St. Clair County Alabama Bankruptcy Lawyers and St. Clair County Foreclosure Attorneys
How the St. Clair County Alabama bankruptcy lawyers at Law Offices of Hill, Gossett, Kemp & Hufford can assist individuals with their financial matters.
The services of bankruptcy attorneys in St. Clair County Alabama can be quite helpful during these uncertain economic times in the United States. Bankruptcy is not always a negative occurrence, and can save individuals from becoming homeless and losing their financial resources if they are filed correctly in accordance with Federal Bankruptcy laws. Events that push individuals to the brink of bankruptcy include the loss of a job, a divorce, a death in the family, a medical emergency, or some type of catastrophic event that diminishes the financial security of a person, or external events, including market downturns. St. Clair County AL Bankruptcy lawyers have formidable impact when they are contacted early on regarding financial struggles that could lead to harassment from bill collectors and other debtors.
Bankruptcy in St. Clair County Alabama.
Bankruptcy proceedings are legal actions involving a person, or business entity that is unable to repay outstanding debts, and are handled by federal courts that follow the rules of U.S. Bankruptcy Code. The bankruptcy process begins with the debtor, or a representative of creditors filing a petition with bankruptcy court. All bankruptcy cases in the United States are handled through federal courts and decisions are made by bankruptcy judges who determines debtor eligibility and debt discharges.
Allocation of debts.
St. Clair County Alabama debt relief lawyers can utilize bankruptcy options as a means to stabilize an individual’s waning financial resources. Debtor’s assets are evaluated and some assets may be used to repay a portion of outstanding debts. Bankruptcy’s purpose is to release debtors from their debts, while giving creditors the opportunity to collect partial, or full repayment. Even though bankruptcy actions stay on a person’s credit for a number of years, they allow for necessary financial relief for individuals, or businesses who are attempting to survive. Contact debt relief attorneys in St. Clair County AL to go over bankruptcy and additional options to stable diminished financial resources.
Bankruptcy and Foreclosure in St. Clair County Alabama
The common types of bankruptcy actions include Chapter 7, Chapter 11, and Chapter 13. These bankruptcy proceedings may help individuals, but it is wise to contact a bankruptcy attorney to see if there are other ways to resolve overwhelming debt. The most common advantage to filing a bankruptcy petition is that debt collectors will have to stop harassing debtors with phone calls, letters, and potential lawsuits. This action is an automatic stay, and creditors must cease actions for repossession, wage garnishment, foreclosure, and bank levies.
Foreclosure in St. Clair County AL is the legal action by a mortgage holder to recover the amount of money owed on a loan by taking ownership of a property and selling and is a pressing issue for individuals who are experiencing financial insecurity. When a homeowner hires experienced St. Clair County Alabama foreclosure attorneys, they may exercise legal options to save their home, or delay its sale. Bankruptcy may be an option to stave off foreclosure. If an individual files for bankruptcy before a foreclosure action is initiated, an automatic stay may prevent the foreclosure from moving forward. St. Clair County Alabama Foreclosure lawyers can be of assistance in utilizing bankruptcy to stall a foreclosure action.
A means test must be done to decide if an individual is eligible for Chapter 7 whereby debts will be forgiven, or Chapter 13 whereby debts are paid off monthly for a period of up to five years, if individuals fall under the median income for certain family sizes, and are not abusing the bankruptcy system. If individual income is higher than the state mandated median, a person may have to file a Chapter 13 bankruptcy action, because there is an ability to pay off incurred debt.
St. Clair County Alabama Chapter 7 bankruptcy.
Chapter 7 bankruptcy lawyers in St. Clair County AL can assist with actions to “discharge” unsecured debt within a short period of time, and most of the time individuals would still be able to keep their cars and houses. Common debt that is discharged in this type of bankruptcy includes:
- Credit card balances,
- Personal loan balances,
- Medical bills.
- IRS and state taxes in certain cases.
Individuals who file for Chapter 7 in St. Clair County Alabama will still be responsible for repaying child support and alimony, student loan debt, debts related to personal injury litigation, penalties in violation of law, and tax debts unless exception criteria are met.
St. Clair County Alabama Chapter 11 Bankruptcy.
Alabama businesses often file Chapter 11 bankruptcy, so they can reorganize, while remaining in business. Filing Chapter 11 bankruptcy allows a company to create plans for profitability, cut costs, and find additional avenues to increase revenue. Repayment plans are often set up under the court’s supervision. In rare cases, individuals can also file Chapter 11 bankruptcy in St. Clair County AL.
St. Clair County Alabama Chapter 13 Bankruptcy.
Individuals who make too much money to qualify for Chapter 7 bankruptcy may file under Chapter 13, also known as a wage earner’s plan. It allows individuals and businesses with consistent income to create workable debt repayment plans. Chapter 13 bankruptcy lawyers in St. Clair County Alabama can help develop the repayment plans which are commonly done in installments over the course of a three- to five-year period. In exchange for repaying their creditors, the courts allow debtors to keep all of their property, including nonexempt property.
The steps debtors should take as they prepare for bankruptcy include:
- constructing a master list of all individual debts and assets to assist a debtor and a knowledgeable bankruptcy attorney to make a determination of which debts an individual wants discharged, and what assets should be maintained to protect a person’s future livelihood, such as a house, or vehicle,
- avoiding application for additional lines of credit, or maximized spending on current open cards,
- limiting draws on retirement accounts as safeguarded during settlement discharges and individuals may need that protected funding later, and
- transferring assets close to the time of filing a petition because the court may discern this as an attempt to hide them.
Seek legal counsel.
Individuals should consult with Hill, Gossett, Kemp & Hufford, P.C., for questions regarding
bankruptcy law in St. Clair County Alabama to make certain they understand bankruptcy law protections for: 1) homestead; 2) insurances; 3) pensions; and 4) public benefits such as disability.
Hill, Gossett, Kemp & Hufford, P.C.
Attorneys at Law
Moody Professional Building
2603 Moody Parkway, Suite 200
Moody, Alabama 35004