Filing For Chapter 7 Or Chapter 13 Bankruptcy
With mounting credit card debt and skyrocketing medical bills, millions of Americans face financial peril each year. Fortunately, the government provides a way for individuals to find a fresh start to a more stable financial future. Whether from job loss, medical emergency or the end of your marriage, we can help you navigate the bankruptcy process.
At the law office of Hawley & Associates, LLC, we have extensive experience representing clients throughout Prattville and communities throughout Alabama. We understand the worry and frustration that accompanies money troubles. Our lawyer can discuss your financial situation and discuss how the Bankruptcy Code can help you.
A Trusted Debt Relief Firm
Depending on your unique situation, our staff might suggest one form of bankruptcy over another. The two most common chapters are Chapter 7 and Chapter 13.
- Chapter 7 bankruptcy: This is often referred to as debt elimination bankruptcy. If you meet the eligibility requirements, Chapter 7 can have a relatively shorter duration and all of your unsecured debt may be erased.
- Chapter 13 bankruptcy: This is often referred to as debt reorganization. Debts are combined and a single payment is made each month to a trustee who will distribute money to the creditors. When the repayment period is completed — either a three- or five-year period — your remaining unsecured debt is eliminated.
Generally, the majority of bankruptcy filings follow Chapter 7. Depending on income level and assets, however, individuals might select Chapter 13. Income level is carefully examined in a process typically referred to as a “means test.” Individuals who fall under a certain level qualify for debt elimination. Those who reach a level greater than the income cutoff will only have Chapter 13 as a bankruptcy option.
One of the major benefits of Chapter 13’s debt reorganization and repayment plan is that a house or vehicle will not have to be surrendered back to the creditor as they might in Chapter 7. Since each individual and every family is different, however, it is crucial that you seek the counsel of an experienced bankruptcy attorney.
Discuss Your Situation With An Attorney
We can answer your questions and provide legal guidance tailored specifically to your needs. Call us at 334-595-8114 or send the firm an email to schedule a consultation to discuss your financial concerns.