What will a bankruptcy do for me?
While each situation is different, a bankruptcy filing can:
- Stop a foreclosure
- Stop a repossession
- Stop someone from garnishing your wages
- Stop harassing phone calls
- Get rid of some of your debt or interest payments
- And most importantly… Give you back your financial freedom!!!
How do I know what kind of bankruptcy to file?
Together we will review your entire financial situation. We will examine all your current assets and debts. Then I will help you determine the kind of bankruptcy that best suits your needs.
What kinds of bankruptcies are there?
Generally this Chapter permits an individual who is temporarily unable to pay their debts to keep their property by repaying their creditors with future income over a period of time, usually 5 years (60 months). You would work with me to set up a Chapter 13 bankruptcy plan and after the plan is paid out, you receive a discharge of your debts. I will work directly with you to set the proper payment for you given your income, expenses and the types of debts you owe.
Advantages to Chapter 13:
- It allows fixed credit obligations (such as a car) to be spread out over a period of 60 months.
- It automatically stops creditors from proceeding with foreclosures, garnishments, suits, repossessions and levies.
- It allows tax (Federal and State) obligations to be paid through the Chapter 13 plan (and can save you interest and penalties)
- It allows arrearage or judgments for alimony or child support to be paid through your Chapter 13 plan.
- Attorney’s fees do not have to be paid up front and can be financed through the plan.
- Mortgage arrearage (the amount you are behind on your house) can be paid through the Chapter 13 plan.
- It prevents harassing letters and telephone calls from creditors.
- In many cases, it can result in lower payments.
Chapter 7 bankruptcies are designed for individuals who can’t pay all their debts. Under a Chapter 7 bankruptcy, you get a fresh start. While there are limits on the amount of property you can keep, I will work with you to create a plan which best protects your property from creditors.
Advantages to Chapter 7:
- Often lets people keep most of their property.
- Gives people a fresh start by wiping away most types of debt 100%.
- Stops garnishments for dischargeable debts.
- May discharge some tax obligations (Federal and State).
- Stops harassing phone calls and letters from creditors.
Plans for Family Farmers. Allows family farmers to repay their debts in a type of plan similar to Chapter 13. Call me if this is your situation.
Plans for businesses and some individuals. This code section is primarily for businesses and most often does not apply to individuals. Call me if you own a business that needs to be reorganized.
What does it cost to file a bankruptcy?
Filing fee for Chapter 7 – currently $335;
Filing fee for Chapter 13 – currently $310. However, in some circumstances, the entire filing fee does not have to be paid up front and it can be paid through your Chapter 13 plan payments. ($50 minimum filing fee in Montgomery) ($0 in Birmingham and Mobile)
CREDIT COUNSELING FEES
Can be completed online in our office for $18.
The attorney fees vary depending on the type of case, the amounts and type of debts you owe and how complex your case is. After your initial consultation we can determine the Attorney Fees and will give you those fees in writing. In most circumstances Chapter 13 fees will be paid through your monthly plan payments.
No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.
We are a debt relief agency. We help people file for Bankruptcy under the Bankruptcy Code.