How Bankruptcy Works

From the time you retain a debt relief lawyer, life will be calmer.

Bankruptcy is a legal proceeding that enables a person to get a fresh financial start. Debts are completely eliminated (discharged) in a Chapter 7 bankruptcy or paid off in 3-5 years in a Chapter 13 bankruptcy.

  • All of your creditors are notified that you have filed for bankruptcy and all calls should go to your lawyer.
  • Pending actions such as foreclosures, repossessions and garnishments are stopped, allowing an opportunity to catch up on payments, renegotiate loans or have the debts completely discharged.
  • Harassing creditor phone calls and letters will immediately stop when creditors are served notice.
  • Utility services will not be terminated – or will be restored if they have been terminated.
  • A Chapter 7 bankruptcy will normally be complete within 5-6 months after filing. A Chapter 13 bankruptcy takes 3-5 years.
  • You start rebuilding your credit after filing for bankruptcy.

Bankruptcy does not solve all problems, but it is an opportunity for a fresh financial start.

Secured debts, such as mortgages, car loans and other debts that are secured by liens, cannot be discharged, but the repayment terms may be renegotiated. If someone had cosigned on a loan for you, that person will still be responsible for the loan.

Bankruptcy does not discharge certain obligations such as child support, alimony, most student loans, court restitution orders, criminal fines and some taxes.

Call 1-877-ONE-DEBT and talk to our fresh start bankruptcy law firm.

Our network of offices serves clients in Alabama, Mississippi and Tennessee. The initial consultation is FREE, and we offer payment plans to ease the cost of bankruptcy.