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Chapter 7 Bankruptcy

Aug 27
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Back to Basics: What is Chapter 7 Bankruptcy

By Chapter 7 Bankruptcy No Comments

David S. Clark takes you “back to basics” with Chapter 7 bankruptcy.

Next up in our “Back to Basics” series, we want to break down one of the most common forms of personal bankruptcy: Chapter 7. Ultimately, Chapter 7 bankruptcy offers a fresh start to residents across Alabama by discharging most unsecured debts (we’ll explain what this means below). So, if you’re an Opelika, Alabama resident seeking freedom from overwhelming debt, here is how Chapter 7 bankruptcy could help from David S. Clark, a personal bankruptcy attorney in Opelika, 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

What is Chapter 7 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.

How Does Chapter 7 Bankruptcy Work?

In terms of the timeline of events, Chapter 7 always begins with a petition to a local bankruptcy court. In this case, in Opelika, much like the rest of Alabama, this petition for bankruptcy also requires you to provide detailed information about your unique financial situation. This must include your income, expenses, assets, debts, and more. Ultimately, this information will be used to determine if you qualify for Chapter 7 bankruptcy under the “means test”. 

The means test compares your income to the median income for a household of your size in Alabama. If your income is below the median, you typically qualify for Chapter 7. If your income is above the median, you may still qualify, but you’ll need to provide additional information to demonstrate that you can’t afford to repay your debts under a Chapter 13 repayment plan (the other chapter of personal bankruptcy).

Once your petition is filed, an automatic stay goes into effect, preventing creditors from pursuing collection actions against you. This means that creditors must stop calling, sending collection letters, or initiating lawsuits while your bankruptcy case is pending.

What Happens to Your Assets?

Typically, and understandably so, one of the most common concerns of bankruptcy is the potential loss of assets. Thankfully, while it’s true that your appointed bankruptcy trustee may sell some of your property to pay off unsecured debts, many assets are protected by Alabama law. These exemptions can include your home, car, personal belongings, and certain retirement accounts. Yet, every bankruptcy case is different, so it is essential to work with an experienced bankruptcy attorney who can help you understand further. 

How Long Does Chapter 7 Bankruptcy Take?

The Chapter 7 process is relatively quick compared to other forms of bankruptcy. Most cases are completed within four to six months from the date of filing. After your case is discharged, you are no longer legally obligated to repay the discharged debts, allowing you to focus on rebuilding your financial future.

David S. Clark – Your Chapter 7 Bankruptcy Attorney in Alabama

In conclusion, if you’re struggling with the weight of debt, Chapter 7 bankruptcy may be the second chance you need to find financial freedom. Yet, it is essential to seek advice from a dedicated personal bankruptcy attorney throughout this process. That’s where a local Chapter 7 and Chapter 13 bankruptcy attorney like David S. Clark can provide the help you need! 

If you’re ready to start the journey towards financial freedom, contact the team at David S. Clark in Opelika, Alabama 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.

Jul 31
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How Chapter 7 Bankruptcy Can Help in Auburn, Alabama

By Bankruptcy Law, Chapter 7 Bankruptcy No Comments

Bankruptcy is quite common throughout the country, as well as Alabama specifically. In Auburn, Chapter 7 Bankruptcy is one the most common forms of bankruptcy, and many residents file Chapter 7 Bankruptcy in Auburn every year.

Auburn residents who face crippling financial debt may see few ways forward. Thankfully, even when your debt can seem too large to overcome, there are safeguards in place, including Chapter 7 Bankruptcy, that allow for a fair and effective way to help get you back on your feet. Let’s take a closer look at how Chapter 7 Bankruptcy can help in Auburn, 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

Chapter 7 Bankruptcy in Auburn, Alabama

Bankruptcy is quite common throughout the country, as well as Alabama specifically. In Auburn, Chapter 7 Bankruptcy is one the most common forms of bankruptcy, and many residents file Chapter 7 Bankruptcy in Auburn every year. Essentially, Chapter 7 Bankruptcy is an option for Auburn residents who accumulate debt to a point that is beyond control, where they cannot afford to pay their debt off. When this occurs, Auburn residents can consider Chapter 7 Bankruptcy, which gives them a way to start again and unburden themselves from the crippling weight of debt.

