Bankruptcy Law

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. 

Here is a quick guide on how to find a personal bankruptcy attorney in Opelika.

If you’re considering filing for personal bankruptcy, you probably feel overwhelmed and might not be sure where to start. Debt can affect every aspect of your life, from your home to your mental health. The good news is, you’re not alone. The right bankruptcy attorney can help you regain control of your finances and move forward with a plan tailored to you.

If you’re looking for a trusted Opelika bankruptcy lawyer, it’s important to understand the basics of bankruptcy, what types of legal support you might need, and how to find someone who can help guide you through the entire process. 

Understand the Chapter of Bankruptcy You Need 

There are different types or “chapters” of personal bankruptcy you can file for depending on your financial situation. Two of the most common types are Chapter 13 bankruptcy and Chapter 7 bankruptcy. 

• Chapter 13 bankruptcy is designed for people who have a steady, reliable income but need time to catch up on debts. It allows you to reorganize what you owe into an easily manageable payment plan that typically lasts three to five years. Chapter 13 bankruptcy can help you keep your home, car, and other assets while getting back on track financially. 
• Chapter 7 bankruptcy, also known as “liquidation bankruptcy”, is designed for individuals who are unable to repay their debts. Unlike Chapter 13, this specific chapter of bankruptcy isn’t based on a personalized repayment plan. Yet, it is essential to note that Chapter 7 does not discharge every single debt; instead, it typically only clears “unsecured” debts.

If you aren’t sure about which chapter applies to you, that’s where a qualified, trusted bankruptcy attorney can help. A good bankruptcy attorney will explain your options and help you decide which option is best for you based on your unique financial situation. 

Why You Should Work With a Local Opelika Bankruptcy Lawyer 

Bankruptcy law is federal, but local courts have their own specific procedures and preferences. That is why choosing an Opelika bankruptcy lawyer with local experience is important. David S. Clark has worked with the East Alabama legal system for years, and he understands how the courts work in Lee County and surrounding areas. 

A local attorney can help make sure your documents are filed correctly and before deadlines. They also help ensure communication with court officials is smooth. Most importantly, a local lawyer understands the community and the common financial struggles people face in Opelika. 

What to Look for in an Opelika Bankruptcy Attorney 

Finding the right bankruptcy lawyers is not about clicking on the first link you see online. You want someone who:

• Offers a free consultation so you can ask questions and explore your options without adding financial pressure
• Explains the process clearly so you know exactly what to expect 
• Listens without judgment and makes you feel supported during a challenging time
• Has experience with Chapter 13 and Chapter 9 bankruptcy and understands how to build a repayment plan tailored to your financial situation

Your bankruptcy attorney should be someone who gives you confidence and clarity, not confusion or guilt. Filing for personal bankruptcy is already stressful. The right attorney can help ease that burden. 

Read Reviews and Ask Questions

Before choosing a lawyer, read reviews and testimonials from people in similar situations. Has the attorney handled personal bankruptcy cases like yours? Do past clients say they felt informed throughout the process?

David S. Clark is known for his hands-on approach. As a trusted Opelika bankruptcy lawyer, he takes time to understand each client’s story and offers a custom plan that fits your financial situation. 

David S. Clark – Your Personal Bankruptcy Attorney in Opelika

If you live in Opelika or nearby and are considering Chapter 13 bankruptcy or another form of personal bankruptcy, you don’t need to wait. The sooner you speak with a knowledgeable bankruptcy attorney, the sooner you can start building a stable financial future. 

Davis S. Clark offers free consultations to help you understand your options and make informed decisions. Whether you are behind on credit card payments or facing foreclosure, help is available. If you’d like to speak with David and get professional advice on your current financial situation, please don’t hesitate to contact us.

Here are some of the frequently asked questions concerning personal bankruptcy.

If you’re an Auburn or Opelika resident seeking a fresh financial start through personal bankruptcy, then you probably have several questions concerning the whole process. Below are a few of the most commonly asked questions about personal bankruptcy to help you understand the process and make informed decisions about your financial future from David S. Clark, a Chapter 7 and Chapter 13 bankruptcy attorney in Opelika. 

Will I lose my home if I file for bankruptcy?

As mentioned, bankruptcy is a daunting idea for several reasons, but the ability to lose your home often causes many Alabama residents to shy away from even the thought of bankruptcy. 

The answer to this question depends on a number of important factors such as the type of bankruptcy you file for (as shown below), the amount of equity in your home, and more. 

