HUNTSVILLE BANKRUPTCY LAWYERS
What is Bankruptcy?
The purpose of the bankruptcy laws are to allow individuals and businesses to get a fresh financial start. When our Huntsville bankruptcy lawyer files your bankruptcy petition for you it puts an immediate stop to your creditors’ attempts to collect on the debt you owe them.
By filing you may also eliminate the obligation to pay most or all of your unsecured debts. This elimination of debt is called a discharge and can help you get a fresh start unburdened by crippling and mounting debt.
By having a bankruptcy lawyer file your petition, this can also prevent repossession of your vehicle, termination of utility services, and even halt the foreclosure of your home. Chapter 7 bankruptcy is sometimes called straight bankruptcy because it allows you to wipe out most unsecured debt.
The bankruptcy case begins when your lawyer files your petition and in about 90 days, generally, you should receive a discharge of all of your unsecured debts. Under Alabama exemption laws you can exempt up to $5000 of equity in your house, and $3000 equity in your personal property. These amounts are doubled when married couples file together.
In order to keep your property in a Chapter 7 bankruptcy, you would have to be current on those payments and attempt to reaffirm the debt on the items. For example, you can agree to continue making payments and, if current, you can keep your home in a Chapter 7 bankruptcy case. Give our Huntsville bankruptcy lawyer a call today for a consultation and speak with an attorney about your case today.
There are certain income requirements in order to be able to file a bankruptcy which are called the means test. In order to pass the means test your income must be below the median family income in your state. If it is above the median family income in your state then you might not be able to file a Chapter 7 bankruptcy.
The filing fee for Chapter 7 bankruptcy is $306 and there is also an additional costs for a pre-filing counseling course and a post filing counseling course that total around $42, depending on which approved agency you use. These courses must be done from an approved agency and can usually be done online or over the phone. Ask your bankruptcy attorney to recommend a few to you, since they will usually have a list of approved agencies.
In addition to these costs, we charge $850 for our attorney fees in most simple Chapter 7 cases. If you cannot file Chapter 7 bankruptcy or if it is not the best option for you, then you might want to consider Chapter 13.
Chapter 13 Bankruptcy
In Chapter 13, you and your attorney file a payment plan that shows how you will pay off your current and past due debts over a 3 to 5 year period. If you make your payments then at the end of the plan, you will receive a discharge. You should consider Chapter 13 if: 1) you are having financial problems and are in danger of losing your home (and have some equity in your home and do not wish to surrender it); or 2) if you are behind on your payments but if given more time you could catch up; or 3) If you have property that is not exempt, but you have a regular income and can afford to pay the creditors over time. The filing fee for Chapter 13 case can be paid in installments, and your attorney fees are included in your payment plan.
Call our Huntsville bankruptcy lawyer today to get a consultation with an attorney who can answer your bankruptcy questions and help you decide if bankruptcy is the right option for you.