Chapter 7 Bankruptcy

If you are facing mounting debt and considering bankruptcy, then call our Alabama bankruptcy lawyer at (205) 201-1789 for a free consultation with a Birmingham bankruptcy attorney today.  When you call, you will receive a free consultation with a Birmingham, Alabama bankruptcy attorney who can answer your questions and help you decide if bankruptcy is the right option.

By having an Alabama attorney file Chapter 7 bankruptcy, it allows for a full discharge of your unsecured debt (which are such things as credit card debt, deficiency amounts, and medical bills) and once the bankruptcy case is filed, what is called an automatic stay is put in place.  This stay means that the creditors must stop all harassing phone calls immediately.

About a month after filing Chapter 7 you and your Alabama bankruptcy attorney must go to a meeting in front of the bankruptcy trustee. This is called the meeting of creditors (however, much of the time no creditors actually show up and it usually consists of a meeting between you, your attorney, and the trustee).  Your Birmingham bankruptcy lawyer will be present with you and many times it consists of only a few questions under oath by the trustee.

About sixty (60) days later your discharge will be entered, which means that you can usually receive a discharge of all of you unsecured debt within ninety (90) days of filing for Chapter 7. Give our Birmingham Bankruptcy Lawyer a call at (205) 201-1789 for a free consultation with an Alabama bankruptcy attorney today.

However, Chapter 7 bankruptcy also means that any non-exempt assets can be liquidated in order to pay the debt.  If all of your debt is credit card debt and you have no non-exempt assets (and meet all additional conditions such as income based tests) then by filing Chapter 7 you can get all of this debt discharged and obtain a fresh start.

Our Birmingham bankruptcy attorney will walk you through this process during your consultation and go over the different types of bankruptcy available to you. During this consultation with our Birmingham bankruptcy attorney, we can go over your financial and other information and decide whether you can file Chapter 7 bankruptcy. Give our Alabama bankruptcy lawyer a call at (205) 201-1789 and speak with an Alabama bankruptcy attorney today.

To determine which bankruptcy to file, our Birmingham bankruptcy attorneys will take the information provided and run an income based test. This income based test is called the means test and the first step in the means test is for your lawyer to consider whether your average household income over the previous six months is less than or equal to the median income for a household of your size in Alabama.  If so, then you may qualify for Chapter 7, but if you do not meet this test then there are other ways for you to still qualify.

If you have assets that you wish to keep and cannot exempt or if you do not pass the means test, you might want to file for Chapter 13 bankruptcy.  This is a type of bankruptcy whereby a payment plan is set up over a three to five year period for you to pay your debts (and the attorney fees are included in this payment plan as well).

You might think that you are not eligible for Chapter 7 Bankruptcy or you may have spoken with a Birmingham attorney and decided that it is too expensive to file.  Attorneys can charge very high attorney fees in bankruptcy cases.  We charge $890 for our attorney fees in Chapter 7 cases.  We understand that this is a lot of money, so by working with you if you cannot afford payments all at once, our Alabama bankruptcy lawyer will attempt to make the process a little less difficult. Give our Birmingham bankruptcy lawyer a call at (205) 201-1789 for a free consultation with an Alabama bankruptcy attorney today.

There are additional costs (other than attorney fees) such as the filing fee of around $306 that goes to the Bankruptcy Court, the cost of your online credit counseling course (which is $34), cost of debtor education ($8) and a $20 cost to pull your credit report.   Give our Birmingham bankruptcy attorney a call today for a free consultation with an Alabama bankruptcy lawyer.

Chapter 13

By filing Chapter 13 bankruptcy, you can develop a manageable payment plan to repay all or part of your debt over a 3 to 5 year period.  Chapter 13 is usually the best option for individuals who can afford such a plan, and so a regular income is necessary.  The entire process is carried out through the supervision of the Bankruptcy Court and the plans must be within five years.  The Court approves an interest free repayment plan.  The repayment must begin within 30 to 45 days after your lawyer has started your case.

Our Alabama bankruptcy lawyer will help you to prepare your repayment plan and the creditors must abide by this plan.  With few exceptions, if all payments are made on the plan then the debtor is given a full plan of discharge. The most important aspect of Chapter 13 is you and your attorney creating a manageable payment plan.  If you own a home, then filing under Chapter 13 can allow you to get caught up on your payments and not have your assets sold.  It also puts a stop to the foreclosure process, which might allow you to get current on your mortgage payments over time.

If you are considering bankruptcy and need to speak with a Birmingham bankruptcy attorney, give our Birmingham office a call today at (205) 201-1789 for a free consultation with an Alabama bankruptcy lawyer.

Our attorney represents individuals statewide, but particularly in Jefferson County, Shelby County, Birmingham, Bessemer, Alabaster, Gardendale, Pelham, Trussville, Hoover, Chelsea, Helena, Homewood, and other surrounding areas of Birmingham, Alabama. Call our Alabama bankruptcy lawyer today at (205) 201-1789 for a free consultation with a Birmingham attorney today.