Mobile, AL Law Firm Handle Chapter 7 Bankruptcies

Alabama Bankruptcy Lawyers Experienced with Chapter 7 Filings

In a chapter 7 bankruptcy, an individual has the opportunity to erase most or all of their debt and obtain a fresh start. Known as liquidation bankruptcy, in Chapter 7, the bankruptcy trustee will assemble all the debtor’s assets, sell (liquidate) any non-exempt resources, and use the proceeds to pay off creditors.

Exemptions

Chapter 7 allows debtors to keep certain property, or exemptions, when they files for bankruptcy. Common exemptions allowed include an individual’s equity in their:

• Home
• Automobiles
• Jewelry
• Retirement accounts
• Pensions
• Household items

Certain kinds of debt cannot be discharged in a Chapter 7 bankruptcy, including:

• Alimony
• Child support
• Fraudulent debts
• School loan balances
• Certain taxes

If the debtor wants to maintain certain secured debts, they can do so by volunteering to sign a reaffirmation agreement. Upon signing this agreement, the debtor will be required to make the back payments before the debt can be reaffirmed. Reaffirmed debt will not be dischargeable for another six years and unless it is discharged, the debtor must continue to pay on it.

Chapter 7 bankruptcy is designed to treat all creditors fairly, but this cannot be accomplished without complete release of all financial figures. All creditors must be listed on the bankruptcy petition and if any are omitted, the debtor might be responsible for repaying that debt. A discharge may be denied if the debtor hides or destroys property or records or makes untrue statements about their financial situation.

Contact an Experienced Alabama Chapter 7 Bankruptcy Attorney

Are you considering filing for Chapter 7 bankruptcy? Contact Bone and Botes, P.C. online or call 1-877-581-3396 to get advice from our experienced Alabama bankruptcy lawyers today.