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Jan 30
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How to Rebuild Your Credit After Bankruptcy

By Financial Tips No Comments

Life after bankruptcy is like a reset, but getting everything back on track is not instant. You may have a fresh new financial start, but your credit score likely took a hit along the way. This part may feel discouraging. There is good news, though. Rebuilding your credit after bankruptcy is possible, and many Auburn or Opelika residents fully recover with time and consistency. 

Here are some financial tips from David S. Clark, an experienced Auburn and Opelika bankruptcy attorney, on how to improve your credit score after filing for bankruptcy. 

Start by Understanding Your Credit 

The first step to rebuilding your credit is knowing what your credit score actually represents. Your score is a reflection of how lenders view your trustworthiness with borrowed money. It is based on things like payment history, total debt, credit usage, and how long you have used your credit. 

After personal bankruptcy, it is important to take an honest look at your finances. Knowing what landed you in your past financial situations will help you avoid repeating the same mistakes. Awareness plays a big role in rebuilding your credit. 

An Opelika bankruptcy lawyer can also help you understand the effect bankruptcy has on your credit and what to expect in the future. 

Review Your Credit Report 

Once your bankruptcy case is complete, request your credit reports and review them closely. Credit reports are created by multiple reporting agencies, and information can vary between them. 

Errors happen. Your accounts may show incorrect balances or fail to show discharged debts. These mistakes can unfairly lower your score if they aren’t handled. 

A qualified bankruptcy attorney like David S. Clark can help you review your report and guide you through disputing inaccurate information if needed. 

Apply For New Credit 

After chapter 7 bankruptcy or chapter 13 bankruptcy, you may be cautious of opening new lines of credit. This is normal. However, using new credit responsibly is part of the rebuilding process. 

 

It may be difficult to get approved at first, and interest rates may be higher. This is to be expected. The goal is not to borrow too much at once. You are trying to show consistent, responsible use over time. 

Even small credit lines can help you show credit lenders progress when managed correctly. 

Make Payments On Time

Now that you have new lines of credit, you will need to prove that you are responsible with them. Pay bills on or before their due dates whenever possible. By doing this, you will avoid late fees and build credibility with your lender. 

Keep Balances Low 

Using only a small amount of your available credit improves your utilization, which lenders view as a positive. This factor is important when lenders are assessing your eligibility for new lines of credit, and especially when evaluating your credit score. 

Keeping balances low helps show you are not relying too heavily on credit and that you can manage it responsibly after personal bankruptcy. 

David S. Clark, A Local Bankruptcy Attorney

David S. Clark is an experienced bankruptcy attorney who understands the complications of life after bankruptcy. If you need help navigating Chapter 7 or 13 bankruptcy, contact David S. Clark today!

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.

Jan 30
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How Filing Bankruptcy Can Pause a Car Repossession

By Financial Tips No Comments

If you have missed a few car payments, you may begin to worry about the loan company repossessing your vehicle. This stress and worry often lead people to hide their cars, avoid phone calls from loan companies, and keep their vehicles hidden in hopes of catching up before it’s too late. 

The harsh reality is that loan companies have more tools working in their favor than most people realize. Many can track vehicles through GPS trackers. Some also have the ability to keep you from starting your car entirely through the use of starter interrupter devices. 

Trying to avoid repossession can quickly feel like a losing battle when you’re up against these tools.

For many debtors, personal bankruptcy offers legal protection from loan companies so that their vehicle and other property cannot be repossessed, at least until the case is settled. 

What Happens When You File for Bankruptcy

Many complaints from debtors about loan companies and repossessors are about the overly aggressive and demanding nature of their attempts to repossess a vehicle. When you file for chapter 7 bankruptcy or chapter 13 bankruptcy, the court issues something called an automatic stay. This stay immediately stops most collections, including vehicle repossession. 

Once the stay is in place, loan companies are no longer allowed to demand your car or attempt to repossess it. Phone calls, threats, and repossession attempts must stop while your case is active. 

To put it plainly, filing bankruptcy puts the law on your side. 

How an Automatic Stay Protects Your Vehicle 

The automatic stay exists to give people time to work through their financial situation without the constant pressure and hounding from creditors. For many, this break alone brings a moment of relief. Instead of worrying about losing your vehicle, you now have time to make informed decisions with guidance from a bankruptcy attorney. 

An experienced Opelika bankruptcy lawyer can help you understand more about how the stay applies to your specific situation and your options moving forward. 

