Chapter 7 Bankruptcy Attorney
In a Chapter 7 bankruptcy (commonly known as straight bankruptcy), an individual or married couple petitions the bankruptcy court to "discharge" or eliminate particular debts. Most types of debt can be discharged in a bankruptcy case, including credit cards, medical bills, payday loans, unsecured loans and even, in some circumstances, debts to the Internal Revenue Service and the state of Alabama for income taxes. It is also possible to discharge debts that are secured by collateral, such as cars and mortgages, if you no longer wish to keep the secured item and want to obtain a fresh start from the debt.
Immediately upon the filing of the Chapter 7 bankruptcy case, you are shielded from all collections by your creditors. As soon as your Chapter 7 bankruptcy case is filed, your creditors are immediately notified. At this point they must stop all harassing phone calls, harassing letters, garnishments, repossessions, and foreclosures. This immediate protection from your creditors is one of the most important benefits of a Chapter 7 bankruptcy filing.
The debtor in a Chapter 7 bankruptcy can retain secured collateral, such as houses and cars, by reaching voluntary reaffirmation agreements with a specific creditor. If you reaffirm a debt, you continue to make your regular monthly payment. Individuals and married couples are also entitled to exemptions, which allow you to retain clothing and personal property and to protect equity in your house. If you claim an exemption in property, the court or creditors cannot seize this property in your Chapter 7 bankruptcy.
In the state of Alabama, individuals are allowed a $15,000 homestead exemption on their residence or $30,000 of equity for married couples. There are also other factors to discuss to determine the total equity in your home. It is possible, based on these factors, to have substantial additional equity over and above these exemption amounts and still retain possession of your home. We can discuss this in more detail during your free initial consultation.
In a Chapter 7 bankruptcy, you will not be paying money to the court for your creditors. This means that in a Chapter 7 bankruptcy, you will pay the attorney 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 has to pay one fee and one set of filing fees. After evaluating your circumstances, we can give you a quote for the fees in your case.
A Chapter 7 bankruptcy case allows an individual or family an opportunity to obtain a fresh start. C. Taylor Crockett is the perfect bankruptcy lawyer who can help you get this fresh start. During our representation of you, we will explain how you can rebuild your credit after the filing of the Chapter 7 bankruptcy case. For over 22 years, our firm has been able to help individuals and families obtain their fresh start and move forward in a positive direction.
We look forward to assisting you in regaining control of your financial situation. If you would like to discuss a Chapter 7 bankruptcy in more detail, please call our office at 205-978-3550 we will provide you with basic information.