Bankruptcy

What is bankruptcy?

Bankruptcy allows one to either obtain a fresh start free from debt or re-organize and pay off certain debts and discharge other debts.

Chapter 7 bankruptcy allows a person to claim certain property as exempt property and discharge debts that exceed his ability to pay.In Alabama your exemptions are limited and you should consult a Bankruptcy attorney.

Chapter 13 bankruptcy is known as a wage earners plan and allows a worker to make payments for up to 60 months through the Bankruptcy Trustee.The Trustee, and Bankruptcy law determine the fair distribution of property to creditors. There are several types of personal bankruptcy, with two main types. There is Chapter 7 liquidation and Chapter 13 reorganization. The Chapter 7 bankruptcy liquidation is designed primarily for the individual whose assets and property are exempt from execution. Chapter 7 bankruptcy is used often to eliminate credit card debt, medical bills and other unsecured debt.In those cases the debtor will not be required to repay any of their unsecured debts. This process takes all physical property that is not exempt and converts it to cash and then pays the proceeds to the creditors. Once all notice to creditors and the bankruptcy law is complied with the debtor may be discharged from his debts.

A Chapter 13 reorganization attempts to repay the creditors through a Chapter 13 plan over 60 months or less.

A Chapter 11 may be used when a business goes into bankruptcy proceedings.You should consult with an Alabama Bankruptcy attorney or your family lawyer to determine if bankruptcy is a viable option.

The information contained in this message is general in nature and should not substitute for the advice and counsel of a licensed bankruptcy attorney.

Checklist of items to bring with you to your initial appointment:
60 days of pay check stubs
Last 2 years tax returns
Copies of bills

For help with bankruptcy visit these sites:
Hummingbird Credit Counseling
Consumer Financial Education Foundation of America

Other Practice Areas:
Real Estate, Wills, Estate & Probate, Social Security, Personal Injury, Workers' Compensation

Disclaimer: We are Debt Relief Agencies and Attorneys at Law who help people file for bankruptcy relief under the Bankruptcy Code.