Montgomery, AL Chapter 7 Bankruptcy Attorneys Advocate for Clients

Alabama Bankruptcy Law Firm Focuses on Chapter 7

Immediately upon the filing of the bankruptcy petition, the Court will enter an order called an Automatic Stay and any creditor who wishes to collect from the debtor must file a motion to obtain permission from the bankruptcy court. A successful chapter 7 bankruptcy will typically result in discharge, or forgiveness, of most of the petitioner’s debts. A discharge is the final court order that wipes away those debts and operates as a shield stopping creditors from taking any further steps to collect those debts.

Debt That May Not be Dischargeable

There are some types of debt that typically cannot be discharged in a chapter 7 bankruptcy. These include:

• Certain (but not all) taxes
• Child support obligations
• Alimony
• Divorce property settlement debt
• Most student loan payments
• Government or court-ordered fines
• Debts incurred as a result of an injury the debtor intentionally or recklessly inflicted upon someone else
• Debts acquired through fraud or deception
• Some recent cash advances
• Purchases of luxury goods immediately prior to filing

Alabama bankruptcies are intended to treat all creditors fairly and equally, but this cannot be accomplished without full disclosure of all financial information. All creditors must be listed on the bankruptcy petition, and if any are left off, the discharge issued might not apply and the debtor could be held responsible for the repayment of those debts. A discharge may also be denied if the debtor conceals or destroys property or records or makes false statements related to their financial situation.

Contact an Experienced Montgomery, Al Chapter 7 Bankruptcy Law Firm

Are you looking for competent legal advice regarding chapter 7 bankruptcy? Contact the Alabama Chapter 7 bankruptcy attorneys at the Bond & Botes Law Offices online or call 1-877-581-3396 to discuss your options today.