Alabama Chapter 7 Bankruptcy Lawyers
Helping Distressed Debtors Get a Fresh Start
You are likely familiar with the word “bankruptcy,” but you may not know exactly what it means, how it is done, and what to expect when going through the process. For anyone who is in a position of runaway debt, getting correct information and an understanding of how bankruptcy will affect you, it is vital to seek trusted legal help. At The Gil Law Firm, our Dothan Chapter 7 bankruptcy attorneys have been assisting clients with bankruptcy and debt relief options for more than 20 years. Our client base includes individuals throughout Alabama, Georgia, and Florida.
Why Choose The Gil Law Firm?
We are well-versed in the state and federal laws regarding the various types of bankruptcy available to you, whether you are an individual or a business. We can provide counsel on many debt relief programs as we take into consideration your unique financial circumstances, needs, and objectives. Throughout it all, we will provide knowledgeable, caring, and proven legal representation so that you can move forward with confidence into a better financial tomorrow.
Arrange for a free, initial consultation with a Dothan Chapter 7 bankruptcy attorney at (334) 401-4420 or through our online request form.
What is a Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is the most common form of bankruptcy filing in the U.S. It is known as “straight” bankruptcy or “liquidation” bankruptcy. Under this form of bankruptcy, your unsecured debt is generally discharged after any property or assets that are subject to bankruptcy are liquidated to pay off your creditors. For most people who want to eliminate their heavy unsecured debt, Chapter 7 provides a viable choice, giving you a fresh start with a clean slate once your case has been closed.
In a Chapter 7 bankruptcy, a trustee is named who will pay your creditors off with whatever is available after the liquidation of any property. Once you file, your creditors are subject to an automatic stay, meaning that they can no longer contact you in any way to collect on your debt. They can only go through the bankruptcy court. This effectively ends creditor harassment of all kinds, from collection letters and phone calls to wage garnishment.
Chapter bankruptcy is an attractive way to eliminate unsecured debt such as:
- Credit card debt
- Payday loans
- Medical and dental bills
- Department store debt
- Gas card debt
- Personal loans
- Back rent
- Unpaid utility bills
Certain debts cannot be paid off through the bankruptcy court, such as child support payments, alimony, student loans, certain taxes, and other specific debt. If you wish to keep secured property, such as your home, vehicle, and furniture, you will likely have to reaffirm these debts and continue to pay them through what is known as a “reaffirmation agreement.”
Eligibility Requirements for Chapter 7 Bankruptcy
To protect the system from abuse, those who wish to file for a Chapter 7 are subject to certain qualifications. You cannot file for a new bankruptcy if you completed a Chapter 7 within the last eight years. You are also required to undergo credit counseling through an authorized agency within six months of filing. A final requirement is to pass a “means test.” Under this test, your average monthly disposable income must fall below that of the median for your state after deducting all of your allowable expenses.
Reach out to a Dothan Chapter 7 bankruptcy lawyer at (334) 401-4420 for the help you need today.
Consult with a Knowledgeable Attorney at The Gil Law Firm
Most people seeking a Chapter 7 bankruptcy qualify for one. For those who do not, other options remain available. You can sit down with one of our knowledgeable bankruptcy attorneys to thoroughly go over your financial situation to determine if you qualify, to learn more about how the process works, and to get a better understanding of what the consequences of this process will be in terms of benefits and downside. For most people who are in a hopeless debt situation, a Chapter 7 will give you the fresh start you need to rebuild your future.
