Filing Chapter 7 Bankruptcy
Chapter 7 Bankruptcy: a Fresh Financial Start
If you are burdened by debt, filing Chapter 7 bankruptcy is the fastest way to obtain debt relief and start rebuilding your credit. At Greenway Law, LLC, in Birmingham, Alabama, we offer a free initial consultation to discuss your case and determine if Chapter 7 bankruptcy is the best solution for your debt problems.
Eliminating Debt
Filing Chapter 7 bankruptcy (also known as consumer or straight bankruptcy) will eliminate all unsecured debts. An unsecured debt is any debt that is not backed up by property (such as your home, your car, or other property). Examples of unsecured debts are credit card bills, hospital bills and lawsuit judgments. Filing Chapter 7 bankruptcy also puts an immediate stop to garnishments, collection attempts and creditor harassment.
You can discharge income tax debts in some cases. The tax debt must be more than 3 years old on a return that was timely filed. If an assessment was filed against you, it must be at least 240 days since the assessment. In addition, you must have filed tax returns for two years prior to filing bankruptcy.
Some debts, such as past due child support payments and student loans, cannot be discharged, however they can be paid over time through a chapter 13 bankruptcy.
Will Filing Chapter 7 Bankruptcy Save My Home and Car?
Filing Chapter 7 puts an immediate stop to home foreclosures and car repossessions*, and gives you some time (about 30 days) to get caught up on your payments. However, if you aren't able to get caught up on your payments, the creditor can repossess the property or foreclose on your home but must first ask the bankruptcy court for permission to do so.
In Alabama, you can keep up to $5,000 in equity in your home if you are single and up to $10,000 if you are married. If you have additional equity in your home or other loans secured by property that you want to keep, filing Chapter 13 bankruptcy gives you from three to five years to get caught up on your payments.
Free Consultation With a Bankruptcy Lawyer
To discuss Chapter 7 bankruptcy with attorney Paula Greenway, call 205-324-4000 or fill out our simple contact form. We are located in Birmingham, Alabama, across from the downtown YMCA.
Learn more about Chapter 7 bankruptcy.
* If you have had two or more bankruptcy cases dismissed, your protection from home foreclosure or repossession is not as great.
