Bankruptcy Options Birmingham Alabama | C. Taylor Crockett, P.C

What Is The Difference Between Secured and Unsecured Debt

taylor@taylorcrockett.com (Taylor Crockett) — Fri, 04 Jun 2021 02:58:34 GMT

All Debt Is Not Created Equal.

There are two major types of debt: secured and unsecured debt. Secured debts are backed by a tangible asset, like a house or car, while unsecured loans rely on the borrower’s credit score and ability to repay it back without consequence. If you are considering filing for bankruptcy, it is also important to understand the different types of debts that can be discharged.

What Are Secured Debts?

Secured Debts have a physical asset that is of equal value to what you are borrowing.

Secured debt can include:

Mortgages
Car loans
Home equity loans or lines of credit

What is Unsecured Debt?

Unsecured debts are not backed with assets. Unsecured debts do not give lenders the right to any collateral for the debt.

Unsecured debts can include:

Credit cards
Personal loans
Federal student loans
Medical debts

Lenders cannot seize assets with unsecured debts, but instead they often find alternative means to obtain payment. They may hire debt collectors as well as sue the borrower and ask courts for a garnishment of wages or put a lien on your assets until the debt is paid off.

Experienced Birmingham Bankruptcy Attorneys

If you are dealing with overwhelming debt, filing for bankruptcy may be the path to financial freedom. If you have unsecured debt, there are various bankruptcy options that can eliminate creditor harassment and can alleviate some liabilities. In most cases, you can reaffirm your secured loans and keep your assets. Our team at C. Taylor Crockett, P.C. has been helping families throughout Birmingham, Alabama become debt-free. Our team has the knowledge, experience, and skills needed to help you. Contact the office of C. Taylor Crockett, P.C. today to schedule your FREE consultation.

Chapter 7 Bankruptcy in Alabama

vchavez@duenorthmedia.com (Valerie Chavez) — Tue, 01 Jun 2021 21:02:01 GMT

Chapter 7 Bankruptcy in Alabama

A Chapter 7 Bankruptcy case allows you to discharge your debts while also keeping your personal and real property. Chapter 7 Bankruptcy has different requirements than a Chapter 13 bankruptcy. It's important to talk with an Alabama bankruptcy attorney before making a decision about which type suits you best. In this post, we'll discuss what Chapter 7 means in Alabama and how the bankruptcy lawyers at C. Taylor Crockett P.C . can help.

Who is eligible for Chapter 7 bankruptcy in Birmingham Alabama?

To file Chapter 7 bankruptcy in the State of Alabama, you must meet certain specifications which we will discuss in detail during your free initial consultation. A few of these requirements include:

• Your income must be below a certain level

• You will need to complete a financial management and credit counseling course. We coordinate these courses from our office and you can take one of them in your own home. We will walk you through the process during your free consultation.

How to file for Chapter 7 Bankruptcy

The process starts with an initial free consultation with our attorneys who will take time with you to discuss what options are available and which one would work best for each person’s unique circumstances. Due to Covid, we can conduct this first consultation either in our office, via Zoom, or via telephone. After determining if you are eligible for Chapter 7, a petition is filed with the local Bankruptcy Court and an automatic stay goes into effect. The automatic stay prevents creditors from continuing to harass you and to attempt to collect any further debts through wage garnishment, foreclosure, repossession or other means.

Speak to a Bankruptcy Attorney Today

Chapter 7 bankruptcy can be a stressful decision, but we're here to help. If you live in the Birmingham, Homewood, Vestavia Hills, Hoover, Jasper, Cullman, Aniston and Tuscaloosa areas, schedule your consultation today by calling us at (205) 978-3550 now!.

WHAT ARE THE COSTS OF FILING FOR BANKRUPTCY IN ALABAMA?

vchavez@duenorthmedia.com (Valerie Chavez) — Tue, 11 May 2021 19:23:14 GMT

The cost for filing for bankruptcy protection depends on the type of case you file.

The cost for filing for bankruptcy protection depends on the type of case you file. However, in either a Chapter 7 or a Chapter 13 (also known as Debtor’s Court), you need to obtain two certificates to be eligible to file your case. These are known as the Credit Counseling Certificate and a Financial Management Course Certificate. There is a flat fee of $50 to obtain these two certificates. When you go through the office of C. Taylor Crockett, P.C., we assist you in obtaining these certificates and make it as simple as possible for your convenience.

The goals of these two mandatory counseling courses are to help you learn about different financial strategies that can help improve your financial well-being. You’ll learn how to manage your finances effectively after bankruptcy. In addition, our attorneys will walk you through tips on how to rebuild your credit quickly.

The Court also has filing fees for either type of Bankruptcy. The filing fee for a Chapter 13 bankruptcy is currently $310. However, since you are reorganizing your debt in a Chapter 13, you do not have to pay this fee prior to your case being filed. It is incorporated into the payment you make to the Court for the reorganization of your debts.

In a Chapter 7, the current filing fee is $338.00. Since you seeking to eliminate debts entirely in a Chapter 7 rather than proposing a plan to repay them, this fee does need to be paid prior to the filing of your Chapter 7.

Similar to the filing fee, the majority of your attorney’s fee is usually paid through your chapter 13 plan rather than upfront. In our office, the total amount required to file your Chapter 13 case is $350.00, which includes the fees for your two mandatory certificates.

In a Chapter 7 Bankruptcy case, the attorney’s fee must be paid in full prior to filing. We base our attorney’s fees on the circumstances of your case, and we will work out a payment plan based on your budget if one is needed.

If you are interested in learning more about bankruptcy, please contact our office at your convenience. Your consultation with an attorney with C. Taylor Crockett, P.C. is a FREE consultation.