn’t guaranteed by any assets. Secured debt includes car loans and mortgages. With secured debt, if you stop making payments, the creditor can seize the asset. Chapter 7 bankruptcy can take away your secured debt—but that doesn’t mean that you get to keep the asset. While bankruptcy gets rid of the debt associated with the item, it does not erase the lien on that asset. The creditor can then repossess the item in question.

One of the major exemptions in Chapter 7 bankruptcy, as well as other types of bankruptcy, is student debt. Student loans are specifically excluded from bankruptcy in the United States, so you will continue to owe that debt after your debt is discharged. There are very few exceptions to this.

An Overview of the Chapter 7 Process

As you consider whether or not Chapter 7 bankruptcy might be the best choice for you, learn about the process you’ll have to go through and what it involves.

• Look into the requirements: You have to meet certain income and asset requirements to file for Chapter 7 bankruptcy. If you have assets beyond the exemptions allowed in Alabama, know that the trustee will take those assets and sell them to pay back your creditors as much as possible.
• Fill out the initial paperwork: You will need to fill out a significant amount of documentation to file for bankruptcy. Your initial paperwork will go over all of your assets and their value, all of your sources of income, a breakdown of your debt, and your monthly expenses. You will also need to disclose if you have given away any assets or made any extra payments on your debt.
• Go through a credit counseling course: You are required to take a credit counseling course before your meeting of creditors. This gives you the foundation you need to rebuild financially.
• Attend the 341 meeting of creditors: You will attend this meeting with your attorney. It’s generally fairly quick, only about 10 to 15 minutes. Creditors are permitted to attend, but in most cases, this does not happen. The trustee will review the information in your paperwork with you and verify that it is correct. If any creditors attend the meeting, they will also have the opportunity to ask questions.
• Take your second education course: After your meeting, plan on taking the second financial literacy education course.
• Wait for the final discharge paperwork to arrive: If there are no other issues and no creditors attempt to stop the discharge of your debt, you will receive proof of your discharged debt in about two months.

Is Chapter 7 Bankruptcy the Right Choice for You?

If you’ve struggled with your debt for some time, you may have gone back and forth on bankruptcy. Some people worry that they are shirking their responsibilities by declaring bankruptcy and think that if they just work a little harder and save a little more, they can pay off their debt. However, you have to take a real and honest look at your finances.

Run the numbers. If you budget appropriately, never run into emergencies, and put every extra penny into getting out of debt, how long will it take you to pay it off? If your account is for emergencies and unexpected expenses, how much longer will that take? For many, looking at that number is enough to show them that bankruptcy should be a top option.

If any of these things sound familiar to you, it’s time to talk to a bankruptcy lawyer in Foley:

• Creditors are calling you multiple times a day.
• You used to make minimum payments on your credit cards, but are now struggling to make even those payments.
• You find yourself having to choose between your basic needs and making debt payments.
• Your wages are being garnished.
• Creditors have threatened you with lawsuits.
• You truly cannot see a way out of your debt.

How the Team at Padgett & Robertson Can Help

Once you’ve decided to find out how Chapter 7 bankruptcy could give you a fresh start, it’s time to talk to the team at Padgett & Robertson. We are passionate about helping clients like you who have gotten in over their heads and just need some room to breathe. Our extensive experience with bankruptcy laws and Alabama’s exemptions gives us the knowledge we need to guide you through this process. As you prepare for the next stage of your life, we’ll ensure that every single requirement is met.

Contact Us to Find Out if Bankruptcy is an Option for You

Are you ready to learn more about Chapter 7 bankruptcy and find out if it aligns with your financial goals? During your consultation with Padgett & Robertson, we will take a look at your finances, learn more about your debt and income, and explain your bankruptcy options. Set up your consultation right away by calling us at 251-336-3695 or reaching out online.