1927 7th Street

   Tuscaloosa, AL  35401

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Bringing peace of mind to the people of Tuscaloosa, Walker and surrounding counties.

What is bankruptcy?

Bankruptcy is a mechanism that goes back to biblical times, where God commands that there is to be a release by creditors every seven years. There are an innumerable number of situations and scenarios in which bankruptcy relief allows individuals recovery from misfortune and poor decisions.  Today, there are many circumstances that people find themselves in where filing for bankruptcy is of particular benefit.


Bankruptcy is a legal proceeding in which the individual declares to the court and their creditors that they are unable to meet their financial obligations.  Whether it be due to loss of income, an unexpected injury or medical hospitalization, or from unforeseen expenses, bankruptcy is a powerful tool available to the individual.  There are several different types of bankruptcy relief available.  The most widely used types of bankruptcy under the Bankruptcy Code are Chapter 7 and Chapter 13.


In addition to the above broad outline, bankruptcy can be of particular benefit to those facing foreclosure, auto repossession, wage and bank garnishment, or medical bills.

What is the difference between Chapter 13 and Chapter 7 bankruptcy?


There are generally two types of personal bankruptcy.  Title 11 of the United States Bankruptcy Code is broken down into Chapters - Chapter 7 and Chapter 13.  Chapter 7 of the code outlines complete liquidation of a person's debts.  Chapter 13 discharges remaining debt after the individual completes a payment plan.


Chapter 13 bankruptcy helps those that have a steady income, but they do not have enough income to pay all their debts.  Chapter 13 may save you from losing your house, cars, or other valuable items.  It is similar to a payment plan through the court system.  Once the payment plan is completed, the remaining debt is forgiven or discharged.


Chapter 7, often called straight bankruptcy, is the second type of bankruptcy filed by individuals.  Chapter 7 eliminates most unsecured debt including credit cards, medical bills, and personal loans.  However, it does not eliminate student loan debt, child support debt, back taxes, and several other types of debt.  Whereas a Chapter 13 will take several years to complete, individuals filing a Chapter 7 typically receive their discharge within 6 months time from filing.


Call today to discuss your financial options with an experienced bankruptcy attorney by scheduling a free consultation at 205-286-8111.

The Elmer Law Firm accepts clients who reside in the following counties of Western Alabama: Tuscaloosa, Walker, Fayette, Marion, Lamar, Pickens, Sumter, Greene, Bibb, Hale and Southern Winston County.  This includes individuals located in the cities of Tuscaloosa, Northport, Holt, Coaling, Jasper, Dora, Cordova, Carbon Hill, Hamilton, Hackleburg, Winfield, Fayette, Gordo, Aliceville, Vernon, Sulligent, Carrollton, Aliceville, Livingston, York, Eutaw, Forkland, Centreville, Brent, Vance, West Blocton, Moundville, Greensboro and Arley.