How Chapter 7 Bankruptcy Works in Auburn

Chapter 7 Bankruptcy works to alleviate debt that has been accumulated to the point where you cannot repay it. It does this by liquidating your assets in an effort to pay down these debts, allowing for you to move forward without facing further legal actions and wage garnishments. By liquidating your assets, Chapter 7 Bankruptcy pays down as much of your debt as possible, and with the help of the courts and trustees, it creates a path forward that is fair for both the debtor and the one who is owed. 

Auburn Bankruptcy Attorneys

With the help of experienced bankruptcy attorneys in Auburn, navigating the process of bankruptcy can be greatly simplified. Trusted and experienced bankruptcy attorneys in the area will know the ins and outs of bankruptcy law and the legal process revolving around it, so they are able to guide you through the process in a way that serves your best interest. They will also be able to advise you regarding your debt and seeing if there is a way to avoid bankruptcy altogether. Because of their experience in the field and knowledge of how bankruptcy can sneak up on well-meaning Auburn residents, Auburn bankruptcy attorneys will also be equipped with advice on how to build financially responsible habits and avoid bankruptcy in the first place. 

David S. Clark: Auburn’s Chapter 7 Bankruptcy Attorney

If you are an Auburn resident who has accumulated overwhelming debt that can no longer be managed or effectively paid down, turning to the experts at David S. Clark is a great next step to take. We can advise you on strategic financial decisions that may be able to help you avoid bankruptcy. However, when chapter 7 bankruptcy is in your future, there is no one more capable to represent you and guide you through the bankruptcy process than David S. Clark.

Our office is located in Opelika, and we serve the needs of Auburn residents who face bankruptcy and need help. We can guide you through the complicated process step by step. Contact us today for more information on chapter 7 or chapter 13 bankruptcy in Auburn, or to schedule a free consultation at our office in Opelika.

Come see Auburn’s Chapter 7 Bankruptcy Attorney, David S. Clark, and begin the journey to regaining financial stability 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 08
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Chapter 7 Bankruptcy: Is It Right for You?

By Chapter 7 Bankruptcy, Financial Tips No Comments

A breakdown of Chapter 7 bankruptcy

Are you facing overwhelming debt and financial challenges in Auburn or Opelika, Alabama? If so, you may be considering Chapter 7 bankruptcy as a potential solution. Yet, there are a few things to consider before making any decisions. Here is a quick breakdown of Chapter 7 bankruptcy and if it’s right for you from David S. Clark, an experienced bankruptcy attorney in Opelika, Alabama. 

What is Chapter 7 Bankruptcy?

Before any decision, it is important to have a foundation of knowledge about the issues at hand. Chapter 7 bankruptcy is no different, especially with the myths surrounding it. So, what is Chapter 7 bankruptcy? 

Chapter 7 bankruptcy, often referred to as “liquidation” bankruptcy, is a legal process that allows individuals to discharge unsecured debts, providing a fresh start. Unsecured debts include: 

  • Credit card balances (including overdue and late fees)
  • Medical bills
  • Personal and payday loans 
  • Mortgage or automobile loans for which you are unable to pay
  • Utility bills
  • Social Security overpayments
  • Veterans’ assistance loans and overpayments

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 Does Chapter 7 Bankruptcy Work?

In a Chapter 7 bankruptcy filing, a dedicated trustee is appointed to liquidate non-exempt assets, which are then used to repay creditors. Ultimately, while it may be scary, giving up physical assets to help balance debt is usually required.

Items that the state can take to help balance your debt are known as nonexempt assets. Exempted assets are those that cannot be taken by the state to balance your debt. Learn more here.

Assessing Your Eligibility for Chapter 7 Bankruptcy

Qualification for Chapter 7 Bankruptcy involves submitting your average income and disclosing any assets or unexpired leases you possess. Your bankruptcy attorney will assist you in evaluating your property and assets to determine the feasibility of liquidating them.

Ultimately, every Chapter 7 bankruptcy case is going to be different. So, finding a dedicated bankruptcy attorney could be the difference between success and failure. 

How an Experienced Bankruptcy Attorney Can Help

In conclusion, Chapter 7 bankruptcy can be a powerful tool for residents in Auburn and Opelika facing financial hardships. By understanding the process, assessing eligibility, and seeking the guidance of a bankruptcy attorney, you can make an informed decision about whether Chapter 7 is the right solution for you.

