Understanding Chapter 7 Bankruptcy in Birmingham
The decision to file for bankruptcy can be an overwhelming one. However, if debt has become a constant source of stress, filing for Chapter 7 bankruptcy might be a viable path to regaining control over your financial future.
Chapter 7 Bankruptcy: An Overview
Unlike Chapter 11 and Chapter 13 bankruptcy, Chapter 7 is often referred to as liquidation bankruptcy. Under this type, the debtor is not legally obligated to repay the debts that are discharged, offering a sigh of relief for many. In exchange, some of your property is turned over to the Chapter 7 Bankruptcy Trustee. The law, however, allows you to keep some assets as exempt, helping you to make a fresh start.
In most cases, Chapter 7 debtors have little or no equity in their homes or cars. If you can continue to make the payments, you can often keep the property you wish to retain, surrender the property you no longer want, and discharge your other debts such as credit card balances and medical bills.
Disclosing Assets and Debts
In a Chapter 7 bankruptcy filing, you must disclose all of your assets and all your debts (both good and bad) in your petition. The Chapter 7 trustee will then determine if there's any equity in your assets above the state-provided exemptions. In most cases, the trustee will abandon their interest in any of your properties due to a lack of significant equity. Simply put, there's not enough value in your belongings above what is owed to justify the court selling them for the benefit of your creditors.
According to bankruptcy law in the rare occasions where there's excessive equity in an asset, the court might sell it and distribute the funds to your creditors. Numerous factors can affect the trustee's decision to sell an asset. There are instances where the Chapter 7 Trustee will abandon his interest and allow you to keep your assets and equity. Here, the guidance of an experienced bankruptcy attorney like Cindee Dale Holmes can prove invaluable.
Navigating Personal Bankruptcy in Birmingham
Cindee views Chapter 7 bankruptcy as an opportunity for a fresh financial start. If you're having difficulty paying even the minimum on your bills, are receiving foreclosure notices about your mortgage, or have had a devastating financial setback, Cindee can guide you through the Chapter 7 process and help you get your life back on track.
The main advantage of Chapter 7 is that you emerge from bankruptcy without any future obligations on your discharged debts. However, not all debts can be discharged. Debts incurred through fraud, some tax debt, certain student loans, child support, and alimony cannot be discharged.
As soon as you file for Chapter 7 bankruptcy, your creditors are no longer allowed to attempt to collect the money you owe them. This protection is called an automatic stay. This means you can answer the phone again without worrying about collection agencies; garnishments get released; lawsuits are stopped; and the repo man can't legally take your belongings. To navigate these complex situations, contacting an experienced bankruptcy attorney like Cindee Dale Holmes is highly advised.
Filing for bankruptcy is a significant decision. Having an experienced lawyer at your side can make all the difference in the world. Take that first step towards financial freedom and regain control of your life.