Is This Protection Permanent

The automatic stay that comes when you file for bankruptcy can stop a repossession, but it is not always permanent. It is meant to give you time. This time allows you to take a step back, understand your options, and work through your debt without the constant pressure of repossession attempts. 

Because the stay is temporary, there is still a chance that you may have to give up your vehicle by the end of the case. That depends on your financial situation and the type of bankruptcy you file for. 

However, bankruptcy gives you a real opportunity to protect your car. It also gives you legal protection from harassment or intimidation by loan companies while your case is active. 

David S. Clark, An Auburn & Opelika Bankruptcy Attorney

David S. Clark and his team have been helping Auburn and Opelika, AL residents avoid repossession through bankruptcy for years and have the experience necessary to advocate your case before a bankruptcy court and in the face of intimidating loan companies.

If you are facing repossession in Auburn or Opelika and are considering filing for Chapter 7 or Chapter 13 bankruptcy, contact David S. Clark today.

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.

Dec 31
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Bankruptcy: A Fresh Start for 2026

By Financial Tips No Comments

The new year always has a way of making people stop and reflect. We often think about what we want to change and what we want to leave behind. For many Opelika residents, finances sit at the top of that list each year. Debt is challenging, stressful, and difficult to ignore, and the pressure to get your finances back on track only intensifies as time passes. 

If you are starting 2026 feeling overwhelmed by debt, bankruptcy may be your answer. It is not an easy decision, but for most people it creates a sense of relief. Bankruptcy exists to provide people with a financial reset when other options are no longer feasible. 

David S. Clark is an Opelika bankruptcy attorney who works with people every day who feel stuck in their current financial situation and don’t know what to do next. The goal of bankruptcy is a fresh start, not a punishment. 

How Bankruptcy Can Help You Reset in The New Year 

Most people don’t just end up in debt because of one bad choice. It usually comes from several things happening at once, like the loss of a job, medical bills, housing costs, and trying to keep up when your income doesn’t stretch far enough. All of these situations are common. They are even more common during periods of economic uncertainty. 

One option many people look into is Chapter 7 bankruptcy. This is a type of personal bankruptcy that allows qualifying people to clear their unsecured debts. This often includes credit cards, medical bills, and personal loans. For many people, Chapter 7 bankruptcy creates immediate room to breathe and restart. 

Not all debts can be erased, though. Child support, alimony, and most student loans typically remain. Knowing what applies to your situation matters, which is why speaking with a trusted bankruptcy attorney is important. 

Life After Bankruptcy

One of the biggest questions people ask is what happens after they file for bankruptcy. The answer is simple. Life continues. The only difference is that the stress of unmanageable debt lessens. 

Rebuilding takes time, which is completely normal. Most people start small by creating a simple budget or tracking their spending more closely. Preparing for the unexpected also helps. Setting aside a small amount each month can make a huge difference. Taking these steps leads to a more stable financial future. 

Moving Forward in 2026

If debt has completely taken over your day-to-day life, it may be time to start exploring your options. David S. Clark is a trusted and experienced Opelika bankruptcy attorney who helps people understand whether Chapter 7 bankruptcy, Chapter 13 bankruptcy, or another solution best fits their situation. 

If you are considering bankruptcy in 2026, contact David S. Clark to discuss your options and take the first step toward a fresh start. 

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.

Dec 31
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Smart Financial Habits to Avoid Bankruptcy in Opelika

By Financial Tips No Comments

For most people, financial stress builds slowly through everyday decisions and unexpected expenses. While some situations are out of anyone’s control, many people who later file for personal bankruptcy wish they had changed their financial habits sooner. 

As an Opelika bankruptcy lawyer, David S. Clark often works with people after their debt has already become overwhelming. But understanding how your credit, loans, and spending habits affect your long-term financial stability can help you avoid reaching that point completely. 

Be Intentional With Credit 

Using credit is not a bad thing. In most cases, it’s honestly necessary. Things like mortgages, car loans, and other large, unexpected purchases are common examples of using credit responsibly. Problems tend to start when credit is used for everyday purchases with no real plan on how to pay it back. 

Small purchases add up more quickly than you may realize, and interest on credit doubles that financial burden. Over time, as credit balances grow and minimum payments increase, it becomes harder to catch up. Many people who end up consulting a bankruptcy attorney tell us their debt didn’t start with one big decision, but with repeated credit use that slowly became unmanageable. 

A good rule of thumb is simple. If there is no realistic plan to pay off a purchase within a reasonable amount of time, using credit may cause more stress in the long run than it solves. 