Navigating the complexities of bankruptcy law can be challenging, but a skilled bankruptcy attorney such as David S. Clark can guide you through the process. This includes assessing your financial situation, helping you understand your options, and ensuring that your bankruptcy filing is completed accurately and efficiently.

If you’re considering Chapter 7 bankruptcy in Opelika, Alabama, the team of experts at David S. Clark is here to help. Contact us for a free consultation to discuss your financial situation and determine your best course of action 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.

Jul 12
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Chapter 7 Bankruptcy Requirements

By Chapter 7 Bankruptcy No Comments

Chapter 7 bankruptcy can be confusing, overwhelming, and complicated. It doesn’t have to be. 

Are you an Auburn or Opelika resident overwhelmed by debt and facing financial difficulties? Chapter 7 bankruptcy might be the fresh start you need. By filing for Chapter 7 bankruptcy, you can discharge various unsecured debts, including medical bills, credit card debt, and signature loans.

However, without the proper experience, navigating the complexities of bankruptcy can be extremely confusing. Here is a quick guide on Chapter 7 bankruptcy and the necessary requirements from David S. Clark, a Chapter 7 and Chapter 13 personal bankruptcy attorney in Opelika, 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

Understanding the Chapter 7 Bankruptcy Process

When you file for Chapter 7 bankruptcy, a court-ordered action called the Automatic Stay comes into effect immediately. This stay halts all debt collection attempts by creditors, offering you relief and protection.

It’s important to remember that bankruptcy doesn’t signify the end of your finances forever. Rebuilding your financial life can be challenging, but with the support of a skilled Chapter 7 bankruptcy attorney, it is far from impossible. 

To initiate the Chapter 7 bankruptcy process, you’ll need to sign a petition and file it with your local bankruptcy court. The petition includes comprehensive details such as a list of creditors, the nature and amount of their claims, your income and assets, as well as a breakdown of your expenses.

After filing for bankruptcy, an appointed trustee will review your creditors and their claims, assess your income sources, frequency, and amount, scrutinize your property and assets, and examine your expenses. This thorough examination ensures that there are no suspicions of fraud.

Qualifying for Chapter 7 Bankruptcy

Qualification for Chapter 7 Bankruptcy involves submitting your average income and disclosing any assets or unexpired leases you possess. Your bankruptcy attorney will assist you in evaluating your property and assets to determine the feasibility of liquidating them.

However, certain necessary assets may be exempt from liquidation. In such cases, the liquidation process stops completely, and you’ll need to reaffirm your obligations to the creditors. It’s important to note that Chapter 7 bankruptcy may be disapproved if the amount you’re trying to reaffirm is significant or if you’re attempting to reaffirm multiple unsecured debts.

Furthermore, every Chapter 7 bankruptcy case is going to be different. So, finding a dedicated bankruptcy attorney could be the difference between success and failure. 

David S. Clark, Your Opelika Bankruptcy Attorney

When facing the complexities and stresses of bankruptcy, having a knowledgeable bankruptcy attorney like David S. Clark by your side is invaluable. With years of expertise, a local location, and a heart to understand and encourage, David S. Clark can provide the help you need when debt feels overwhelming. 

For more information on David S. Clark, your trusted Opelika and Auburn bankruptcy attorney, 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.

Jun 08
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Is Chapter 7 Bankruptcy Right For Me?

By Bankruptcy Law, Chapter 7 Bankruptcy, Financial Tips No Comments

Are you considering filing bankruptcy?   

When considering bankruptcy, it is important to examine all of your financial options. Most personal bankruptcy cases fall under Chapter 7 bankruptcy or Chapter 13 bankruptcy. Also known as liquidation bankruptcy, Chapter 7 bankruptcy involves selling most of your assets to pay off debts.

If you’re an Auburn or Opelika resident wondering if Chapter 7 is right for you, here are a couple of essential questions you need to ask yourself.

Can I avoid bankruptcy?

Simply put, bankruptcy is when someone cannot pay their outstanding debts with the resources they currently possess. You may find yourself in this situation due to unemployment, incurring a significant amount of medical debt, or many other reasons. Just because you are in one of these situations does not always mean bankruptcy is your only option. It is best to speak with a bankruptcy lawyer to ensure that filing for bankruptcy is the best solution for you. Read more here.

