Personal Bankruptcy and Restructuring
Are you facing one of the following situations:
- Foreclosure
- Repossession
- Garnishment
- Seizure
If so, you may be a candidate for a personal bankruptcy case. There are multiple forms of bankruptcy cases available to individuals.
Chapter 7
Chapter 7 is the most commonly selected option, with 381,217 cases filed in 2020, accounting for 70% of that year's bankruptcies. Despite its name, Chapter 7 is quite straightforward. The law allows for the liquidation of certain assets to pay creditors, yet nearly 96% of Chapter 7 filings are "no-asset" cases, meaning the filer has no significant property equity to be liquidated by the trustee for creditor repayment.
Typically, you will retain your property, and Chapter 7 bankruptcy proceedings (which usually last four to six months) will result in the discharge of most unsecured debts. Obligations like alimony, child support, certain taxes, property liens, and student loans (in most instances) will not be discharged. If Chapter 7 does not provide the complete relief necessary, you may file for bankruptcy again after a certain period of time. It's important to consider the advantages and disadvantages of Chapter 7 bankruptcy in comparison to Chapter 13 to determine the best option for your circumstances.
Chapter 13: Reorganization
Chapter 13 is for debtors with reliable incomes who want to keep their home or car but have fallen behind on their loan payments. Chapter 13 stops foreclosure and/or repossession actions while filers enter into a court-mandated repayment plan, which will include catching up on back payments and paying off at least a portion of their unsecured debt.
There were 154,341 Chapter 13 cases in 2020, accounting for 28% of the total bankruptcy load. Upon successful completion of the repayment plan — typically three to five years — any remaining unsecured debt (medical bills, credit cards, personal loans) may be discharged. Certain types of debts that are not discharged in Chapter 7 may be discharged in Chapter 13.
About us
Bush Law Firm and its team is dedicated to providing quality legal services to both businesses and individuals throughout the State of Alabama. With years of experience in a wide range of legal matters, including bankruptcy, business litigation, estate planning, probate, and personal injury, we are committed to offering personalized and effective legal representation. Our team of attorneys takes the time to understand the unique needs of each client, ensuring that we provide the best possible solutions. At Bush Law Firm, we pride ourselves on our professionalism, dedication, and unwavering commitment to our clients' success.
No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.