Birmingham, AL Law Firm Focuses on Chapter 7 Bankruptcy

Alabama Bankruptcy Attorneys Protect the Rights of Debtors

When a debtor files for Chapter 7 bankruptcy, they are putting their property and debts into the hands of a federal bankruptcy court. When the bankruptcy petition is filed, an automatic stay immediately goes into effect, stopping creditors from making any further collection efforts. The filer will be allowed to keep certain exempt property but must proceed cautiously or the court will liquidate their non-exempt property to pay off their creditors.

Non-dischargeable Debts

There are some debts that may not be dischargeable in a chapter 7 bankruptcy. These include:

• Recent income tax debts (within three years)
• Loans to pay taxes
• Back child support and alimony
• Divorce property settlement debt
• Student loans (unless undue hardship is proven)
• Fines or penalties for violating the law
• Debts resulting from an injury the debtor inflicted upon another person intentionally or due to intoxication
• Debts obtained through fraud or deception
• Credit purchases of over $1,150 for luxury goods or services made within 60 days of filing
• Loans or cash advances of $1,150 or more taken within 60 days of filing

Chapter 7 bankruptcies aim to treat all creditors fairly and equally. However, this cannot be done if the debtor fails to make a complete disclosure of all financial information. A discharge may be denied if a debtor makes false statements regarding their financial circumstances or attempts to hide or destroy property or records.

Contact an Experienced Birmingham, AL Chapter 7 Bankruptcy Law Firm

Are you thinking about filing for Chapter 7 bankruptcy in Alabama? Contact the Birmingham bankruptcy lawyers at the Bond & Botes Law Offices online or call 1-877-581-3396 to set up your free initial consultation and get your questions answered today.