When you are uncertain about what next step to take, there are experienced and knowledgeable bankruptcy attorneys like David S. Clark in the Auburn and Opelika area that can help you sort through all of your options and determine your best next step.

 

What kind of debt is discharged in Chapter 7 Bankruptcy?

Not all forms of debt are created equal, and not all debts can be discharged through Chapter 7 bankruptcy. Before deciding if Chapter 7 bankruptcy is right for you, consider what kind of debt you are looking to discharge.

Some common forms of debt that are dischargeable through Chapter 7 bankruptcy include: 

  • Credit card balances (including overdue and late fees)
  • Medical bills
  • Personal and payday loans 
  • Mortgage or automobile loans for which you are unable to pay
  • Utility bills
  • Social Security overpayments
  • Veterans’ assistance loans and overpayments

Some common forms of debt that are non-dischargeable include:

  • Child support
  • Alimony
  • Student loans
  • HOA fees
  • Secured debts

 

What could I be giving up?

Giving up physical assets to help balance debt is required in most cases. Items that can be taken by the state to help balance your debt are known as nonexempt assets. Exempted assets are those that cannot be taken by the state to balance your debt. Learn more here.

Bankruptcy laws generally exempt assets that are deemed as necessities to life, such as:

  • Your car (depending value)
  • Your home (depending on its value)
  • Clothing 

Some typically nonexempt items may include:

  • Property that is not your primary home
  • A newer model vehicle with equity
  • Investments
  • Valuable artworks
  • Jewelry

 

What does the Chapter 7 Bankruptcy timeline look like?

After being filed, a Chapter 7 bankruptcy case in the Auburn and Opelika area can typically be resolved in about 4 months when conducted by an experienced personal bankruptcy attorney such as David S. Clark. Filing for Chapter 7 bankruptcy can give you a financial reset, telling creditors to take a step back and giving you some breathing room to figure out your next steps without the added stress of having to deal with them.

Once you have successfully discharged your debts, you can begin to rebuild your credit through financially responsible practices such as paying bills on time, keeping a low credit card balance, and limiting applications for new credit. 

 

Who can help me navigate Chapter 7 Bankruptcy?

Although the process of filing for bankruptcy and the process to financial recovery can be stressful and difficult, there are personal bankruptcy attorneys like David S. Clark who are more than willing to walk with you through this process. You do not have to go into this battle alone. Having an attorney present during the process of filing for bankruptcy takes some of the load off your shoulders and guarantees you are taking all of the correct steps. 

If you’re an Opelika or Auburn, Alabama resident struggling with the weight of overwhelming debt and seeking the financial advice, wisdom, and encouragement of an experienced bankruptcy attorney, contact David S. Clark! You can get started by requesting a free consultation 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.

Feb 14
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Chapter 7 Bankruptcy Explained

By Bankruptcy Law, Chapter 7 Bankruptcy No Comments

Chapter 7 bankruptcy can be complicated, but it doesn’t have to be.

Despite similarities in occupations throughout Auburn and Opelika, every resident’s financial situation differs. Ultimately, no matter how stable your income is, debts can quickly become unmanageable for anyone, leading to financial distress and even the loss of valuable assets, like your home. 

Thankfully, when debt does become unmanageable there is a fresh start available. Here is an explanation of Chapter 7 bankruptcy and how the process works from David S. Clark, an experienced Chapter 7 and Chapter 13 bankruptcy attorney in Opelika, 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

Understanding Chapter 7 Bankruptcy

Perhaps the most common type of bankruptcy, known as “liquidation bankruptcy” or Chapter 7, allows you to regain control of your finances by having most of your unsecured debt, including credit card debt, medical bills, and personal loans discharged by a bankruptcy court.

Yet, before describing how Chapter 7 bankruptcy works, it is essential to know exactly what kinds of debt could be discharged. 

Dischargeable debts under Chapter 7 include:

  • Credit card balances (including overdue and late fees)
  • Medical bills
  • Personal and payday loans 
  • Mortgage or automobile loans for which you are unable to pay
  • Utility bills
  • Social Security overpayments
  • Veterans’ assistance loans and overpayments

Non-dischargeable Debts Include:

  • Non-dischargeable debts under Chapter 7 include:
  • Child support
  • Alimony
  • Student loans
  • HOA fees
  • Secured debts

The Process of Chapter 7 Bankruptcy

Three main steps occur once you file for Chapter 7 bankruptcy in Alabama. These consist of the following:

  • Forms and Counseling

Before a bankruptcy court looks at each unique case, there are a number of necessary forms an Opelika or Auburn resident must fill out. These require in-depth knowledge of your personal information, including finances, creditors, assets, income, expenses, and more. 

