If you are overwhelmed with debt, filing for bankruptcy may be an option. There are different reasons why people have financial problems, such as credit card bills, going through a divorce, student loans or medical expenses. An experienced Bankruptcy Attorney in Birmingham, AL can provide support and make sure you file the proper paperwork.
During the initial meeting, the lawyer will sit down with you and evaluate your current financial status. He will evaluate your assets, debts and expenses. After going over your financial information, you can decide on which chapter to file. The most common chapters are Chapter 13, Chapter 11 and Chapter 7. Chapter 13 is known as debt reorganization. This option is best for someone who can pay back most or some of their debts. Chapter 13 is also good for people who want to keep their property like cars and homes. Showing proof of income is one of the requirements for filing.
Chapter 11 is a good option for businesses in trouble. The court has the power to eliminate some or all of the business’s debts. If a business is no longer capable of maintaining debts or unable to pay creditors, then this filing allows the business to continue to stay open while stabilizing finances. During this time, the court will monitor contractual obligations and the company’s debt. Chapter 11 provides financial relief and allows business to get a fresh start.
Chapter 7 is the most common type of bankruptcy. It involves liquidating the assets of a business or individual to pay off debts, and many types of debt are eliminated. A trustee takes care of the liquidation part. After creditors have received payment, the individual can apply for a discharge. The discharge eliminates the majority of the debt and prevents creditors from continuing to collect.
Filing prevents creditors from trying to collect on the debt. It is important take advantage of your fresh start and to not continue getting into financial trouble. An experienced Bankruptcy Attorney in Birmingham, AL can help with overcoming debt problems.
