Bankruptcy Attorney Helena, Alabama
With the economy in its current condition, millions have lost their jobs and have been crippled by increasing credit card debt, car payments, and mortgages. If you find yourself unable to keep up with your payments, bankruptcy may be an option for you. Call Today (205) 419-4414.
We proudly serve to Helena, Alabaster, Pelham, Hoover, Calera and Montevallo, Al.
What is Bankruptcy?
Bankruptcy is a means for a fresh start. It allows for certain debts to be discharged, allowing you to put money towards food on the table instead of back into your creditor's pockets.
When should Bankruptcy be Considered?
- You have a significant amount of debt (credit cards, loans, mortgage payments, etc.) and can only afford to make the minimum payments or no payment at all.
- You are unable to make your mortgage payment and the bank is threatening foreclosure.
- You can no longer afford your car payment.
- You owe a judgment from a previous lawsuit.
What Will Bankruptcy do for You?
Filing bankruptcy allows for you to get out from under that unmanageable debt and allows you to have a fresh start. However, it is important to keep in mind that filing for bankruptcy does not provide forgiveness of certain debts including the following:
- Domestic support obligations such as child support and alimony
- Certain Tax Debts
- Student Loans (In most cases)
- Damages or Restitution for willful or intentional acts
- Court Fines or Penalties
What are the Different Types of Bankruptcy?
Chapter 7 Bankruptcy
- This form of bankruptcy is known as a "straight bankruptcy" or a "liquidation bankruptcy."
- When a Chapter 7 Bankruptcy is filed, someone known as a "trustee" will begin to look into all of your assets. These assets will be liquidated (sold for cash) in order to pay off your creditors. Whatever debts are left over and are allowed to be discharged, will be discharged.
- Many assets are exempt and which of your assets are exempt will be discussed in your consultation.
- Once a bankruptcy petition is filed, you are protected by what is known as the "automatic stay." Basically, this prevents creditors from attempting to collect their debt from you.
- Roughly 30-40 days after your Bankruptcy filing, you will attend a Section 341(a) Meeting of Creditors with the Bankruptcy Trustee. This meeting is brief and the trustee will ask you several questions on the record. Usually 60 days after your Section 341(a) Meeting of Creditors you will receive a discharge of indebtedness in the form of a discharge notice for all dischargeable debts, releasing you from personal liability for those debts.
- Chapter 13 Bankruptcy
- This is known as "reorganization bankruptcy." It enables individuals with regular income to develop a plan to repay all or part of their debts.
- o Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor's current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period "for cause."
- o If the debtor's current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years.
Come see a Bankruptcy attorney at Alabama Law Services, LLC in Helena, Alabama and we will do everything we can to help you.