After filing, the court places an automatic stay on your case, preventing any and all creditors from collecting debts. 

  • Trustee Appointment

After filing for bankruptcy, Auburn or Opelika’s bankruptcy court will appoint an unbiased trustee to oversee your entire Chapter 7 bankruptcy process. Beyond choosing what assets to liquidate to pay off creditors, the trustee will also schedule meetings with creditors, where plans for debt repayment are put in place. 

  • Debt Repayment & Discharge

After meeting with creditors and the bankruptcy court, certain non-dischargeable debts are paid with assets decided by the bankruptcy trustee, while any dischargeable debts are immediately discharged. 

After debts are discharged with Chapter 7 bankruptcy (approximately two months after), creditors may still attempt to recover previous debts, even though they have no right to. So, throughout your Chapter 7 bankruptcy process, make sure to retain any and all necessary documents.

David S. Clark – Your Local Chapter 7 Bankruptcy Attorney 

David S. Clark is an experienced Auburn and Opelika Bankruptcy Attorney who understands the intricacies, complications, and stress of bankruptcy. If you need help navigating Chapter 7 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 29
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Bankruptcy: Your Fresh Start in 2023

By Chapter 7 Bankruptcy, Financial Tips No Comments

Bankruptcy can provide a fresh start to your finances, but what happens after that?

The start of the new year often brings thoughts of resolutions. Whether it’s to read more books, lose a certain amount of weight, or learn a new skill or hobby, whatever the case may be, it can be hard to remain motivated to “get better” when progress seems slow. 

Much like a New Year resolution, improving the control of your finances can be extremely tough. Yet, it doesn’t have to be. Here are a few ways bankruptcy could help you achieve a fresh start financially from David S. Clark, an experienced bankruptcy attorney in Opelika, 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

How Bankruptcy Could Help

From job loss, medical expenses, housing costs, or simply living beyond your means, bankruptcy is often the cause of a combination of significant life events. Unfortunately, these events are prevalent among Alabama residents, especially in the hardships that often come with a new year. 

Thankfully there are tactics in place for you to gain a second chance. Perhaps the most common type of bankruptcy, known as “liquidation bankruptcy” or Chapter 7, allows you to regain control of your finances by having most of your unsecured debt, including credit card debt, medical bills, and personal loans discharged by a bankruptcy court.

Yet, before filing for Chapter 7 bankruptcy, it is crucial to know the difference between dischargeable and non-dischargeable debts. 

Dischargeable debts under Chapter 7 include:

  • Credit card balances (including overdue and late fees)
  • Medical bills
  • Personal and payday loans 
  • Mortgage or automobile loans for which you are unable to pay
  • Utility bills
  • Social Security overpayments
  • Veterans’ assistance loans and overpayments

Non-dischargeable debts under Chapter 7 include:

  • Child support
  • Alimony
  • Student loans
  • HOA fees
  • Secured debts

Ultimately, Chapter 7 bankruptcy isn’t a magic wand that removes all debts, nor is it always a simple process. From an immense amount of paperwork to complicated court discussions, there are many parts to a Chapter 7 bankruptcy case that require expertise. That’s why hiring a reputable Auburn and Opelika bankruptcy attorney like David S. Clark can be an important factor in successfully filing for Chapter 7 bankruptcy.

What’s Happens After Bankruptcy?

So, while Chapter 7 bankruptcy acts as a second chance, what happens next? As mentioned, like any New Year’s resolution, starting fresh financially will take time. Here are a few “resolutions” for 2023 that could help:

Create a budget

Budgets come in many shapes and sizes because incomes come in many shapes and sizes. So, creating a personalized budget for your needs and wants is key to building a good foundation for your finances. 

Prepare for the unexpected 

Risk is, unfortunately, a part of life, especially in finances. Surprises can come from an illness, job loss, disability, death, natural disasters, or even lawsuits. Setting aside money each month to prepare for the unexpected means you won’t have to break the bank when one of these surprises happens. 