Why Quick Loans Make Things Worse 

When money is tight and bills become due, payday loans and other quick-cash options can feel like a lifeline. These loans, however, often come with an incredibly high interest rate and short repayment windows that put borrowers in an even more difficult financial position. 

Many people who consider Chapter 7 bankruptcy or Chapter 13 bankruptcy say that these short term high-interest-rate loans played a role in their financial situation. What may have started as a temporary fix often turns into a cycle that’s hard to break. 

If possible, avoid payday and title loans entirely. These quick loan options put people in a bad spot, and simply staying away from them will prevent the risk of falling behind in their personal finances. 

Safer Options When Money Is Tight 

When unexpected expenses come up, and they will, there may be a safer option than taking on more debt. Community organizations, churches, and local nonprofits often help with essentials like groceries and paying rent. 

Some people also look into short-term work or gig opportunities to cover immediate expenses without adding interest or repayment stress. Borrowing from trusted family members, when done responsibly, can also be an alternative to high-risk loans. 

These options may not be ideal, but they often cause less damage to your personal finances and give you the temporary financial relief you need without putting you in a bad spot in the long run. 

Getting Help When You Need It

If your financial stress has reached a point where the solutions feel limited, speaking with a trusted Opelika bankruptcy lawyer can provide clarity and relief. David S. Clark works with clients throughout the bankruptcy process, helping them understand their options and take the next step with confidence. Sometimes the most responsible financial decision is asking for help. For a free case consultation, contact David S. Clark, Attorney at Law, today!

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.

Nov 24
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Facing Foreclosure? Consider Filing for Bankruptcy 

By Bankruptcy Law, Financial Tips No Comments

Learn how Chapter 7 and Chapter 13 bankruptcy can help stop foreclosure in Opelika & Auburn, Alabama.

Falling behind on your mortgage can happen faster than you might think. Maybe you lost a job, had unexpected medical bills, or your income just doesn’t stretch as far as it used to. Whatever the reason, facing foreclosure can feel terrifying and overwhelming. The good news is that you still have options. 

Filing for bankruptcy can give you the breathing room you need to regain control of your finances and protect your home. At David S. Clark, Attorney at Law, we have helped families in Opelika and across East Alabama understand how Chapter 7 bankruptcy and Chapter 13 bankruptcy can stop foreclosure and create a realistic path forward. 

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

How Bankruptcy Stops Foreclosure

When you file for bankruptcy, the “automatic stay” goes into effect. This is a legal protection that stops foreclosure immediately. It also pauses creditor calls, repossessions, and wage garnishments. 

For many homeowners, this is a crucial time. It gives you a chance to catch your breath, talk with your trusted bankruptcy attorney, and figure out the best way to keep your home. 

Chapter 13 Bankruptcy

If you are behind on your mortgage but want to stay in your home, Chapter 13 bankruptcy might be the right choice for you. This type of personal bankruptcy lets you get set up with a repayment plan that lasts three to five years. With this plan, you will make manageable monthly payments that include your past due mortgage amounts. 

At the end of your plan, you will be current on your mortgage and can continue making normal payments. This is one of the most effective ways to stop foreclosure and avoid losing your home. 

Working with an experienced local bankruptcy attorney makes this process much smoother. They know how local courts and lenders handle these cases and can guide you through each step with confidence. 

Chapter 7 Bankruptcy

In some cases, Chapter 7 bankruptcy can also help homeowners who are facing foreclosure. This type of filing can erase other debts, like credit cards ot medical bills, which can help free up money to put toward your mortgage. 

While Chapter 7 bankruptcy does not always stop foreclosure permanently, it can delay the process long enough for you to look into other solutions. An Opelika bankruptcy lawyer can help you understand which option fits your specific situation. 

Working with a Local Bankruptcy Attorney 

Choosing a local bankruptcy attorney allows you to work with someone who understands the laws and your community. They know the lenders, the local economy, and the specific challenges families in Opelika face. 

At David S. Clark, we meet clients exactly where they are. We explain your rights in plain language so you will always know what’s happening and what to expect next. 

Talk with an Opelika Bankruptcy Lawyer Today 

Foreclosure can make you feel powerless, but you have more control than you may realize. Filing for personal bankruptcy is not a sign of failure. It is a legal tool designed to help people get back on track.

If you’re facing foreclosure or struggling to make mortgage payments, talk with an experienced Opelika bankruptcy lawyer before it’s too late. David S. Clark has helped families in Opelika find stability through Chapter 7 bankruptcy and Chapter 13 bankruptcy. 

