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.
For a large portion of people in America, a home is the most valuable asset they own. It’s only natural, therefore, that one of the main concerns of potential clients is how the Bankruptcy Court deals with mortgage debts. Bankruptcy Court Won’t Get Involved in Your Mortgage The good news is that for the vast majority of Chapter 7 and Chapter 13 cases, the Court will not get involved in your mortgage. You can usually continue to make your normal mortgage payments as though a bankruptcy case never happened. In fact, the Bankruptcy Court does not have the authority to…Read More
As corny as it may sound, I like to think of the folks I work with as family. Many of the attorneys and staff members at Bond & Botes have been with us for a long time. We have shared good times and bad. There have been weddings, children born, graduations, birthdays and so much more. Not everybody can say that they enjoy what they do for a living and the people that they do it with. I know that I am fortunate to be able to say both and thank God daily for his blessings. My partner Gail Donaldson…Read More
The goal every debtor has after filing bankruptcy is simple—a fresh start! Chapter 7 Bankruptcy offers a fresh start much quicker than Chapter 13 simply because the unsecured creditor’s debts are erased and allows you to pay for the debts you want to keep direct such as a mortgage or car payment. In Chapter 13, a plan typically is five years where you repay all or part of the debt you owe. The mortgage is usually paid direct to the mortgage company with any arrears included in the Chapter 13 plan. Behind on Mortgage During Bankruptcy One issue that arises…Read More
Most of us remember where we were on this day. I was vacationing at the Gulf Coast with my family and had just returned from a long bike ride. I can remember walking into the room and seeing the news coverage while my son and daughter who were 4 and 2 at the time, played in the living room floor oblivious to what was happening. Within a short time we found out that cowardly, Islamic terrorists had attacked our country. Our resolve as a country at that time was this will never happen again, but sadly I believe we have…Read More
As small business owners, we are always trying to find ways that we can assist the communities in which we work. This year was no exception! As parents, we are saddened by the many issues the Montgomery Public School system currently faces. Many schools in Montgomery are very outdated and some do not even have central air conditioning. In the news, we are constantly seeing stories about the Montgomery Public School Board members fighting over different issues and leadership changes. After praying about what would be the best way to help one of our local public schools, we decided to…Read More
When you file your Bankruptcy petition, the Bankruptcy Court will send all your creditors a Notice of Bankruptcy Case (Form 309). This Notice among other things will tell your creditors specifically which Chapter you have filed, be it a Chapter 7 or Chapter 13 Bankruptcy. They usually receive this Notice within 7 to 10 days from your filing. Don’t fret about the seemingly long time frame though, because the moment you file your Bankruptcy case, an automatic stay goes into effect. The automatic stay stops your creditors immediately in their tracks and prohibits them from initiating or continuing any collection…Read More
Now that the new school year has started, parents everywhere are looking at their bank accounts and wondering when school got so expensive. Between new clothes for the kids, fees for class trips, and the cost of new school supplies, its normal for budgets to be stretched in the Fall. As a result, we often see an increase in the number of people considering filing for bankruptcy relief. Back to School Costs Add Up For any bankruptcy filing, the Court requires a current household budget of total income and expenses. Clients often under-estimate their income and wonder “If I’m making…Read More
We have a number of clients who are employed by the Montgomery Public School system who will not be paid on time due to a ‘human error’ with the direct deposit pay system. A majority of our clients live pay check to pay check, so this error puts them in quite the bind. Some have payroll auto drafts that may incur additional fees due their wages not being paid as it should have been. In one news release, the MPS Superintendent Margaret Allen states that employees who are affected by additional charges can submit documentation to be reimbursed. Ms. Allen…Read More
This is one of the most common questions that we get asked. Inevitably, financial problems very often lead to marital problems. And a large percentage of our clients are either separated or in the process of divorcing. While every situation is unique, it is always wise to seek the advice of a bankruptcy attorney prior to finalizing and signing your divorce documents. Hold Harmless One main reason is a very common provision in most divorce documents called “Hold Harmless”. Amy Tanner in our Huntsville office wrote a wonderful article on Hold Harmless, which can be found here. In a nut…Read More
This writing may be a bit premature for the Thanksgiving season, but several things have happened within the last seven to ten days and the above statement “gratitude costs you nothing” is a phrase that kept coming up in my mind over and over again. I wish I could take credit for that phrase but it is not my own, however, this phrase reminds me of a writer in the Bible that wrote: “Be thankful, IN ALL THINGS” (emphasis mine); and “I have learned how to abased (be lacking) and I how to abound (be increasing), and in ALL things…Read More