Auburn and Opelika Bankruptcy Attorney David S. Clark

David S. Clark is an experienced Auburn and Opelika Bankruptcy Attorney who understands the intricacies, complications, and stress of bankruptcy. If you need help navigating Chapter 7 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.

Nov 10
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Chapter 7 Bankruptcy Explained

By Bankruptcy Law, Chapter 7 Bankruptcy No Comments

Don’t let hard financial times ruin your holiday season, here’s how Chapter 7 bankruptcy could help. 

With the holiday season quickly approaching, debt can start to build up under the strain of expensive Christmas gifts, ill-judged credit card usage, and more. While the holiday season can be particularly stressful, any time of financial adversity can lead to heightened anxiety.

Yet, if you are an Auburn or Opelika resident overwrought by debt, there are tactics in place for you to gain a second chance. Perhaps the most common type of bankruptcy, known as “liquidation bankruptcy” or Chapter 7, allows you to regain control of your finances by having most of your unsecured debt, including credit card debt, medical bills, and personal loans discharged by a bankruptcy court.

Here is a quick but crucial explanation of Chapter 7 bankruptcy from David S. Clark, an experienced bankruptcy attorney in Opelika, 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

How Does Chapter 7 Bankruptcy Work?

Unfortunately, while Chapter 7 is an incredible tool, it is not a magic wand that automatically wipes out any debt you may have. Thus, before describing the inner workings of Chapter 7 bankruptcy, it is important to understand exactly which type of debt could be discharged. 

Dischargeable debts under Chapter 7 include:

  • Credit card balances (including overdue and late fees)
  • Medical bills
  • Personal and payday loans 
  • Mortgage or automobile loans for which you are unable to pay
  • Utility bills
  • Social Security overpayments
  • Veterans’ assistance loans and overpayments

Non-dischargeable debts under Chapter 7 include:

  • Child support
  • Alimony
  • Student loans
  • HOA fees
  • Secured debts

When you file for Chapter 7 bankruptcy, the court immediately places an automatic temporary stay on all current debts and appoints a dedicated bankruptcy trustee to your case. The automatic stay stops creditors from collecting payments, foreclosing on your home, or repossessing property. 

The trustee’s job is to oversee every aspect of your Chapter 7 bankruptcy case. Yet, unlike an attorney, they remain neutral for both you and your creditors. 

The Importance of a Local Chapter 7 Bankruptcy Attorney 

While filing a successful Chapter 7 bankruptcy on your own is possible, it’s not wise in every case. Unfortunately, bankruptcy may seem like a universal and simple process, but most of the time it’s not. 

From an immense amount of paperwork to complicated court discussions, there are many parts to a Chapter 7 bankruptcy case that require expertise. Ultimately, by hiring a knowledgeable bankruptcy attorney, your case could be more successful (which means you’re not only able to keep more property but also discharge more debts). 

David S. Clark is a dedicated bankruptcy attorney that handles Chapter 7 and Chapter 13 bankruptcy cases. Whether you’re in the Auburn and Opelika area or seeking a local firm that has your best interests at heart, David S. Clark has years of experience helping those in difficult financial times. For more information on Chapter 7 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.

Nov 02
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Is a Bankruptcy Attorney Necessary?

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

Bankruptcy can give you a fresh start when you are under the weight of overwhelming debt. Yet, much like any legal matter, the process of bankruptcy can be confusing.

Bankruptcy can give you a fresh start when you are under the weight of overwhelming debt. Yet, much like any legal matter, the process of bankruptcy can be confusing. You can file the case without legal help, known as going pro se, but the expertise of an experienced bankruptcy attorney is unmatched. 

Here’s how to decide if you need a bankruptcy lawyer and what to expect from David S. Clark, a bankruptcy attorney based in Opelika, Alabama. 

Different Types of Bankruptcy

While there are many types of bankruptcy, when filing as an individual, cases often fall under either Chapter 7 or Chapter 13.

Chapter 7, also known as a straight or liquidation bankruptcy is designed for Auburn or Opelika residents who are unable to pay monthly debt payments. In every Chapter 7 Bankruptcy case, the court assigns an impartial case trustee that faces your debtors for you. Ultimately, these appointed trustees aren’t working to make money for the creditors or to make your debts magically disappear. They seek the best route forward for both parties.

In a Chapter 13 bankruptcy case, also called a wage earner’s plan, the court approves a repayment plan that gives you a period of a reasonable amount of time to pay off your debt. This is usually a more desirable avenue for debt relief than Chapter 7 because it enables you to keep certain valuable assets out of a creditor’s reach. 