If you file for Chapter 7 bankruptcy, your home may be at risk if you have a significant amount of equity in it. However, if you file for Chapter 13 bankruptcy, you may be able to keep your home as long as you continue making payments under the court-approved repayment plan. 

Ultimately, when it comes to personal bankruptcy, every case is going to be different, so it is essential to communicate with a dedicated bankruptcy attorney on the best options that could protect your home. 

Will bankruptcy stop debt collection harassment?

According to Section 524 of the U.S. Bankruptcy Code, no one can take action against you if your debt has been discharged through bankruptcy. Known as the “automatic stay”, this action is immediately ordered and enforced by the bankruptcy court as soon as you file for bankruptcy. 

Ultimately, the automatic stay makes it illegal for creditors to contact you about any discharged debt once you file for bankruptcy. This means creditors can’t call, email, visit, or do anything that attempts to collect a debt from you. 

It is important to note that although creditors can no longer contact you regarding discharged debts, not all debts are discharged through bankruptcy.

When should I file for bankruptcy?

Unfortunately, when it comes to bankruptcy, there is no simple answer to this question as it depends on your individual circumstances. Generally speaking, if you’re struggling with overwhelming debt and are unable to make timely payments, it may be time to consider filing for bankruptcy. 

Other instances could include situations where you’re facing foreclosure, wage garnishment, or constant harassment from creditors. However, it is important to note that filing for bankruptcy should not be taken lightly, and seeking the counsel of an experienced bankruptcy attorney first is essential.

David S. Clark – A Local Lawyer Dedicated To You

While these are a few of the more popular questions about bankruptcy, it is important to remember that every personal bankruptcy case will be different. Yet, you don’t have to go through it alone. 

If you are an Auburn or Opelika resident ready to file for Chapter 7 or Chapter 13 bankruptcy or simply seeking the financial help of an experienced bankruptcy attorney, contact David S. Clark today!

Bankruptcy can be confusing. Here are a few questions you can ask to better understand the benefits and necessary requirements of Chapter 7 and Chapter 13 bankruptcy.

Filing for bankruptcy can feel overwhelming and full of uncertainty, but you don’t have to do it alone. If you live in Opelika and are considering personal bankruptcy, it’s important to ask the right questions to better understand your options. Here’s a quick guide to key questions you should discuss with your bankruptcy attorney before moving forward, from David S. Clark, a Chapter 7 and Chapter 13 bankruptcy attorney in Opelika, Alabama.

What Type of Bankruptcy Should I File?

Not all personal bankruptcies are the same, and choosing the right type, or chapter, for your unique financial situation can feel overwhelming. Yet, if you’re working with an experienced personal bankruptcy attorney, they can help you find the right chapter for your situation. David S. Clark works with Chapter 7 and Chapter 13 bankruptcy specifically. 

What’s the Difference Between Chapter 7 and Chapter 13 Bankruptcy?

Chapter 7 bankruptcy, also known as “liquidation bankruptcy”, is designed for individuals who are unable to repay their debts. Unlike Chapter 13, this specific chapter of bankruptcy isn’t based on a personalized repayment plan. Yet, it is essential to note that Chapter 7 does not discharge every single debt, instead, it typically only clears “unsecured” debts which includes (but is not limited to) the following:

• Credit Card Balances
• Medical Bills
• Personal Loans
• Utility Bills

Also, in return to this discharge, the bankruptcy trustee may sell some of your non-exempt assets to pay off your creditors.

Often referred to as a “wage earner’s plan”, Chapter 13 bankruptcy is a chapter of personal bankruptcy that allows individuals with an income to establish a plan to repay all or parts of their debt. This functions differently than Chapter 7, which involves liquidating certain assets, like a house or car, to pay off debts. Essentially, Chapter 13 allows you to keep your property and assets while consolidating your debt into monthly payments, typically over the course of 3 to 5 years.

Does Your Bankruptcy Attorney Have a Proven Track Record of Success?

There are countless bankruptcies lawyers across Auburn and Opelika, Alabama offering their personal bankruptcy services, but that does not necessarily mean that they have proven experience actually helping to get clients back on their feet.

Be sure to ask your attorney about their case history. A reputable bankruptcy lawyer should be able to provide references or examples of past clients who can speak to their experience and success.

