It’s hard for working people to make ends meet these days. Even dual-income families find themselves in uncomfortable situations and in need of assistance from bankruptcy courts. Not being able to pay your bills can be disheartening. And the situation is only made worse by relentless harassment from creditors and threats of lawsuits and wage garnishment. At Padgett & Robertson, we have been helping Mobile, Alabama clients get a fresh financial start through personal bankruptcy since 1978. We understand what you’re going through. When you take action to file for personal bankruptcy, you can stop the creditors in their tracks and get started on the road to debt relief. Although people often have a negative perception of bankruptcy, there are plenty of situations in which it is your best course of action. Naturally, bill collectors and loan sharks don’t want you to file for bankruptcy. But that’s not the point. When you are so overwhelmed by financial debt that there is little hope of getting to the other side, some relief might be in order. Here are a few situations in which bankruptcy might be the best option: Whatever your debt situation, our law firm can help you get relief. When we meet, we will explore all the legal options available to you. As a consumer, you generally have two choices when filing for personal bankruptcy – Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 bankruptcy allows you to completely erase most of your debt, which is why it is commonly referred to as a “fresh start” bankruptcy. It can help you get rid of credit card debt, medical debt, personal loans, deficiency balances, certain tax debts, and many legal judgments. The courts require that you liquidate assets to satisfy your creditors, but there are exemptions allowing you to hold onto certain property, such as a primary residence or vehicle. Not everyone qualifies for Chapter 7 bankruptcy. You must pass a “means test” to establish eligibility. Specifically, the courts will compare your income less any allowable expenses with that of the median income of the same family size in Alabama. Unless your income is extremely high, you are likely to qualify. If you file for Chapter 7 bankruptcy, the court will place a trustee in charge of your case. Once the process is complete to the satisfaction of the trustee, you will be granted a full discharge of all eligible debts. Chapter 13 bankruptcy is a legal tool that allows you to create and follow a realistic debt repayment plan. If you cannot pass the “means test” for Chapter 7 bankruptcy or want to avoid liquidating some of your assets, Chapter 13 bankruptcy might be the better option. With this type of bankruptcy, you work out a 3 to 5-year repayment plan with affordable payments made to the bankruptcy trustee. The trustee, in turn, makes payments to your creditors who are no longer permitted to harass you about debts. Once you successfully complete the repayment period, the court will enter an order discharging the remainder of your debts. Our clients consider personal bankruptcy a positive course of action for several reasons: Benefits aside, bankruptcy will temporarily damage your credit rating, and it will take several years to recover. Also, certain debts are not dischargeable in bankruptcy, such as student loans, alimony and child support, and some tax obligations. Your initial consultation with one of our experienced bankruptcy attorneys is always free. You will get the information you need to make an informed choice about your financial future. There are no upfront filing or attorney fees due to file for Chapter 13 bankruptcy. These fees will be included in your monthly payments to the court. A court filing fee of $338 must be paid to file a Chapter 7 bankruptcy. Attorney fees are usually paid before filing and are based on the complexity of your case. Our firm offers reasonable payment plans. The law now requires that anyone filing for personal bankruptcy (Chapter 7 or 13) complete a mandatory credit counseling course. This is a simple course that you can complete from home or at our office, and the cost averages from $9.76 to $25. At Padgett & Robertson, we understand that the decision to file for personal bankruptcy is a difficult one. For more than 40 years, our firm has been representing the interests of clients throughout southern Alabama and the Mobile area. If you are struggling with overwhelming debt and facing harassment by creditors, there’s a good chance our services can provide you with the relief and fresh start you need. Contact our Mobile office today at (251) 342-0264 or reach out to us online to schedule a free initial consultation.Mobile, Alabama Personal Bankruptcy Lawyers
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4317 Downtowner Loop N.
Mobile, AL 36609
Toll Free: (800) 303-1416
Phone: (251) 342-0264
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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.”