Gadsden, AL Law Firm Handles Chapter 7 Bankruptcy Cases

Alabama Bankruptcy Attorneys Protect Clients’ Rights

Bankruptcy is a legal process by which individuals or entities unable to pay creditors can seek relief from some or all of their debts. Most people choose to file for either chapter 7 or chapter 13 bankruptcy, but many don’t know the difference between the two. Here is an overview of chapter 7 bankruptcy:

The Elements of Chapter 7 Bankruptcy

Chapter 7 bankruptcy is often a debtor’s first choice. This is because it typically takes only a few months to complete, filers won’t be required to pay off their creditors, and will usually be able to keep property essential to their livelihood.

When a debtor files for Chapter 7 bankruptcy, they are putting their property and debts into the hands of a federal bankruptcy court. When the bankruptcy petition is filed, an automatic stay immediately goes into effect, stopping creditors from making any further collection efforts. The filer will be allowed to keep certain exempt property but must proceed cautiously or the court will liquidate their non-exempt property to pay off their creditors

Chapter 7 bankruptcy will wipe out many types of debt, including credit card balances, past due utility payments, medical bills, personal loans, and debts related to mortgages and vehicles, as long as you are willing to give the property back if you can’t pay what you owe. However, some debts – domestic support arrearages, recent tax debt, and student loan payments – cannot usually be discharged in bankruptcy.

Contact an Experienced Gadsden, Al Chapter 7 Bankruptcy Lawyer

Do you need advice regarding filing for Chapter 7 bankruptcy in Gadsden, Alabama? Contact the Gadsden, Alabama bankruptcy lawyers at the Bone and Botes Law Offices. online or call 1-877-581-3396 to schedule your free initial consultation and discuss your options today.