Your Bankruptcy Options in Alabama
Life is unpredictable, and so are its challenges. Ultimately, how we handle those challenges can determine whether the outcome will present positive or negative consequences. When it comes to solving tough financial matters, it can often be difficult to choose the option that will yield the best results. Unfortunately, many who go through a financial hardship often assume that their serious economic issues can be solved by adopting measures that will only bury them further into debt. If you are grappling with mounting debt and see no end in sight, it may be time to talk to an experienced bankruptcy attorney in Alabama about effective recourses. At Clark Law Firm, we have helped numerous clients identify the right solution for their financial needs. We offer financial solutions that can significantly decrease or eliminate debt.
No one really plans on accumulating excessive debt. However, life events, whether planned or unplanned, can change your financial standing. We understand that it may not be easy to seek help, but we can assure you that with our resources and tools, we can help alleviate your financial burden. When you choose to retain our services, you are putting your trust and financial future in capable, compassionate, and expert hands. With years of experience in the financial sector, we have successfully resolved hundreds of bankruptcy cases. Located in Birmingham, AL, our office serves clients in Jefferson County and surrounding areas.
It is a common assumption that bankruptcy should only be sought as a last resort after all other measures have been exhausted. While this can be true, sometimes pursuing bankruptcy at the first sign of financial trouble might be wise. Therefore, it is highly recommended to consult a bankruptcy attorney in Jefferson County. At Clark Law Firm, we can assess your specific circumstance and determine the best course of action. It is important to note that there are different types of bankruptcies, and figuring the right fit for your needs is a crucial step toward achieving debt relief. Our firm represents both consumers and businesses. As a result, we are readily equipped to handle Chapter 7, Chapter 13, and Chapter 11 bankruptcy cases.
Chapter 7 Bankruptcy
Known as liquidation bankruptcy, a Chapter 7 bankruptcy offers the majority of filing consumers a fresh start. Under this type of bankruptcy, many kinds of unsecured debt, such as credit card debt, personal loans, and medical bills, can be cleared away while allowing individuals to keep essential assets according to the law in Alabama. If you are interested in filing for bankruptcy, it is advised to talk to a Chapter 7 bankruptcy attorney. A consumer bankruptcy attorney in Alabama can specify the types of debts that can be discharged in your particular case.
Not everyone qualifies to file for Chapter 7 since it is designed for average to low-income households. In order to be eligible, you must pass a means test that compares your income against the median household income in Alabama. If you are below the median level, you will most likely qualify to file. To determine whether you qualify to file for Chapter 7, you should seek a knowledgeable Chapter 7 attorney.
Once you qualify and file for Chapter 7, an automatic stay will be ordered by the court, which prevents creditors from contacting you and collecting payments on debt, garnishing wages, and foreclosing your home or repossessing property.
Chapter 13 Bankruptcy
If you do not qualify to file for Chapter 7, you most likely qualify for Chapter 13. If your household income is above the median income for Alabama, you are a candidate for Chapter 13. To verify whether you can file for Chapter 13, it is essential to contact a Chapter 13 bankruptcy attorney for guidance. If you qualify for Chapter 13, the court will require you to make partial and reduced payments to creditors. In other words, you will be placed under a repayment plan in which you will have three to five years to complete depending on your case. A consumer bankruptcy attorney in Alabama can help evaluate your case and explain your repayment options. Further, during Chapter 13, the automatic stay order also applies.
If you are unsure whether Chapter 13 is a viable option, you should consult with a Chapter 13 bankruptcy attorney in Alabama.
Chapter 11 Bankruptcy
A Chapter 11 bankruptcy is the most complex type of bankruptcy. It is mainly reserved for businesses seeking to reorganize their business affairs, debts, and assets. Since pursuing a Chapter 11 means undergoing a complex process, it is imperative that an expert bankruptcy attorney in Jefferson County be consulted. After careful analysis, your bankruptcy attorney in Jefferson County will assess whether a Chapter 11 is suitable. If a Chapter 11 is expedient, your business will restructure and continue moving forward under the new plan approved by the court.
If you are interested in pursuing a Chapter 11 bankruptcy, at Clark Law Firm, we are dedicated to assisting and guiding businesses with exceptional representation.
What Are Some Of The Most Common Reasons People Find Themselves Considering Filing For Bankruptcy?
The typical reasons for bankruptcy are unexpected events, such as a life change that could not have been predicted. For instance, you are injured and that creates some sort of large medical debt, you get a judgment against you, or there was a divorce that resulted in a change of income. People find themselves in a situation where they have been able to keep things afloat for a good amount of time and then that final straw that breaks the camel’s back hits. Often people will come in with a specific problem, which may not be bankruptcy, in their minds. It may be a judgment, a garnishment, or one particular creditor calling them. After talking with them, we determine whether there are non-bankruptcy options. If there are not great non-bankruptcy options that can solve the problem, then we start looking at bankruptcy…Read More
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