What is bankruptcy?
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?
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.
Chapter 13 Bankruptcy
While this is not an option for everybody, it is a useful tool for those who are facing a foreclosure and wish to keep their home. Since the housing bubble burst in 2007 coupled with the financial crisis which began in 2008, many homeowners find themselves underwater or struggling to decide which bills to pay and which ones can wait another week. Filing a Chapter 13 bankruptcy can allow you to stop a foreclosure, give you time to repay a reasonable amount of debt to your creditors, and regain control over your financial world.
There are several other significant advantages of a Chapter 13 bankruptcy as well. One is that you may, under certain circumstances, be able to pay for a vehicle at a reduced rate of interest or even less than the principal owed on the vehicle. While this area of the law can be complex, you should discuss these possibilities with the Elmer Law Firm to find out what may be accomplished.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is another type of
- Domestic support obligations (e.x. child support, alimony, spousal support)
- Taxes owed (generally those incurred within the last three tax years)
- Student Loans
- Debts arising from fraud, criminal charges, fines
by a court
With Chapter 7, most people get to
For many people, the most worrying aspect of Chapter 7 is whether they qualify or not. In 2005, Congress passed an Amendment to the Bankruptcy Code by adding a ‘means test.’ In order to file
The good news is that you are not alone, and there is a solution. You do not have to lose the home you have worked so hard to build and maintain for your family. By scheduling a free initial consultation with the Elmer Law Firm, we will find out exactly what your options are and which avenue would be best. By filing a Chapter 13 bankruptcy, you can prevent the pending foreclosure, no matter what stage of that process you are in, and catch up the amount that you are behind.
The important thing is to act quickly and call us at 205-286-8111 so we can do our job to fix the situation.
Unfortunately, vehicles are also some of the most expensive things that we own. In these troubled economic times, it is easy to fall behind on car payments. While lenders treat the situation differently and give you different grace periods, at some point the lender will look to repossess the vehicle as they are allowed to do under Alabama law. If repossessed, they will then sell the vehicle and come after you for the difference you still owe.
Do not allow your situation to get out of hand. Call today to schedule your free initial consultation so we can discuss how to save your vehicle from repossession. Just because you have missed a few payments does not mean you have to lose it. By filing a Chapter 13 bankruptcy, you can prevent the repossession and often times pay less than you owe under the contract for the vehicle.
Wage and Bank Garnishment
Before you get to this stage of losing your hard earned money to a debt collector, call the Elmer Law Firm so we can discuss your options and stop the litigation before this happens. We can often times stop the garnishment before it happens, or even get back money that has already been garnished by filing a bankruptcy.
Most important of all is that you have to act quickly before the damage is done.
Call us today at 205-286-8111 so we can help prevent your wages from being garnished.
If you have received medical care which has cost you more than your income can bear, call today at 205-286-8111 to schedule your free initial consultation. We can look at your bills and your overall financial picture to see what is your best route.