Birmingham Bankrupty Lawyers – A Chance For A Fresh Start
Chapter 7 & 13 Bankruptcy Attorneys – Consumer Bankruptcy
At Snable Law Firm, LLC, we understand that sometimes your finances can become an overwhelming part of life. When that happens, it might be a good idea to look into the possibility of filing for bankruptcy and how doing so can help improve your financial as well as mental well-being. Our experienced attorneys can help you assess your financial situation and determine whether or not you are a good candidate to file as well as which method of bankruptcy might be the best for your needs. We are happy to represent clients filing for Chapters 7, 11 & 13.
Chapter 7 or straight Bankruptcy case, an individual or married couple requests the Bankruptcy Court to “discharge” or eliminate particular debts. The most likely and most often pursued goal in a Chapter 7 is to eliminate unsecured debt, e.g., credit cards, medical bills, payday loans. Debtors can also choose to surrender vehicles and mobile homes, and eliminate the risk of being “under water” in regards to this certain collateral. Should you wish to retain your secured collateral, e.g., vehicles, primary residence, you can do so by reaffirming the debt, or entering into a voluntary repayment plan, with each creditor.
Chapter 7 is oftentimes an effective way for debtors to get the “fresh start” that they so desperately seek.
Is Chapter 7 Bankruptcy Right For Me?
Also known as a “straight bankruptcy”, a Chapter 7 bankruptcy is the most common form of bankruptcy filed by individuals and is used to petition bankruptcy court to discharge (eliminate) many of the unsecured debt you might owe. Chapter 7 bankruptcies are typically used when you have a number of unsecured debt amounts that you are unable to repay, including debt resulting from:
- Credit Cards
- Medical Bills
- Lawsuit Judgments
- Personal Loans
Unsecured debt is named as such because there is no property used as collateral to “secure” the repayment amount. The debt you go into buying a home, for example, is secured debt because the mortgage price is secured by your property – your home. If you default upon the mortgage and are not able to pay, then your home could be seized to help repay your debt. In contrast, unsecured creditors do not have the right to take your property in order to help repay the debts in question.
When you file a Chapter 7 bankruptcy, you are asking the courts to liquidate debt stemming from credit cards, lawsuit judgments, and medical bills in order to give the filer a “fresh start”. Note that there is certain property which may not be exempt when filing for a Chapter 7, and it might be able to be seized. Speak with an experienced attorney to learn more about what you can expect with a Chapter 7 bankruptcy.
Is Chapter 13 Bankruptcy Right For Me?
A Chapter 13 bankruptcy is also known as “debtor's court”, and it is most often used by married couples or individuals to consolidate and repay debts while being granted certain protections by the court. Secured debt can be included in a Chapter 13, however you should note that you are not asking to liquidate the debt with this method. Instead, you are seeking a way to lower your monthly payments and lower or halt interest rates and late fees while making regular payments as determined by your repayment plan. This allows you to work on repaying your debt without worrying about things like repossession, garnishment, and potentially foreclosure.
Note that Chapter 13 bankruptcies tend to be complex and their outcome depends upon the specific circumstance in question. You should reach out to a bankruptcy attorney who can look at your individual case and give you a better idea about what to expect.
Chapter 11 Bankruptcy – Business Bankruptcy
A Chapter 11 bankruptcy is similar to a Chapter 13 in terms of consolidating debt so that it can be repaid, however it is most often employed by businesses. It is also a bit more complex, and will require the help of an experienced Chapter 11 bankruptcy attorney like those at Snable Law Firm, LLC. You can also learn more HERE.