Chapter 7 Bankruptcy Attorney in Birmingham, Alabama
Keep paying home mortgage or car loan while eliminating other debts
One of the most common ways to get out of financial difficulties is by filing for Chapter 7 bankruptcy. Alabama residents who are successful at qualifying for Chapter 7 enjoy a complete elimination of eligible debt. Eligible debt includes unsecured debt, such as credit card and medical bills. With a Chapter 7 bankruptcy, you may be able to reaffirm secured debts like car loans and home mortgages, to keep those possessions and catch up on missed payments.
If you are fighting growing debt and cannot see a way to reduce it in the next couple of years, Chapter 7 bankruptcy may be an excellent option to receive a fresh financial start. Thankfully, bankruptcy lawyer Brent W. Davis focuses his legal practice on consumer debt relief. Contact our Birmingham law office to schedule an appointment.
Who Qualifies for Chapter 7 Bankruptcy?
One of the major misconceptions about consumer bankruptcy is that almost no one can qualify for Chapter 7 bankruptcy. This is not true. However, the petitioner does have to pass a so-called “means test” in order to qualify. One version of the Chapter 7 bankruptcy means test compares your income to the median income for your state and household size. If your income is lower than the state median, then you qualify for Chapter 7 bankruptcy.
If your family income is higher than the median income, however, you may still qualify for Chapter 7 bankruptcy. An experienced Chapter 7 bankruptcy attorney can analyze your finances via a more detailed means test that compares your income to your monthly expenses.
Timing is also important when filing Chapter 7 bankruptcy. For example, perhaps you do not currently qualify, but know that you will lose your job next month.
Chapter 7 Bankruptcy Compared to Chapter 13 Bankruptcy
Even if we perform every possible financial analysis and determine that you do not qualify for Chapter 7 bankruptcy, we can advise you about Chapter 13 bankruptcy. Chapter 13 bankruptcy is sometimes called debt reorganization bankruptcy. With Chapter 13 bankruptcy, you enter into a reasonable repayment plan overseen by the bankruptcy court. If you make all scheduled payments over the three to five-year repayment period, remaining unsecured debt may be eliminated.
Get Answers to Your Questions About Chapter 7 Bankruptcy
Most people considering bankruptcy have many questions. What happens to my bankruptcy if I get a divorce? Will I lose my car? Will I lose my house if I file Chapter 7 bankruptcy? Alabama residents who come to Brent W. Davis & Associates, LLC are given advice on the many ways to restructure their debt, even when going through a divorce. Get answers to these and other questions–make an appointment with a knowledgeable bankruptcy attorney at the law office of Brent W. Davis & Associates, LLC today.
We are a debt relief agency. We help people file for relief under the Bankruptcy Code.