Contact David S. Clark today to schedule a consultation with a trusted bankruptcy attorney and learn more about how personal bankruptcy can give you the time and space you need to save your home and rebuild your future. 

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.

Nov 24
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The Benefit of a Personal Bankruptcy Attorney 

By Bankruptcy Law No Comments

Learn about the benefit of a local personal bankruptcy attorney in Auburn & Opelika.

Deciding to file for bankruptcy is never easy. It can feel overwhelming, stressful, confusing, and even a little intimidating. The good news is that you do not have to face it alone. Working with a local bankruptcy attorney can make a hard situation easier to understand and manage. 

At David S. Clark, Attorney at Law, we help people in Opelika and across East Alabama find financial relief through Chapter 7 bankruptcy and Chapter 13 bankruptcy. Here are a few reasons why choosing someone local makes all the difference. 

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

They Know How the Local Courts Work 

The federal court handles bankruptcy, but every district runs a little differently. A local bankruptcy attorney knows the judges, trustees, and court staff in your area. They understand how the process works in Opelika and what the court’s expectations are. 

That kind of knowledge helps you avoid costly delays and mistakes. When you work with an Opelika bankruptcy lawyer, you are working with someone who already understands how to make your case move smoothly from start to finish. 

You Can Talk to Your Attorney 

Working with a local bankruptcy attorney means you and your case get personal advice. You don’t have to wait weeks for a callback ot explain your story to a new person each time. You can sit down face-to-face and talk through your concerns. 

When you’re dealing with personal bankruptcy, that connection matters. It’s easier to open up when your lawyer understands things like the job market and cost of living in Opelika.

They Understand Your Situation 

A bankruptcy attorney from outside the area might know the law, but they won’t always know your reality. A local bankruptcy lawyer understands what challenges people in East Alabama face every day. 

They can help you choose the best path for your situation. Maybe Chapter 7 bankruptcy will give you a clean financial slate, or maybe Chapter 13 bankruptcy will help you catch up and keep your home. Having someone who knows both the law and the local economy makes all the difference. 

You Get Ongoing Support 

Bankruptcy doesn’t end when the paperwork is done. Rebuilding your finances takes time and patience. A local bankruptcy attorney is there when you need guidance after your case is closed. 

At David S. Clark, many of our clients come back for advice on rebuilding their credit, budgeting, or planning for their future. We’re here to help long after your case is over because we see you as more than just a file. Having someone local on your side means having someone who cares about your outcome. We live here too. We know the community and want to see it thrive.

Talk with an Opelika Bankruptcy Lawyer You Can Trust 

If you’re considering Chapter 7 bankruptcy or Chapter 13 bankruptcy, take the time to talk with someone local. David S. Clark, an experienced Opelika bankruptcy lawyer, has helped individuals and families across East Alabama find peace of mind through personal bankruptcy. 

You don’t have to face this alone. Contact David S. Clark today to meet with a trusted bankruptcy attorney who can guide you through each step and help you start rebuilding your financial future. 

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.

Oct 21
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Will Everyone Know If I File for Bankruptcy?

By Bankruptcy Law, Financial Tips No Comments

A quick breakdown on personal bankruptcy, and who really finds out about it.

For many people in Auburn and Opelika, one of the most difficult aspects of considering personal bankruptcy is the fear of others finding out. Filing for personal bankruptcy is a private decision, and most people do not want friends, family, or coworkers to know about their financial struggles. The truth is that while bankruptcy is technically a public record, it is not something most people will ever encounter or become aware of. 

If you are considering Chapter 7 bankruptcy or Chapter 13 bankruptcy, here’s what you should know about who actually finds out. 

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

Bankruptcy Is Public, But It Is Not Publicized 

Personal bankruptcy filings are public records. They are filed through federal bankruptcy courts and can technically be searched up. But that does not mean the information is shared publicly or published anywhere most people would look. 

You won’t see your name in the newspaper or on social media unless a social media outlet is specifically reporting on bankruptcy cases, which is extremely rare and not likely. Most people who file do so quietly, and no one outside of their immediate circle ever knows. 

Who Is Notified

When you file for bankruptcy, the court does notify certain parties. These can include:

  • Your creditors, so they know to stop contacting you or attempting to collect. 
  • The bankruptcy trustee assigned to your case. 
  • The court that is handling your filing. 

