Filing for Bankruptcy in North Alabama?
Bankruptcy Lawyers | Crumbley, Blackwell, Wisda & Associates, P.C.
Accumulated debt from car loans, credit cards, and mortgages can become incredibly overwhelming and soon you may find yourself falling farther and farther behind on your payments. In such a scenario, what can you do to gain relief?
Initiating bankruptcy proceedings is one option that can help you get a fresh start on life. If you are looking for a reliable bankruptcy lawyer to assess your financial options, contact us today. We have nearly 50 years of combined legal experience and can inform you of the best route to proceed, whether through bankruptcy or another alternative such as debt litigation.
Are there advantages to filing for bankruptcy?
Bankruptcy is a legal tool through which a debtor can eliminate their debts or create repayment plans. Alabama bankruptcy laws were enacted to give debtors fresh financial starts. Filing for bankruptcy should be the last option and only resorted to when all other options have been discarded. It is a major decision and can leave a lasting effect on your finances. Before you file for bankruptcy, it is a good idea to seek experienced advice regarding your situation.
If you decide to file bankruptcy; you can benefit from several protections, such as the following:
- Eligible debts get fully discharged. The key benefit of filing bankruptcy is that most unsecured debts become discharged and you will be left with no personal obligation.
- Unsecured creditors have no claim over your property or income. Often, the only way to protect a debtor's property from unsecured creditors is to file for bankruptcy. It can also protect your income or wages against garnishment, including Social Security benefits.
- Automatic stay protection. You gain the benefit of an automatic stay order against attempts to collect by creditors. Other creditor actions such as repossessions, utility shutoffs, attachments, evictions, and foreclosures are also stayed.
There are several other benefits to filing bankruptcy, such as protection against discriminatory actions by private employers. You will also receive protection against government bodies, protection against incarceration, and more.
If you are considering filing for bankruptcy in Huntsville, Madison, Decatur, or elsewhere in surrounding areas, be aware the bankruptcy process can be quite complicated and demanding. Here is a basic overview of what you can expect:
- Obtain credit counseling: Before filing, the government requires that you go to an approved counseling agency to see if there are other feasible ways to handle your debt.
- File your request: File a petition, the required forms, and the filing fee in your local bankruptcy court.
At this point, the next steps will depend on the chapter that you file. For Chapter 7 Bankruptcy, you will be assigned a trustee who will distribute any non-exempt property (see bankruptcy exemptions). For Chapter 13 Bankruptcy, you will be expected to develop a reorganization plan to pay back your debt. The following will then occur:
- Meeting of the creditors: Your creditors will be given the opportunity to review your case and ask questions.
- Case is approved: If there are no issues with your case, then the court will approve your petition.
At this point, the next steps will again depend on the chapter that you filed. For Chapter 7, your debts will be discharged and you can move forward. For Chapter 13, you will need to complete the payment plan, which can last anywhere from 3-5 years. Once completed, your debts will be discharged. There are also other chapters of bankruptcy available as options for specific cases, such as chapter 11.
Considering Bankruptcy? Schedule a consultation!
Wondering how you should proceed? Our experienced bankruptcy attorneys at Crumbley, Blackwell, Wisda & Associates, P.C. can sit down with you and help you review your financial situation. We can inform you if you have any other options apart from filing for bankruptcy.
If there is no other option and you can gain protection from bankruptcy laws, we can quickly prepare a case for you. To learn more about bankruptcy filing, to file one in North Alabama, or for more information, contact Crumbley, Blackwell, Wisda & Associates, P.C. to schedule a consultation.
Learn more about bankruptcy by visiting the other pages on our website or these helpful links! You can also check out our FAQ page to get answers to commonly asked questions!
- Chapter 7
- Chapter 9
- Chapter 11
- Chapter 12
- Chapter 13
- Chapter 15
- Creditor Harassment
- Means Test
- Wage Garnishment