Chapter 7 Bankruptcy Attorneys in Spanish Fort, AL

Debt can be all-consuming. Whether you’ve gotten to this point via credit cards, medical debt, personal loans, payday loans, or some combination of the above, you’re wondering if bankruptcy is the solution you’re looking for. At Padgett & Robertson, our experienced attorneys can look over your finances, help you understand the various types of bankruptcy available to you, and come up with a plan.

Chapter 7 bankruptcy is the more common option used by consumers. Learn more about how it works, and if you’re ready to move forward and discuss your options, call Padgett & Robertson at 800-303-1416.

What You Should Know About Chapter 7 Bankruptcy

Chapter 7 bankruptcy is an option available to both individuals and businesses. While other types of bankruptcy involve creating a payment plan and paying off secured debt, Chapter 7 is just a straightforward discharge of all qualifying debts. The trustee looks at your filing documents, including your assets and income. They determine if you meet the financial qualifications for bankruptcy and consider the value of your assets.

If you have any assets that are non-exempt, the trustee will sell those assets and use the funds to pay off the debtors as much as possible. However, thanks to the exemptions available in Alabama, most filers do not have to sell anything.

When you file for Chapter 7 bankruptcy, you will need to go through credit counseling before the discharge is granted. You will also need to go through a financial management course. The goal of these courses is to set you up for financial success after bankruptcy and help you develop appropriate budgeting and money management skills.

After your documentation has been submitted, you will need to attend a 341 meeting, also known as a meeting of creditors. At this time, the trustee will ask you questions about your case and verify that your information is accurate and up to date. Your creditors are also allowed to attend this meeting if they choose. It’s quite uncommon for this to happen, though. Most 341 meetings are quick and painless, with courts often handling them back-to-back all day long.

At that point, your bankruptcy is complete, and your qualifying debts are discharged.

How Padgett & Robertson Can Help You During This Challenging Time

The bankruptcy process is stressful for those who have never gone through it before, and even those who have filed for bankruptcy in the past report that this is one of the most stressful experiences of their lives.

You’ll need to produce a substantial amount of documentation, meet strict deadlines, and provide any further information requested by the court. This is all going on while you still have work obligations, tasks at home, and other responsibilities. If you take it on alone, you could struggle to keep up with the demands of the bankruptcy process.

The process can lead to severe anxiety for many filers, especially if there are any hiccups or delays in the process. For example, if you are forced to turn over assets, submit additional documentation, or answer additional questions provided by the trustee, you may not know what to do next or what the implications are.

When you work with Padgett & Robertson for your Spanish Fort bankruptcy, you can breathe a sigh of relief. We have handled many bankruptcy cases just like yours, and we know exactly what to expect. Our entire process is designed to move you through it as quickly as possible, so you can get to your fresh start.

At each step along the way, we will tell you what to expect and what comes next. We’ll also explain any potential complications that may occur, how likely they are, and how they may affect your case. Should complications arise, we are more than ready to address them quickly and keep moving.

We know how painful and isolating financial issues can be. We truly believe that bankruptcy can help consumers just like you restart and get some room to breathe. Our goal is to support you along the way so you can focus on work, your family, and everything else that matters to you.

Do You Qualify for Chapter 7 Bankruptcy in Spanish Fort?

In order to file for Chapter 7 bankruptcy, you will need to meet specific qualifications. This is called the “means test.” Your household income must be lower than the median income for a family of your size in Alabama. Some types of income are not used in the means test, so even if your initial number looks too high, you still could qualify.

You take the six full months prior to your bankruptcy filing and calculate the income earned during that time. You divide the entire number by six. You can then compare it to the current median for Alabama. As of May 15, 2023, the median for a family of three is $77,419 and the median for a family of four is $94,659. This number changes fairly frequently so you should always compare your income to the most recent data.

Once you’ve calculated your income, you’ll know if you fall below the median. Even if you don’t, you may have options. You can then deduct certain monthly expenses from your income to figure out how much disposable income you have. If your disposable income falls below a set amount, you still qualify.

One concern that often comes up is how to calculate your household income if your spouse is not filing bankruptcy with you. Even if your spouse is not filing, their income will still be used in your calculation. Furthermore, creditors may still come after your spouse for debt payments if they are not filing with you. It’s important to discuss complex issues like this with your attorney.

Contact Our Team Today to Discuss Your Next Steps

The choice to file bankruptcy can change your life and give you a new lease on life. Let’s sit down and talk about your bankruptcy options. Set up a consultation with the Spanish Fort bankruptcy lawyers at Padgett & Robertson by calling us at 800-303-1416 or sending us a message online.