If you hire a bankruptcy attorney, they handle all of this communication for you. Friends, neighbors, and employers are not notified unless your wages are being garnished and your employer needs to know to stop the garnishment. Even then, it is all handled privately. 

What About Credit Reports?

A Chapter 7 bankruptcy will stay on your credit report for up to ten years. A Chapter 13 bankruptcy will stay for up to seven years. That means lenders will see it if you apply for loans or credit cards. But outside of financial institutions, no one has access to that information. 

It is not visible to your friends, family, or coworkers. Your personal finances remain private unless you make the decision to share them. 

How a Bankruptcy Attorney Can Help Protect Your Privacy

An experienced bankruptcy attorney understands how personal this process is. They handle the paperwork, court communication, and calls from creditors so you can focus on moving forward. Working with a local Opelika bankruptcy lawyer also gives you peace of mind that your case is being handled correctly and with the most discretion.

Your lawyer will guide you through the process, explain what information is public, and help you understand the steps for rebuilding your financial situation after filing. 

Bankruptcy Is More Common Than You Think 

It might surprise you to know how many people file for personal bankruptcy each year. Many are hardworking families, small business owners, and individuals who experienced unexpected financial setbacks like medical bills or the loss of a job. Filing for personal bankruptcy does not mean failure. It is a legal way to get back on track and regain control of your finances. 

Most people who file keep their privacy, rebuild their credit, and move on to a better financial future. 

Talk with David S. Clark – Your Bankruptcy Attorney in Opelika, Alabama

If you are worried about privacy or unsure what filing for bankruptcy means for you, it helps to talk to someone who knows the process. David S. Clark, an Opelika bankruptcy lawyer, has helped many individuals and families find financial relief through Chapter 7 bankruptcy and Chapter 13 bankruptcy. 

Contact our office today to schedule a consultation with a trusted bankruptcy attorney in Opelika, Alabama, and take the first step toward financial peace of mind. 

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.

Sep 29
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Do I Need a Lawyer to File Chapter 7 or 13 Bankruptcy?

By Bankruptcy Law, Financial Tips No Comments

Does Bankruptcy really require a lawyer? Below is a quick breakdown.

Filing for personal bankruptcy is never an easy decision. If you are buried in debt, you may be wondering if you need a lawyer or if you can try to handle it on your own. The court will allow you to file without a lawyer, but that doesn’t mean it is the best choice. Bankruptcy is a legal process with many complex steps. Even one mistake can cause delays or cost you money. Ultimately, having an experienced bankruptcy attorney working by your side can make all the difference between frustration and relief. 

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

The Two Main Chapters of Personal Bankruptcy

Most individuals file either Chapter 7 bankruptcy or Chapter 13 bankruptcy. 

Chapter 7 bankruptcy clears away many different types of unsecured debt, such as credit cards and medical bills. It is usually the quicker option, but it can sometimes involve selling some of your property to repay creditors. 

Chapter 13 bankruptcy is different. Instead of clearing debts out all at once, it sets up a repayment plan that can last anywhere from three to five years. Many people choose this option if they want to keep their home, car, or other assets while working toward paying down their debt. 

Both options give you a fresh start, but each comes with its own strict rules, paperwork, and court hearings. Choosing the right one for your financial situation can be difficult without the help of a dedicated bankruptcy lawyer. 

Why Filing Bankruptcy Alone Can Be Difficult

Filing for bankruptcy might sound simple until you see what is required. You have to list every debt you owe, all your property, your income, and your expenses. Everything has to be complete and accurate. If you file under the wrong chapter, forget to include an account, or miss a deadline, your case could be dismissed. 

It is possible to file on your own, but many people who try end up feeling overwhelmed. What started as an attempt to save money often turns into a stressful, confusing process. That is why so many people choose to work with a local Opelika bankruptcy lawyer like David S. Clark. 

How a Bankruptcy Attorney Helps 

A bankruptcy attorney is more than just someone who files paperwork. They help you decide whether Chapter 7 bankruptcy or Chapter 13 bankruptcy is the better fit for your financial situation. They explain what property Alabama laws allow you to keep. They prepare and file your paperwork correctly so you don’t have to worry about costly errors. 

A lawyer also represents you in court and deals directly with creditors. Having someone experienced on your side during this process takes the stress off your shoulders and gives you confidence that everything is being handled the right way. 

The Value of Local Experience

Bankruptcy laws are federal, but most cases are handled in local courts. A lawyer who practices in Opelika understands how things work here. They know what judges expect and how cases are reviewed. That kind of local knowledge and expertise is something you just can’t get from online forms or general guides. Working with a local bankruptcy lawyer in Opelika gives you the best chance of getting through the process smoothly. 

