Is your debt out of control?  If you are looking for some financial relief, then we might be able to help.  Call us at (205) 201-1789 or email us today for a free consultation, and speak with an Alabama bankruptcy lawyer to see if bankruptcy is the right option for you. 

CHAPTER 7 BANKRUPTCY

In 2005 the Bankruptcy Abuse Prevention and Consumer Protection Act changed the process and the conditions that one must meet in order to be able to qualify for relief under Chapter 7 of the Bankruptcy Code.  In order to be eligible to file Chapter 7 bankruptcy you must pass ‘the means test’. 

     In order to file for Chapter 7 bankruptcy you must pass the requirements of the means test. The first step in the means test is to consider whether your average household income over the previous six months is less than or equal to the median income for a household of your size in your state.  If so, then you may qualify to file for Chapter 7 bankruptcy.  If you do not meet this requirement, you still might qualify for Chapter 7 if your average household income exceeds the median income for a household of your size in your state.  If you do not meet the initial requirements of the means test, you still might be able to file Chapter 7 bankruptcy. 

    Contact our office today and let an Alabama bankruptcy lawyer guide you through this difficult process. 

      If you have no equity in your home and no other equitable interests, then depending on whether you meet the income requirements you might be eligible to file for Chapter 7 bankruptcy relief.  Filing under Chapter 7 allows you to eliminate all unsecured debt, and have your non-exempt assets liquidated to pay off your debt.  An example of an unsecured debt is credit card debt, which can be completely eliminated in Chapter 7 bankruptcy. 

     One important change caused by the 2005 amendments to the Bankruptcy Code is the credit counseling requirements that must be meet in order to receive a discharge.  We will help guide you through these credit counseling requirements, and be here to counsel you through the bankruptcy process. 

CHAPTER 13 BANKRUPTCY

     By filing bankruptcy under Chapter 13 of the Bankruptcy Code, you are able to develop a manageable payment plan to repay all or part of their debts over a three to five year period.  Much of this depends on whether the debtor's income is below or above the applicable state median income.  Chapter 13 is usually the best option for individuals with a regular income that can afford such a plan. 

     The most important aspect of this type of bankruptcy is devising a manageable payment plan.  If you own a home, then filing under Chapter 13 allows you to continue making payments and not have your assets liquidated.  It also stops the foreclosure process, which might allow you to become current on the mortgage payments over time.  There is no risk of having your assets sold to pay off your creditors, unlike Chapter 7.  By filing under this chapter, you might not have to pay all of your unsecured debt, but will have to pay the secured creditors in full. 

     Call us at (205) 201-1789 or email us today for a free consultation and speak with an Alabama bankruptcy lawyer to see if bankruptcy is the right option for you. 

     If you call or email us today and set up an appointment, distance is not a factor for the phone consultation, since our attorney will call you at the time of the appointment.  Other meeting locations may be available throughout Alabama upon request.