BANKRUPTCY LAWYERS IN BIRMINGHAM, AL
Bankruptcy Lawyers in Birmingham, Alabama
Facing seemingly insurmountable debt is not easy, especially when your income level isn’t high enough to pay off what you owe. However, you’re not alone. In 2017 alone, there were 767, 721 nonbusiness bankruptcies. Most people that file for bankruptcy are just like you – well-intentioned people who’ve been hampered with loans and debt and have struggled for years. In fact, two of the most common reasons people go bankrupt are medical expenses and unemployment.
Experts say that if it’s going to take more than five years to pay off all your debt, filing for bankruptcy may be your best solution.
If you’re interested in filing for Chapter 7 or Chapter 13 bankruptcy, Morgan & Morgan is here to help. Having a good legal team on your side can make all the difference. Our experienced Birmingham, AL bankruptcy attorneys have a deep understanding of bankruptcy law. They’ll assess your individual situation, providing insight regarding the risks and rewards of bankruptcy and, navigate every step of the process for you.
What Happens When You File for Bankruptcy?
- First, you pay paperwork filing and attorney fees.
- Then, once the paperwork is in, you have an official creditors’ meeting. There, all the people to whom you owe money can ask questions about your finances and decision to declare bankruptcy.
- After that, you take a credit counseling class within 180 days of filing. If you want your debts discharged, you will need to take another class for that.
- Finally, your credit score will plummet. If your score was above 700, a bankruptcy could cause it to go down 100 points. Moreover, the bankruptcy remains on your credit report for a long time —ten years for Chapter 7 and seven years for Chapter 13 bankruptcy.
Chapter 7 or Chapter 13?
Chapter 7 is a liquidation bankruptcy. Meaning, you must sell nonexempt property to pay your creditors. Without nonexempt property, your creditors recover nothing. Typically, Chapter 7 filers can keep their primary residence.
Chapter 13 is a reorganization bankruptcy. It’s primarily for individuals who are over their head in loans but have disposable income after paying essential bills. With a Chapter 13, filers keep all of their property in exchange for paying creditors the value of the nonexempt property you have. Then, after restructuring your debt, you must begin to make payments.
Some debt, such as student loans, back taxes, penalties, child support, and alimony can’t be discharged through either type of nonbusiness bankruptcy.
The Morgan & Morgan Difference
If you’re an Alabama resident thinking about bankruptcy, it’s important you contact Morgan & Morgan. We understand what you’re going through and want to be by your side during these trying times so you and your family can successfully start over. With more than 400 attorneys nationwide, we have the resources and reach to provide you the best service possible. We pride ourselves on offering our clients full transparency regarding their case – you’ll even get 24/7 open communication with your case staff through our mobile app. Our bankruptcy attorneys are passionate about helping you make informed decisions and fighting for your best interest. Fill out a no-cost case evaluation form to schedule a consultation today.