Anniston Bankruptcy Law Firm Experienced with Chapter 7 Filings

Chapter 7 Bankruptcy Attorneys Advocate for Clients

Those who file for chapter 7 bankruptcy in Anniston are able to wipe out their debt and receive a fresh start. In a chapter 7 bankruptcy, also known as liquidation, the bankruptcy trustee will gather all your assets and sell any that are not exempt, and distribute the net proceeds among your creditors to pay off your debt.

In a chapter 7 bankruptcy, certain debts, such as credit card debt and other unsecured bills, can be completely discharged (eliminated). However, certain debts cannot be discharged in a chapter 7 bankruptcy. These include:

• Alimony
• Child support
• Debt incurred through fraud
• Certain tax debt
• Student loan payments

If a chapter 7 filer brings past-due debt current and voluntarily signs a reaffirmation agreement, certain secured debts may be exempt from bankruptcy. These might include debt on a home, car, or furniture. However, once the reaffirmation agreement is signed the debt cannot be discharged for another six years, and the debtor will need to continue to pay on it just as they did before the bankruptcy filing. Debts can also be selectively reaffirmed, meaning the filer can choose to keep their home and car but give up their furniture.

Disadvantages of Chapter 7 Bankruptcy

Debtors are only allowed to file for chapter 7 bankruptcy once every six years. In a chapter 7 bankruptcy, the filer will lose all their non-exempt property sold by the trustee. Also, if they are facing foreclosure on their home, the automatic stay put in place by filing for chapter 7 will only temporarily delay the foreclosure.

Contact an Experienced Anniston, Alabama Bankruptcy Law Firm

Are you considering bankruptcy filing for chapter 7 bankruptcy in Anniston? Contact the bankruptcy attorneys at Bond & Botes Law Offices online or call 1-877-581-3396 to set up your free initial consultation today.