David S. Clark – Your Personal Bankruptcy Attorney in Opelika

While these questions can help, it is crucial to find a personal bankruptcy attorney who cares. So, before anything, it is essential to consult with a knowledgeable bankruptcy attorney who can help you choose the best option for your unique situation. 

Ultimately, bankruptcy offers more than just a means of resolving medical debt. It provides individuals with a fresh financial start, freedom from creditor harassment, and the opportunity to rebuild credit over time. By taking proactive steps to address medical debt through bankruptcy, individuals in Opelika can regain control of their finances and move toward a brighter financial future.

From his many valuable years of experience serving the Auburn and Opelika, Alabama community, David S. Clark is knowledgeable and prepared to help you start your journey back to financial security. If you need help navigating the stress, intricacies, and complexities of Chapter 7 or Chapter 13 Bankruptcy, contact David S. Clark, Attorney at Law today!

David S. Clark breaks down the benefits of picking a local bankruptcy attorney over a large national firm.

If you’re the kind of person that cares about relationships and results in any legal case, then you’re almost always going to be more satisfied with the representation of a local attorney vs. a large national firm. It can typically be difficult to maintain a quality relationship with a large firm in a larger city due to the sheer volume of cases those firms will usually handle, as well as numerous different attorneys that you’re likely to interact with. While the national firms may seem initially appealing due to their resources, there are many different reasons why the local attorney may be a better choice for your bankruptcy representation.

1. Relationships

By far the most important aspect of working with a local attorney that is “near me,” is the ability to maintain a level of a professional relationship that’s practically impossible with a large firm. Sitting down and talking with a real human being is often missed, and the ability for another person to look you in the eye and understand your situation is imperative. If you’re able to work with an attorney face to face, you will likely receive more flexibility and a more customized approach, having the lawyer customize their work specifically for your case.

2. Local Court Knowledge

An attorney from the area you’re familiar with will likely have a more thorough and comprehensive understanding of local ordinances and laws that could affect your case. While many parts of bankruptcy law are federally mandated, the way a judge could rule over your proceedings is not. Having an experienced attorney that is familiar with your city could make a huge difference in the effectiveness of your representation.

3. Cost Effectiveness

Without the massive overhead of a large corporate office, a local bankruptcy attorney will likely be able to be more cost effective for you in the long run. While no one wants to have to make a financial decision about the best representation available, the ability for a local attorney near me to work with you on the cost of a particular case could be the difference in success or failure.

4. Long-Term Clients

Local attorneys are often focused on building long-term relationships with their clients. Their goal is not just to resolve a single case but to develop a trusted, ongoing relationship that could lead to future referrals or legal needs. This commitment to client satisfaction can translate into a more thorough, hands-on approach to your case.

National firms, however, are typically focused on volume and may view cases as part of a larger business model rather than focusing on building lasting relationships with clients. Once your case is closed, there’s often little follow-up or ongoing engagement unless you have another legal matter.

The next chapter in our Back to Basics series: The Benefit of an Automatic Stay

If you’re a resident of Auburn or Opelika, Alabama, and considering personal bankruptcy, then you probably understand the stress of mounting debt, constant creditor calls, or even potential lawsuits. Yet, whether you’re considering Chapter 7 or Chapter 13 bankruptcy one of the most powerful tools you can leverage is the “automatic stay”. 

So, in today’s chapter of Back to Basics, here is a breakdown of the basics of an automatic stay, how it works in personal bankruptcy, and its key benefits for debtors from David S. Clark, a Chapter 7 and Chapter 13 bankruptcy attorney in Opelika, Alabama. 

What is an Automatic Stay?

Whether you file for Chapter 13 or Chapter 7 personal bankruptcy, the automatic stay is a federal provision that takes effect as soon as you file. Once in place, creditors must stop all attempts to collect debts, garnish wages, foreclose on your home, or repossess property. In a way, the automatic stay acts as a “shield” to give you relief from the financial pressures that brought you to bankruptcy. 

How Does an Automatic Stay Work?

When you file your bankruptcy petition, the court immediately issues the automatic stay. This notice is sent to your creditors, and they are required by law to cease any collection efforts. This protection remains in effect throughout your bankruptcy process unless a creditor successfully files a motion to lift the stay.

While the stay is not permanent, it offers you a window of time to organize your finances, negotiate with creditors, or prepare for the discharge of certain debts. In Chapter 7 bankruptcy, the automatic stay is in place until your assets are liquidated and debts are discharged. For Chapter 13 bankruptcy, the stay can last much longer, often throughout the entire repayment plan, which could span three to five years.

