Bankruptcy
CHAPTER 7 BANKRUPTCY
In a Chapter 7 or straight Bankruptcy case, an individual or married couple petitions the Bankruptcy Court to “discharge” or eliminate particular debts. A debtor in Chapter 7 can retain debts and secured collateral, for example, houses and cars, by reaching voluntary reaffirmation agreements with these specific creditors. Individuals and married couples are also entitled to exemptions, which allow you to retain clothing, personal property and protect equity in your house.
In the state of Alabama, individuals are allowed a $5,000.00 homestead exemption in their residence, or $10,000.00 of equity for married couples, and retain possession of their home in a Chapter 7 straight Bankruptcy.
To determine the approximate amount of equity in your home, you will need to review your tax assessor valuation card from your county. You will deduct the total mortgage debt against your home for the market value or tax assessor value for your home to determine your equity. This simple calculation serves as a benchmark. There are other factors to discuss to determine the total equity in your home.
The primary goal for many individuals in a Chapter 7 Bankruptcy case is to eliminate unsecured debt, for example, credit cards and medical bills, or to surrender secured debts like vehicles or mobile homes and to discharge and eliminate the indebtedness owed to these creditors.
In Chapter 7 Bankruptcy cases, you will not be paying any money to the Court. This means that in a Chapter 7 case, you must pay the attorney’s fees and court costs prior to the filing of the Bankruptcy case. We can work out installment payments on your Chapter 7 Bankruptcy fees. A married couple filing a joint case only pays one fee and one set of filing fees. When you contact our office and we evaluate your circumstances, we can give you a quote of your fees.