Get Your Financial Fresh Start Today Through Bankruptcy
Bankruptcy Frequently Asked Questions
Have any questions or concerns about Chapter 7 or Chapter 13 bankruptcy? Check out the answers to frequently asked questions we’ve received about bankruptcy below, or feel free to fill out the form or contact us for more information and a free initial consultation.
What is Bankruptcy?
What Can Bankruptcy Do For You?
- Discharge or eliminate most, if not all of your debts;
- Temporarily stop a foreclosure proceeding to allow you time (possibly up to 60 months) to catch up on past due mortgage payments;
- Stop the repossession of your car;
- In some cases, reduce the amount that you owe on your vehicle loan to the value of the car. For example, you may owe your auto lender $20,000 on a car that is only worth $12,000. Bankruptcy may permit you to keep the car by paying your creditor only $12,000, plus interest, plus some percentage of the remaining $8,000 that you would owe.
- Lower the interest rate on your vehicle loan to a more manageable rate;
- Stop most court proceedings that have been brought against you;
- Stop wage garnishments and debt collection harassment;
- Restore or prevent termination of your utility services (though a deposit may be required);
- Challenge the claims of Creditors who are attempting to collect more than you actually owe.
What are the Different Types of Bankruptcy?
What is Chapter 7
Will I Lose All of My Property If I File Chapter 7?
Will I Lose My House or Car If I File Chapter 7?
What Property Will I Be Allowed to Keep In a Chapter 7 Filed in Alabama?
- Your “homestead”—your house or mobile home up to a total amount of $15,000; the property cannot exceed 160 acres (husband and wife may double);
- Books, burial plots, church pews, clothing needed, family portraits or pictures (unlimited amount);
- Personal property (i.e. cash, bank accounts, vehicles, etc.) up to $7,500, except life insurance;
- Annuity proceeds or avails to $250 per month;
- Disability proceeds or avails to $250 per month;
- Some types of insurance benefits, pensions, workers compensation, unemployment compensation, and various other public benefits;
- Social Security, Veterans Benefits, and other various retirement benefits;
- Property of a business partnership;
- Various other types of property.
Can I Discharge Student Loans or Taxes in a Chapter 7 Case?
What is Chapter 13?
What Chapter is Right for Me?
How Much Does Bankruptcy Cost?
A Chapter 13 case can be filed upon payment of the court filing fee and a portion of the attorney’s fees. The balance of the Chapter 13 legal fees can be paid from the monthly plan payment that you make for your Chapter 13 payment plan. The filing fees for a Chapter 13 are $310.00.
Credit Counseling Requirement:
The second course is called a Personal Financial Management Course. It must be completed within sixty (60) days after the first date set for your Section 341 Meeting with the Trustee. After completion of your Personal Financial Management Course, you will receive a certificate of completion of the course, which also must be provided to our office.
Our office has referred clients to Biblical Financial Concepts d/b/a Stand Sure Information Services to fulfill both of these requirements. After scheduling your free consultation with our office, Please call them at (205) 421-1590 or visit their website atwww.biblicalfinancialconcepts.org. Please note that there is a fee for both courses.
How Do I Get the Process of Filing Bankruptcy Started?
- Copies of all bills, loan documents, collection letters that you have received;
- Any court documents pertaining to lawsuits or foreclosure proceedings brought against you;
- Proof of your income (i.e. paystubs) received from your employer for the past 6 months;
- Copies of your tax returns filed for the past 4 years.