Montgomery, AL Bankruptcy Lawyers Help Clients Get a Fresh Start

Alabama Law Firm Focuses on Debt Relief Options

If you are facing enormous debt and can no longer pay your bills, bankruptcy can offer you a fresh start. Most personal bankruptcy cases are filed under two chapters of federal bankruptcy code – chapter 7 and chapter 13. Because federal courts have exclusive jurisdiction over bankruptcy matters, bankruptcy cases cannot be filed in a state court.

Filing for Bankruptcy

A typical bankruptcy case begins when the debtor files a petition with the bankruptcy court. Bankruptcy petitions may be filed by individuals or jointly in the case of a married couple. The bankruptcy petitioner will be required to file statements listing their current assets, income, liabilities, the names and addresses of all their creditors, and how much they owe.

When the bankruptcy petition is filed, it automatically “stays” or prevents continued debt collection efforts against the debtor and their property. As long as the stay is in place, creditors are prohibited from initiating or continuing lawsuits, garnishing the petitioner’s wages, or calling a debtor to request payment.

Chapter 7 bankruptcy cases allow the debtor to keep their exempt assets and discharge all, or most, of their general unsecured debt. In the vast majority of Chapter 7 bankruptcy cases, the debtor is able to protect all assets including a home and a car. Chapter 13 provides a debtor with the opportunity to reorganize their debt and enter into an agreement to pay off all, or a portion of their debt, over a period of time – usually three to five years. Chapter 13 is often used to catch up past due mortgage or car payments so that a foreclosure or repossession can be avoided.

Contact an Experienced Montgomery, Al Bankruptcy Law Firm

Are you considering filing for bankruptcy and looking for competent legal advice? Contact the Alabama bankruptcy attorneys at the Bone and Botes Law Offices online or call 1-877-581-3396 to set up your initial consultation today.