Birmingham Chapter 7 Bankruptcy
More Americans file for Chapter 7 bankruptcy than any other type of bankruptcy, but the important question is—is Chapter 7 right for you?
Birmingham bankruptcy attorney S. Scott Allums has spent years advising people on the right decisions for their financial problems and can help you overcome insurmountable debt. Birmingham Chapter 7 bankruptcy is not right for everyone, but when it suits your situation, it can provide considerable relief.
End harassing phone calls
It is a relief to have the harassing phone calls, demand letters, and threat of creditor lawsuits end. When you file for Birmingham Chapter 7 bankruptcy, an automatic stay immediately goes into effect which stops creditor collection and legal actions.
Eligibility for filing under Chapter 7
The rules for filing under Chapter 7 changed in 2005 when Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), which made income an eligibility factor for filing under Chapter 7. Debtors must pass a means test that compares their income with the median income in Alabama. If your income is greater than the median, it is subject to further calculations. Despite stiffer qualifications, many individuals who find themselves in serious debt still qualify for Chapter 7 bankruptcy, and are in need of assistance from an experienced bankruptcy law firm.
Liquidation bankruptcy
Chapter 7 bankruptcy is referred to as 'liquidation bankruptcy' because the trustee takes your non-exempt assets, sells them at a public auction, and uses the proceeds to pay off your debts. For persons with few assets and high unsecured debt such as credit card debt, medical bills, and personal loans, filing under Chapter 7 in Birmingham can solve their financial problems. Even individuals with homes and cars may be able to reaffirm these debts, make payments, and keep their possessions, while at the same time eliminating unsecured debt.
Quickly putting debt behind you
A Birmingham Chapter 7 bankruptcy usually finalizes quickly, generally taking only about four months. You can leave debt behind you and get a fresh start. This means there is a shorter runway to re-establishing credit than with the three to five years it takes for discharge in a Chapter 13 bankruptcy. Granted, no bankruptcy is good for your credit. But if you are overwhelmed by debt, chances are that your credit may already be ruined and you need to put an end to your financial demise.
Find out about filing for Chapter 7 bankruptcy in Birmingham
Contact S. Scott Allums, P.C. online or call 877-770-6288 to find out whether you should file under Chapter 7.