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

What’s The Point of a Bankruptcy Lawyer?

When it comes time to file for bankruptcy, it can seem like everyone is against you. A dedicated bankruptcy lawyer, like David S. Clark, seeks to not only fight for you but also to relieve the overwhelming aspects that often come with a bankruptcy case. 

Almost like a tour guide, a bankruptcy attorney can advise you about matters such as: 

  • Whether bankruptcy is a smart move or not
  • Which type of bankruptcy to file
  • How every step of the bankruptcy process will work
  • Details on the elimination of debt depending on the chapter of bankruptcy you file
  • Any and all paperwork as well as further discussions with creditors

It can be tempting to handle every step of bankruptcy alone, but just because you file for bankruptcy doesn’t mean your debt magically disappears. Without an experienced lawyer, you may make legal mistakes that carry long-term financial consequences.

David S. Clark, More Than Your Bankruptcy Attorney

Filing for bankruptcy is a significant decision, yet, as mentioned, it doesn’t mean the end of your finances forever. David S. Clark is an Opelika-based bankruptcy attorney who has helped countless Alabama residents find freedom from the weight of immense debt. 

Whether you are seeking to file for Chapter 7 or Chapter 13 bankruptcy, David S. Clark can help you every step of the way. For more information, 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.

Sep 12
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Chapter 7 Bankruptcy Benefits in Alabama

By Bankruptcy Law, Chapter 7 Bankruptcy No Comments

Chapter 7 Bankruptcy is a beneficial option in the bankruptcy code for any Auburn and Opelika resident looking for financial freedom

Many Opelika & Auburn residents are often hesitant to declare bankruptcy because of the incredible amount of myths that our culture places on bankruptcy. 

Bankruptcy, however, is a perfectly legitimate form of debt restructuring that has helped countless Americans not only find relief from their numerous debts–but also have a second chance.

Here are some of the benefits Chapter 7 Bankruptcy provides from David S, Clark, an experienced bankruptcy attorney serving any Auburn or Opelika resident seeking financial peace. 

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

Facing Creditors Alone? Chapter 7 Bankruptcy Can Help

In every Chapter 7 Bankruptcy case, the court assigns an impartial case trustee that faces your debtors for you. Ultimately, these appointed trustees aren’t working to make money for the creditors or to make your debts magically disappear. They seek the best route forward for both parties.

Though this case trustee is a helpful and necessary player in Chapter 7 Bankruptcy cases, he or she does not compare to the incredible help a bankruptcy attorney can provide. 

Chapter 7 Bankruptcy attorneys have a fiduciary duty, a duty to put your interests above your debtors or any others. Ultimately, an Auburn or Opelika bankruptcy attorney is an important asset because they will advocate explicitly for you.

David S. Clark is an Opelika bankruptcy attorney that not only advocates on your behalf but understands how to navigate the confusing nature bankruptcy presents.

Discharge Debt With Chapter 7 Bankruptcy

A discharge in Chapter 7 bankruptcy cases is one of the most significant protections offered to a debtor filing for bankruptcy. 

When a person files for bankruptcy, he or she gives immense power to the courts, the court-appointed trustee, and creditors. This is a frightening step for many debtors, and rightfully so. Yet, since a Chapter 7 discharge frees debtors from the personal liability for many of their debts and immediately prevents creditors from taking collection action against them, there is no reason to fear. 

Given the nature of Chapter 7 bankruptcy as a means by which debts can be paid, not all debts are immediately discharged. This is when it is necessary to hire an experienced Auburn and Opelika bankruptcy attorney who understands the ins and outs of dischargeable vs. nondischargeable debt in Chapter 7 bankruptcy. 

The Difference With David S. Clark

Chapter 7 bankruptcy can seem complex because it is. This unfortunately makes a lot of the benefits that come with Chapter 7 out of reach for those that lack the extensive knowledge that really only comes with a law degree. 

That is why hiring a reputable Auburn and Opelika bankruptcy attorney like David S. Clark can be an important factor in successfully filing for Chapter 7 bankruptcy.

If you are looking to file Chapter 7 Bankruptcy in Auburn or Opelika, AL contact David S. Clark today to get your life back on the path toward financial freedom!

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.

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