Birmingham Chapter 7 Bankruptcy
Bankruptcy & Debt Consolidation in Birmingham, Anniston, Gadsden, Tuscaloosa, Talladega, and Walker County areas
If you are overwhelmed by debt that you are unable to pay, filing for Chapter 7 bankruptcy is an option you may want to consider. Different from both Chapter 11 and Chpater 13 bankruptcy in a Chapter 7 bankruptcy, sometiems referred to as a liquidating bankrutpcy, in return for having debts discharged, (meaning the debtor is no longer legally obligated to pay them) the debtor turns over certain property to the Chapter 7 Bankruptcy Trustee. The law allows the debtor to keep some property as exempt so the debtor can make a fresh start, ending your sleepless nights and the stress of unpaid debt. In most cases, Chapter 7 debtors have little or no equity in their home or cars. In these instances, if the debtor has the income to continue to make the payments, most of the time they can keep the property they wish to keep, surrender the property they no longer wish to keep, and dishcharge all of their other debts such as those for credit cards and medical bills.
In most cases, Chapter 7 debtors have little or no equity in their homes or cars. In these instances, if the debtor has the income to continue to make the payments, most of the time they can keep the property they wish to keep, surrender the property they no longer wish to keep, and discharge all their other debts such as those for credit cards and medical bills. In a chapter 7 bank, the debtor discloses all of their assets and all of their debts (good and bad) in their petition. The chapter 7 trustee will determine if there is equity in their assets above the state provided exemptions and in most cases he will abandon his interest in any of the debtor’s property due to lack of significant equity. In other words, there is not enough value in the debtor’s belongings above what is owed to make it worthwhile for the court to take them and sell them for the benefit of the debtor’s creditors.
According to bankruptcy law in the rare situation where there is excessive equity in a debtor’s asset, the court may take that asset, sell it, and distribute the funds to the debtor’s creditors. There are numerous factors that affect the trustee’s decision whether or not to sell an asset. There are instances where the Chapter 7 Trustee will abandon his interest and allow you to keep your assets and the equity. Your experienced bankruptcy attorney is crucial in helping you assess that possibility and any other options.
Personal Bankruptcy in Birmingham
Cindee believes that Chapter 7 bankruptcy is an opportunity to make a fresh financial start. If you are having trouble paying even the minimum on your bills, are getting foreclosure notices about your mortgage, or have had a devastating financial setback, Cindee will guide you through the Chapter 7 process and help you get your life back on track.
The principal advantage of Chapter 7 is that the debtor emerges from bankruptcy without any future obligations on his or her discharged debts. Some debts, however, cannot be discharged. For example, debts incurred through fraud, some tax debt, debts for some student loans, child support and alimony are not dischargeable.
As soon as you file for Chapter 7 bankruptcy, your creditors can no longer attempt to collect the money that you owe them. This protection is called an automatic stay. That means you can answer the phone again, without worrying about collection agencies calling you; garnishments get released; lawsuits are stopped; and the repo man cannot legally take your belongings. To get help with these situations contacting an experienced bankruptcy attorney is highly advised.
Experienced Bankruptcy Lawyer – Cindee Dale Holmes
Please call or email the office today to make an appointment for a free consultation with Cindee Dale Holmes.