The Key Benefits of an Automatic Stay

An automatic stay provides several crucial advantages, especially for individuals who are drowning in debt. Here are the key benefits:

1. Stops Collection Calls and Harassment Once the automatic stay is in effect, creditors are prohibited from contacting you to demand payment. This means no more harassing phone calls, letters, or lawsuits, giving you peace of mind and the space to focus on your financial recovery.
2. Halts Wage Garnishments If your wages are being garnished to satisfy unpaid debts, the automatic stay puts an immediate stop to this process. You’ll have access to more of your paycheck, which can help you cover your day-to-day expenses while you’re working through bankruptcy.
3. Prevents Foreclosure and Repossession One of the most significant benefits of the automatic stay is that it can stop foreclosure proceedings or repossessions in their tracks. This is particularly valuable for those filing under Chapter 13, as it allows you to create a repayment plan and potentially save your home or car from being taken.

Your Personal Bankruptcy Attorney in Opelika – David S. Clark

The automatic stay is one of the most powerful protections you can receive when filing for Chapter 7 or Chapter 13 bankruptcy. It provides much-needed relief from debt collection efforts and allows you to have a second chance. If you’re considering bankruptcy and want to learn more about how the automatic stay could benefit you, consult with a qualified bankruptcy attorney, like David S. Clark in Opelika, Alabama who can guide you through the process and ensure that your rights are protected. For more information, contact the bankruptcy attorneys at David S. Clark today! 

The next chapter of our “back to basics” series: Bankruptcy and Wage Garnishments.

As we’ve said over and over, bankruptcy can seem extremely scary. The thought of losing your car, home, or other possessions is certainly intimidating. Thankfully, there are often more myths surrounding bankruptcy than truths. Ultimately, more than anything, bankruptcy can significantly help with overwhelming personal debt and even protect you from wage garnishment. So, in the next iteration of our “back to basics” series, we wanted to take a moment to give a quick breakdown of bankruptcy and wage garnishments. 

What Are Wage Garnishments?

According to the US Department of Labor, wage garnishment is “a legal procedure in which a person’s earnings are required by court order to be withheld by an employer for the payment of a debt such as child support.” Essentially, this means that your paycheck or any other form of payment would go to a creditor instead of to you. A few more common forms of garnishments could include child support, alimony, student loan payments, and income taxes. 

Ultimately, wage garnishments can be financially crippling and incredibly difficult to stop. This is especially true when some forms of wage garnishments can take up to 50% or more of your wages. Thankfully, there are ways to fight this, and it surrounds that “scary” word we mentioned before…bankruptcy. 

In terms of personal bankruptcy, there are two main chapters, Chapter 7 and Chapter 13. Both of these include a few different processes and forms of repayment, which makes it essential to talk to an experienced personal bankruptcy attorney in Opelika before moving forward. Yet, here is a quick breakdown of both in terms of wage garnishments. 

Chapter 7 Bankruptcy and Wage Garnishments

As soon as you declare Chapter 7 bankruptcy, wage garnishments are stopped due to an item known as the “automatic stay”. Ultimately, the automatic stay gives you a break from the financial stress that often follows wage garnishments. Once in place, this also allows your dedicated bankruptcy attorney in Opelika, Alabama to help you regain your financial footing. 

Chapter 13 Bankruptcy and Wage Garnishments

Much like Chapter 7, Chapter 13 bankruptcy introduces an automatic stay to your unique bankruptcy case. As mentioned above, the ability to stop wage garnishments is one of the most impactful ways that declaring bankruptcy helps when debt gets overwhelming. 

Through the Chapter 7 and Chapter 13 bankruptcy processes, and with the help of an experienced bankruptcy attorney, regaining your financial freedom and getting back on your feet isn’t so far away. It will take hard work, commitment, and starting new financial habits, but it is possible to get back to a healthy place with your finances. The financial easement process of automatic stays, which halt wage garnishments, is only one such way that the bankruptcy process can help.

The Difference With David S. Clark

If you are looking for dedicated bankruptcy law professionals to help you with your financial hardships, look no further than the experienced David S. Clark. Our focused and successful legal team has a combined legal experience of over 25 years. 

If you are an Auburn or Opelika, Alabama resident struggling with the weight of overwhelming debt, let us serve you and help you get back on your feet. Contact us today to begin your journey back to financial freedom.