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February 2025

Bankruptcy in Opelika: Next Steps

By Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Understanding Bankruptcy No Comments

David S. Clark, an experienced Chapter 7 & Chapter 13 bankruptcy attorney breaks down your next steps when facing bankruptcy in Opelika, AL.

Bankruptcy in Opelika is an unfortunate but not uncommon situation to find yourself in. The stress and pressure of facing financial difficulties can leave you confused and seeking guidance. Thankfully, there are next steps that you can take to set yourself up for recovery. Let’s go over the next steps you should take when facing bankruptcy in Opelika, Alabama.

Chapter 7 Bankruptcy or Chapter 13 Bankruptcy?

Before going any further, it is important to determine whether you are dealing with Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. Let’s take a look at some of the key differences between the two, helping clarify which type of bankruptcy you may be experiencing.

DISCLAIMER: The following blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.

Need Bankruptcy Help? Call David S. Clark
› Chapter 7 Bankruptcy in Opelika

One of the most common forms of bankruptcy in Opelika and across the country is Chapter 7 Bankruptcy. Essentially, Chapter 7 Bankruptcy is when all of your assets are liquidated to help pay down your debts. When declaring Chapter 7 Bankruptcy, asset liquidation helps clear unsecured debts, including credit card bills, medical bills, personal loans, and utility bills. 

Once your petition for Chapter 7 Bankruptcy is submitted, automatic stay goes into effect. Automatic stay prevents creditors from pursuing collection against you. This allows you to handle your bankruptcy in peace without dealing with incessant calls, emails, and lawsuits seeking money.

› Chapter 13 Bankruptcy in Opelika

The other most common form of bankruptcy in Opelika and across the country is Chapter 13 Bankruptcy. Chapter 13 Bankruptcy is different from Chapter 7 Bankruptcy because of the debt repayment process. Unlike in Chapter 7 Bankruptcy, not all of your assets are liquidated during Chapter 13 Bankruptcy. Common practice is for a court to develop a debt repayment plan, which outlines a timeline for you to repay your debts over time. These repayment plans are typically outlined for 3 or 5 years.

With a Chapter 13 Bankruptcy repayment plan in Opelika, you will make monthly payments to a trustee who distributes the funds to creditors accordingly. The benefit of Chapter 13 Bankruptcy is that you are able to keep some of your assets throughout the process, including a home or a car. This can put you in a better position to pay off debts by improving access to employment opportunities that can help you pay down these debts.

Seeking Professional Legal Advice in Opelika

When you are considering declaring bankruptcy in Opelika, it is absolutely crucial to consult with an experienced legal professional. Bankruptcy is not something to be entered into lightly, and by consulting with a Bankruptcy attorney in Opelika, you can get trusted advice to ensure you are taking the best possible next steps for you and your family. Thankfully, if you are experiencing a financial crisis in Opelika, there are caring and experienced legal professionals who can help you through this difficult and stressful time.

David S. Clark: Opelika’s Trusted Bankruptcy Attorney

In Opelika, the trusted and professional authority on Chapter 7 and Chapter 13 Bankruptcy is David S. Clark. David and his team of legal professionals are committed to helping the Opelika community when they fall on hard times. We can analyze your unique situation and give professional legal advice that is in your best interest. Our goal is to help get you back on your feet financially, and bankruptcy can be a necessary tool to help you do so in Opelika. 

If you’d like to speak with David and get professional advice on your current financial situation, please don’t hesitate to contact us. We offer free consultations to help you decide your best next step towards financial recovery. Give us a call today to see if we can help you get back on your feet!

DISCLAIMER: The above blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.