If you’re struggling under the weight of massive debt, Chapter 7 bankruptcy may be the ideal option to give you a fresh start. But the bankruptcy rules and forms are complicated, so it’s vital that you have a knowledgeable Alabama bankruptcy attorney on your side. At Padgett & Robertson, we have been helping people in South Alabama explore their debt relief options for over 40 years. You can count on our firm to clearly explain the ways that Chapter 7 bankruptcy can help you regain your financial footing and peace of mind. Contact our office today to schedule a free consultation. Chapter 7 bankruptcy is also referred to as a “fresh start” bankruptcy because it erases your eligible debts and allows you to start over with a clean financial slate. Some of the benefits of filing Chapter 7 may include: While you can get a great deal of debt relief through bankruptcy, many types of debt cannot be eliminated. These include: Not everyone is eligible for Chapter 7 Bankruptcy. The laws have changed to ensure that people don’t take advantage of the bankruptcy code. To be eligible, you must pass a “means test.” The first part of the means test requires a comparison between your income and the state’s median income for a family the same size. If your income is less, you qualify. If it is higher, you move to the second part of the test, which allows you to subtract certain allowable monthly expenses. If you don’t have enough disposable income to pay back your unsecured debts, you can qualify for Chapter 7 bankruptcy. There are a few other rules that could disqualify you from Chapter 7 bankruptcy. If you have had a previous Chapter 7 case in the past eight years or a Chapter 13 case in the past six years, you may not be able to file. One of the toughest things to face with overwhelming debt is the constant harassment from creditors and debt collectors. If you’re sick of the never-ending phone calls, letters, and threats, Chapter 7 bankruptcy can provide some immediate relief. Once creditors are notified that you’ve filed bankruptcy, there is an automatic stay in place. This means they can no longer take any actions to collect a debt. This stops the harassment as well as any wage garnishments, foreclosures, and repossessions. You might also hear Chapter 7 called a “liquidation bankruptcy” because the courts require that you sell off or liquidate your nonexempt property to satisfy creditors. This might sound intimidating on the surface, but there are a lot of complex rules surrounding Chapter 7 bankruptcy. Bankruptcy laws allow you to keep all of your exempt property and belongings. These include your home, personal vehicle, appliances, furniture, clothing, sports equipment, jewelry, just to name a few. Under Alabama law, individuals are given a $16,450 homestead exemption and a $8,225.00 personal property exemption. If the value of assets exceeds these figures, the trustee can liquidate them to satisfy your creditors. In reality, most people don’t lose any of their assets when they file for this type of bankruptcy. Once we verify that you are eligible for Chapter 7 bankruptcy, you must complete a court-approved credit counseling course. This takes just a few hours and can be done online. Your attorney will then file your bankruptcy petition with all the required schedules attached. As soon as this is filed, creditors can no longer pursue you for collections without a court order. The bankruptcy court will appoint a trustee to oversee your case and request any additional information, if necessary. There will be a Meeting of Creditors, where creditors can appear and ask questions. You will also be required to complete a financial management education course. This can also be done online. Within about 90 days after filing, the judge will sign an order discharging your eligible debts and your bankruptcy case will be closed. There are many good people who silently struggle with financial issues. Whether you’ve lost a job, are dealing with an illness, or have made a mistake, you are not a failure, and you deserve a solution. Our law firm understands what you are facing and knows how to turn your situation around.We use our skills and experience to: If you’d like to find out about your eligibility for Chapter 7 bankruptcy or expedite your filing, you’ll need to bring some documents to your initial appointment. If you have a recent credit report that lists all of your debts, bring this along. Otherwise, these are the items you should have on hand: Dealing with debt can be stressful enough and you deserve some answers and relief. At Padgett & Robertson, we never charge for an initial consultation. One of our experienced bankruptcy attorneys will sit down with you to review your situation and discuss your debt relief options. If Chapter 7 is appropriate, we will outline the next steps. If it isn’t, we can give you some alternatives, such as Chapter 13 bankruptcy. Contact our Mobile office today at (251) 342-0264 or reach out to us online to schedule your initial appointment.Mobile, Alabama Chapter 7 Bankruptcy Attorneys
Benefits of Chapter 7 Bankruptcy
Qualifying for Chapter 7 Bankruptcy
Automatic Stay and Protection from Creditors
Exemptions with Chapter 7
The Chapter 7 Bankruptcy Process
Helping You Find Financial Relief
Documents Required to Prepare Your Case
Speak With an Experienced Mobile, Alabama Bankruptcy Attorney
Useful Links
Contact Us
4317 Downtowner Loop N.
Mobile, AL 36609
Toll Free: (800) 303-1416
Phone: (251) 342-0264
Email
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.”