Helping Clients Overcome Personal And Legal Challenges

Overcoming Personal and Legal Challenges

Bankruptcy In Elmore County

When Elmore County residents find themselves facing overwhelming debt, they may want to consider bankruptcy as a way to reduce or eliminate that debt and get a fresh start financially. With Chapter 7 bankruptcy, individuals can liquidate assets, pay off a portion of the debt and have the remaining debts forgiven. With Chapter 13, debt is consolidated into an affordable repayment plan. The debt is gone once the monthly payments have been completed, spreading out this financial obligation over three to five years.

Either way, our experienced team of bankruptcy attorneys is here to help. At the Law Office of Jeffrey J. Courtney, LLC, our lawyers have been working hard for Alabama residents for more than three collective decades. We care deeply about our clients, have an in-depth understanding of bankruptcy law and can help you explore your options.

Pros Of Filing For Bankruptcy In Elmore County, Alabama

All situations are unique, but the following are some of the main upsides to filing for bankruptcy:

  • You get immediate relief from creditor harassment thanks to the automatic stay.
  • The automatic stay also pauses other financial cases, such as a foreclosure case, helping to buy you time if you’re worried about losing your house.
  • Protection from wage garnishment so that you are still paid your full wages.
  • An eventual debt discharge so that remaining debts are erased.
  • The ability to address numerous types of debt such as medical debt, credit card debt, car loans, etc.
  • A fresh financial start for Elmore County residents as they rebuild their credit scores and work toward a positive future.

Even if you use Chapter 7 and liquidate assets, there is the potential to keep certain assets, thanks to bankruptcy exemptions. These include:

  • The Alabama homestead exemption for your primary home.
  • A wildcard exemption you can use as you see fit.
  • A work motor vehicle exemption in Alabama, allowing you to keep your primary work vehicle so you do not lose your income.

Additionally, you may have the opportunity to restructure debts under Chapter 13 rather than liquidating assets. You can consolidate debts into a manageable plan that typically lasts for three to five years. Bankruptcy often allows you to catch up on mortgage payments so that you can keep your house, even after the stay is lifted.

There are many benefits to financial literacy, such as taking positive action to budget, rebuilding your credit score and avoiding overwhelming debt in the future. If you are interested in credit counseling and financial education, our experienced team can help you look into the local resources in Elmore County.

Cons Of Filing For Bankruptcy In Elmore County, Alabama

The main downside of bankruptcy is a negative impact on your credit score. This is why it’s so important to work with us to learn how you can rebuild your score after filing. Chapter 7 stays on your credit report for 10 years. Chapter 13, if the repayment plan is completed, stays on your credit report for seven years.

With a reduced credit score, it can be harder to obtain new credit opportunities such as credit cards, student loans, car loans, etc.

With Chapter 7, there is the potential loss of nonexempt assets. Examples of nonexempt property in Alabama bankruptcy cases include:

  • Investments
  • Excess financial assets
  • Second homes or vehicles
  • Luxury items

It is important to remember that bankruptcy goes on your public record. These records are available from the bankruptcy court in Alabama and can be found online. This can have a potential impact on:

  • Future financial opportunities
  • Employment options
  • Housing availability

You do have to cover costs associated with filing such as:

  • $338 fee for the Chapter 7 petition
  • $313 fee for Chapter 13
  • Attorney fees

It’s also important to note that you can only file for bankruptcy once every eight years for Chapter 7 and every four years for Chapter 13.

Finally, there is some social stigma around bankruptcy, though it is important to think of it as a useful legal tool. This helps to reduce personal stress rather than worrying about the perceptions of family members or the community.

Special Considerations For Elmore County Residents

The median household income for residents in Elmore is just $29,792, meaning there is the potential for debt that cannot be addressed without bankruptcy. Many people live paycheck-to-paycheck, meaning a slight disruption in earnings makes debt unaffordable. The top reasons for bankruptcy include:

  • Job loss
  • Pay reduction
  • Medical debt
  • Unexpected expenses
  • Closing a small business

Our team is ready to help residents explore their options. If you’re worried about losing assets, we can help you examine exceptions such as:

  • The $16,450 homestead exemption
  • Exceptions for essential business vehicles
  • Exemptions for necessary tools of the trade
  • A wildcard exemption for $8,225 of personal property

To determine eligibility, you may need to take a means test to see if you qualify for Chapter 7 or Chapter 13 based on income.

Alternatives To Bankruptcy In Elmore County

Other options to consider include debt consolidation, credit counseling, debt management plans and negotiating with creditors – such as a short sale to avoid foreclosure. Our experienced team can help you decide what is best for your unique situation.

When To Consider Bankruptcy In Elmore County

Bankruptcy may be the best option when unaffordable debt is holding you back. If you simply cannot pay due to job loss or a pay reduction, for instance, debt can compound due to high interest rates. To prevent it from spiraling out of control and getting much worse, it may be time to proactively eliminate that debt. While bankruptcy does affect your credit score, so does continuing to miss payments.

Call For A Consultation

Though bankruptcy does have upfront costs and can reduce your credit score temporarily, it is possible to rebuild your score and create a positive financial future without overwhelming debt. It is important to seek professional advice, so contact us online or call 334-521-1454 for a free consultation with our experienced team.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.