Bankruptcy Articles and Information

If you are buried in debt and feel like it will be impossible for you to ever dig your way out, filing for bankruptcy may the answer. The purpose of the law is to provide people who have fallen deeply in debt to have a fresh financial start in life. The reasons for needing to file for bankruptcy are not important.

There are different types of bankruptcy. The main ones used by individuals are Chapter 7 and Chapter 13. Each one serves a different purpose and has its own set of filing and discharge rules. No matter which chapter you use, on the day you file your bankruptcy petition, all debt collection by all creditors must immediately stop. A bankruptcy attorney will evaluate your financial situation and the type of debt you have and help you decide which bankruptcy chapter is the one that best meets your needs.

As most Alabamians know, on Friday, the Alabama Senate passed Governor Bentley’s lottery bill.  It is now up to the House to decide if the people of Alabama will be able to vote upon Governor Bentley’s lottery.  A vote for Governor Bentley’s proposed lottery will require that the anti-gambling clause of the Alabama Constitution be repealed.  If the anti-gambling verbiage is removed from Alabama’s Constitution then that could and likely would open the door for all gambling. About The Lottery Bill The Lottery Bill proposes to have lottery proceeds go to the state’s General Fund.  The Alabama Department of Finance…Read   More

For many Americans, the answer to this question should be yes! Medical debt is currently one of the leading reasons that people file for bankruptcy. I see that in my day to day practice and, if I am ever asked to pinpoint the main reason people file for bankruptcy, one of my top answers is medical bills. American’s Have Trouble Paying Medical Bills A recent publication by Demos, a public policy organization, cites a survey that found 26 percent of Americans between 18 and 64 have problems paying medical bills, with the uninsured more likely to report having difficulty than…Read   More

What is an Adversary Proceeding?

Posted on August 18th, 2016 by Grant McNutt

An Adversary Proceeding or “AP” as it is often called is basically a lawsuit filed within a bankruptcy case.  An AP can be filed by the Trustee, the Debtor or Creditor.  To file an Adversary Proceeding, a formal complaint must be filed with the court and served on the Defendant. The complaint will set forth all relevant facts and the relief requested and must be defended or a Default Judgment may be rendered. Reasons to File an Adversary Proceeding The reasons a Trustee, Debtor or Creditor will file an AP are usually vastly different. Creditors Adversary Proceeding Creditors usually file…Read   More

Bankruptcy and Vehicle Insurance

Posted on August 17th, 2016 by Nick Gajewski

Bankruptcy and insurance may seem to be unrelated topics at first glance, but insurance issues are common in many bankruptcy cases.  Not only is the Court involved if you’re going to be receiving insurance proceeds, but failure to keep insurance on your home or vehicle can actually result in the Court removing the bankruptcy protection from that asset. Vehicle Insurance While in Bankruptcy If you’re in a wreck or there is some other property damage that you suffer, your insurance company will look at the damage and at your insurance policy to determine the amount of funds you’ll receive.  If…Read   More

Another school year fast approaching! It’s been a few years since I’ve had a child in primary or secondary school…heck fire (that’s a very proper and old southern term) it’s been a few years since I was sending a child off to college (I like to tell people that I had my son when I was 12-it’s my dream world, right?). And, although many things have changed in recent years, I have been seeing the signs in stores for this weekend….”TAX FREE SHOPPING” in order to lure buyers into the store to purchase clothing, shoes, and a myriad of other…Read   More

This time of year, the added expenses of back to school expenses can really hurt our clients.  The supply lists seem to get longer and longer with paper products in addition to the notebooks, pencils and paper we expect every year.  This year, as a community outreach, our office “adopted” a second grade class at Highland Avenue Elementary School.  When we told Ms. Reese-Holley that we selected her class to purchase the supplies for all twenty-eight kids in her class this year, she was in complete shock.   She told us that in all her years of teaching, no one had…Read   More

Recently, I met with a couple who was behind on payments under their bond for title contract.  They were concerned because the contract allowed the seller to void the contract and treat the contract as a month to month lease instead of a sale if a default occurred.  Understandably, this couple was upset because they paid upfront a large down payment on the property and had made payments on the home for a number of years. Bond For Title For those who are unable to qualify for a conventional mortgage, a bond for title may seem appealing since it is…Read   More

I have known Scott Berry for several years. Even though we met as adversaries in the courtroom, I quickly found out that Scott is a great guy. He is a compassionate, thoughtful and skilled attorney and he takes great care of his clients.  Scott practices law in Scottsboro, Alabama and is well-respected throughout the state of Alabama. He went into the practice of law after spending several years as a schoolteacher. Scott and his family have had a rough couple of years and the last time I saw Scott in court everything was good.   I just received this jarring news…Read   More

A recent quarterly report issued by the Federal Reserve of New York found that household debt increased during the first quarter of 2016. This increase was a mere 1.1%. That doesn’t sound like much but it is an increase of $136 billion in household debt from the end of 2015 and it took the total household debt to $12.25 trillion! The number of credit inquiries within six months declined by 8 million from the previous quarter. An indicator that demand for new consumer credit may be down. Increased mortgage debt accounted for $120 billion of the $136 billion increase. Auto…Read   More

Who is the Bankruptcy Trustee?

Posted on July 28th, 2016 by Grant McNutt

Once you and your bankruptcy attorney go through your bankruptcy petition to make sure it is accurate and you both sign your names in all the appropriate places, the Petition is then filed electronically with the Court.  The second your Bankruptcy petition is filed the Court appoints a bankruptcy trustee to administer your case. A Bankruptcy Trustee is Appointed This occurs whether you file a Chapter 7 or Chapter 13 Bankruptcy and you will be required to attend a mandatory Court Hearing called the 341 Meeting of Creditors with this individual presiding.  Prior to this Court Hearing, the Trustee will…Read   More