So, Do You Really Need a Lawyer?

You can file for bankruptcy without one, but that does not mean it is a good idea. Bankruptcy affects your finances for many years to come. Having an experienced lawyer ensures you get the best possible outcome and avoid mistakes that could make things worse. Most people find that the peace of mind alone is worth it. 

Talk with David S. Clark in Opelika Today!

If you are considering personal bankruptcy, you do not have to face it alone. David S. Clark, an Opelika bankruptcy lawyer, has years of experience helping people get through both Chapter 7 bankruptcy and Chapter 13 bankruptcy. He knows the process, understands Alabama law, and is committed to helping you take some of the financial burden off your shoulders. 

Call today to schedule a consultation with David S. Clark, a trusted bankruptcy attorney in Opelika, AL, and take the first step toward a fresh financial future. 

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.

Sep 29
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What Debts Can Be Discharged in Chapter 7 Bankruptcy?

By Chapter 7 Bankruptcy No Comments

A breakdown of Chapter 7 bankruptcy and what debts can be discharged.

If you are covered up in debt, you might be looking at Chapter 7 bankruptcy as a way to get out and get a fresh start. One of the most common questions people have is simple: What debts can actually be cleared in Chapter 7?

The good news is that Chapter 7 can clear many types of debt and give you room to breathe. The not-so-great news is that not every debt goes away. Understanding the difference is an important step before you decide to file, and it is one reason why many people choose to work with an experienced bankruptcy attorney. 

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

The Basics: Chapter 7 Bankruptcy 

Chapter 7 bankruptcy is often referred to as liquidation bankruptcy. It works by selling off certain nonessential assets to help repay creditors, although many people can keep most or all of their property through exemptions. Once the process is complete, eligible debts are discharged, which means you are no longer legally required to pay them. 

A local Opelika bankruptcy lawyer can explain how the process works in Alabama and what property exemptions may be available for your situation.

Debts That Can Be Discharged with Chapter 7 Bankruptcy

The primary purpose of personal bankruptcy is to provide individuals with an opportunity to recover when debt becomes unmanageable. In Chapter 7, the following debts are usually eligible for discharge:

  • Credit card debt: This is one of the most common reasons why people file. Chapter 7 can wipe out balances, late fees, and penalties. 
  • Medical bills: If medical debt has piled up after an illness or injury, Chapter 7 can help.
  • Personal loans: Many unsecured personal loans and payday loans can be discharged.
  • Old rent bills: Past-due rent owed to a landlord may also qualify. 

These discharges can clear a huge financial burden and allow you to move forward responsibly. 

Debts That Usually Cannot Be Discharged

Not all debts are cleared in Chapter 7 bankruptcy. Some of the most common debts that remain include:

  • Student loans: These are very difficult to discharge unless you meet strict hardship rules.
  • Child support and alimony: Payments ordered by the court cannot be eliminated.
  • Recent taxes: Most income tax debt cannot be discharged unless it meets very specific conditions. 
  • Court fines ot criminal restitution: These obligations must still be paid. 
  • Debts from fraud: If a creditor proves a debt was created by fraud, it will not be discharged. 

Knowing what is and is not covered helps you set realistic expectations before you file. 

Why Legal Counsel Matters

The list of what qualifies for discharge can be complicated. That is why working with a bankruptcy attorney is so important. A lawyer can help you review your debts, explain what can be cleared, and help you protect the property that matters most. They also make sure your paperwork is accurate and your case stays on track and is handled promptly. 

Filing on your own may sound tempting, but mistakes can cost you time, money, and your peace of mind. Having a local Opelika bankruptcy lawyer guide you through the process gives you clarity and confidence. 

Talk with David S. Clark, Your Opelika Bankruptcy Attorney, Today

If you are considering Chapter 7 bankruptcy, you deserve clear answers about what debts can be discharged and what will remain. David S. Clark, an Opelika bankruptcy lawyer, has years of experience helping people in Lee County and the surrounding area get financial relief through personal bankruptcy. 

Call today or schedule a consultation with David S. Clark, a trusted bankruptcy attorney in Opelika, and take the first step towards a better financial future. 

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.

Aug 27
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Top 3 Causes of Bankruptcy in Alabama

By Bankruptcy Law, Financial Tips No Comments

A quick overview of the top 3 causes of personal bankruptcy in Alabama.

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. 

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

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. 

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.