August 2025

Bankruptcy is not something most people expect to face in their lifetime. Yet in Alabama, thousands of individuals and families file for bankruptcy every year. Reasons for filing may vary, but the result is always a financial situation that has spiraled out of control. 

While the word “bankruptcy” can feel intimidating, it is essential to remember that it’s a legal tool created to protect people when their finances collapse. As an Opelika bankruptcy lawyer, David S. Clark has seen how the right approach to personal bankruptcy can stop the chaos, protect your assets, and give you a chance to rebuild.  Although every bankruptcy case is different, three causes of bankruptcy show up again and again across Alabama. 

Medical Debt 

Unexpected medical bills are one of the leading causes for filing Chapter 7 bankruptcy and Chapter 13 bankruptcy in the state. Even with insurance, a major surgery, prolonged illness, or emergency care can leave you with tens of thousands of dollars in debt.

For some, the problem is not just the medical bills but the loss of income that comes with time away from work. The combination of reduced earnings and increased expenses can quickly lead to missed credit card payments, collections, and lawsuits. Many people turn to personal bankruptcy to stop medical creditors, wipe out unsecured debt, and regain financial stability. 

Job Loss or Reduced Income 

When a steady paycheck suddenly disappears, most households can only cover expenses for a short time before falling behind. Layoffs, reduced hours, and business closures have left many Alabamians struggling to keep up with their mortgage payments, car loans, and credit card bills. 

In these situations, Chapter 13 bankruptcy can be a powerful tool. It works by allowing individuals to restructure debt into one manageable monthly payment while keeping essential assets like a home or vehicle. For those with little to no income, Chapter 7 bankruptcy may be the better fit, offering a faster discharge of unsecured debt. An experienced bankruptcy attorney like David S. Clark can help you determine which option makes the most sense for your financial situation. 

Credit Card Debt 

Credit cards are incredibly convenient, but they can also easily become a trap when interest rates and fees start to pile up. A few missed payments can lead to penalty rates, and before long, the minimum payment barely touches the actual balance, or principal.  

Many people use credit cards to make ends meet after a job loss or medical emergency, only to find themselves deeper in debt. Chapter 7 bankruptcy can eliminate most credit card balances, while Chapter 13 bankruptcy can freeze interest and consolidate debt into a structured repayment plan. In either case, filing for bankruptcy with the help of an Opelika bankruptcy lawyer provides immediate financial relief through the automatic stay, which stops collection calls, lawsuits, and wage garnishments.  

Taking the Next Steps 

Bankruptcy is not about giving up. It’s about using the law to protect your financial future. Whether you are facing overwhelming medical bills, loss of income, or unmanageable credit card debt, speaking with an experienced bankruptcy attorney is the best way to understand your options and protect your assets. 

David S. Clark has helped countless Alabama residents navigate personal bankruptcy by guiding them through the process with expertise. Whether you qualify for Chapter 7 bankruptcy or need the structure of Chapter 13 bankruptcy, you can take the first step towards financial relief by scheduling a consultation. 

If financial stress is taking over your life, you do not have to go through it alone. Contact Opelika bankruptcy lawyer David S. Clark today to find out how bankruptcy can give you a fresh financial start today. 

Below is a quick breakdown on a major question Opelika residents may have: Can Credit Card Debt Cause Bankruptcy?

Credit cards are a helpful tool until they’re not. For many people in Opelika, a few charges here and there can turn into overwhelming debt. You miss one payment, the interest starts compounding, and suddenly, it feels like you’re using one card to pay off another. It’s a cycle that can feel impossible to escape.  

Why Credit Card Debt Often Leads to Personal Bankruptcy

At a certain point, credit card debt stops being a financial inconvenience and starts becoming a serious threat to your financial stability. That’s why many individuals start exploring personal bankruptcy as a way to press reset. And for good reason. Working with a trusted Opelika bankruptcy lawyer like David S. Clark can be the first step in getting your life and finances back on track. 

When you’re living paycheck to paycheck and just barely making the minimum payments, it may not feel like you’re in crisis yet. But high interest rates, late fees, and everyday expenses can pile up faster than most people realize. Even responsible spenders can find themselves in a tight spot when unexpected life events like a job loss, illness, or emergency home repairs force them to rely more on credit. Before long, you’re looking at multiple maxed-out cards, stress that won’t stop, and no clear way out.     

And here’s the truth: yes, credit card debt absolutely can cause bankruptcy. But filing doesn’t mean you failed. It means you’re choosing a legal path forward. It’s a chance to wipe the slate clean or restructure your finances under court protection with the help of a skilled bankruptcy attorney. For many in the area, David S. Clark, a leading bankruptcy attorney in Opelika, is the one they turn to for answers.

Chapter 7 Bankruptcy vs. Chapter 13 Bankruptcy

There are two main types of personal bankruptcy that individuals typically file.

Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 bankruptcy is often referred to as “liquidation bankruptcy.” It wipes out most unsecured debts, including credit cards, medical bills, and personal loans, and is usually resolved in a matter of months. But not everyone qualifies. You’ll need to pass a means test to show that your income falls below a certain level. That’s why speaking with an experienced Opelika bankruptcy lawyer is so important.

Chapter 13 bankruptcy, on the other hand, is better for those with regular income who want to avoid losing valuable assets like a home or car. Rather than eliminating debt right away, Chapter 13 bankruptcy creates a three-to-five-year repayment plan, allowing you to consolidate debts into one manageable monthly payment. This option is ideal if you’ve fallen behind on mortgage or car payments and want to catch up while also stopping credit card interest from increasing. David S. Clark, a trusted Opelika bankruptcy lawyer, helps clients understand which option best fits their situation.

Signs You May Be Headed Toward Bankruptcy

So, how do you know if it’s time to take that step? Here are a few signs that credit card debt may be leading you toward personal bankruptcy: you’re using new credit to pay off old balances, your debt is growing faster than you can pay it down, collection agencies are calling, and the stress is affecting your health or personal relationships. If any of this sounds familiar, you’re not alone. And you’re not out of options. David S. Clark can help you understand what’s next.

Bankruptcy laws were written to protect people just like you. Filing for personal bankruptcy isn’t about giving up. It’s about regaining control. The financial system is complicated, and sometimes the smartest, most strategic thing you can do is hit pause, reset, and come back stronger. An experienced Opelika bankruptcy lawyer can help you do that. 

Why Working With an Opelika Bankruptcy Lawyer Matters

Working with bankruptcy attorney David S. Clark gives you clarity and confidence. You’ll get an honest, straightforward assessment of your situation, understand your rights, and learn how to protect the things that matter most to you. Whether you qualify for Chapter 7 bankruptcy or need a structured Chapter 13 Bankruptcy plan, the goal is the same: to help you breathe again, stop the financial chaos, and start rebuilding. 

If a credit card has taken over your life, don’t wait until the collectors are at your door or your wages are being garnished. Talk to someone who understands the law, the process, and what you’re going through. David S. Clark, a trusted bankruptcy attorney and reliable Opelika bankruptcy lawyer, is here to help Alabama residents find lasting debt relief and peace of mind.