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Dec 20
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Picking a Local Bankruptcy Attorney vs. Large National Firms

By Bankruptcy Law, Financial Tips No Comments

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.

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

  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.

  1. 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.

  1. 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.

  1. 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.

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 28
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Back to Basics: The Benefit of an Automatic Stay

By Bankruptcy Law, Financial Tips No Comments

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. 

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 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! 

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 16
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Back to Basics: Bankruptcy and Wage Garnishments

By Bankruptcy Law, Financial Tips No Comments

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. 

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 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.

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 26
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Back to Basics: What To Do After Bankruptcy

By Financial Tips No Comments

Here is a quick breakdown of what to do after bankruptcy is complete from David S. Clark, an Opelika-based personal bankruptcy attorney who offers help for those seeking Chapter 7 or Chapter 13 bankruptcy in Lee County, Alabama. 

Unfortunately, there isn’t much information about what happens after bankruptcy, and many Auburn or Opelika residents are often faced with a scary question: “What do I do now?”. Ultimately, life after Chapter 7 or Chapter 13 bankruptcy holds a lot of uncertainty and, truthfully, will come with a few hardships (such as rebuilding your credit). However, life after bankruptcy is actually the key to your financial “reset” or “fresh start”. Here is a quick breakdown of what to do after bankruptcy is complete from David S. Clark, an Opelika-based personal bankruptcy attorney who offers help for those seeking Chapter 7 or Chapter 13 bankruptcy in Lee County, 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

Adapt Good Saving Habits

If you’ve been in a history class, then you probably understand the phrase “history repeats itself”. In this situation, it’s important to avoid this in every way possible, especially after facing bankruptcy. So, the best way to avoid going bankrupt again is to establish good and superior financial habits. These are called habits for a reason, and it may take some growing pains, but these choices are crucial to rebuilding your finances!

Create a Budget & Stick To It

More than anything, life after bankruptcy can be stressful and confusing, so planning your finances around a simple budget can help relieve the pressure around you. So, take time to establish a budget that works for you and fits within your unique wants and needs. 

Rebuild Your Credit, Rebuild Your Financial Freedom

To achieve a new financial life after Chapter 7 or Chapter 13 bankruptcy, it is very important to take the necessary steps to rebuild your credit. Rebuilding your credit can be accomplished by making your payments on time, opening a secure credit card and gaining a credit-builder loan.

Payment history accounts for 35 percent of your overall FICO credit score calculation. Therefore, it is highly imperative that you are consistent with paying your bills on time when rebuilding your credit. This goes to show that you are becoming financially responsible.

You should begin by reducing your dependence on credit cards in general, though the use of a secured credit card can help you gain a sense of trust through the eyes of your creditors. A secured credit card is usually backed by a savings account in your name, where the money serves as collateral and establishes a spending limit. Once again though, it is still just as important to make those on-time payments with your secured credit card.

Credit-builder loans are just another great way for you to continue rebuilding your credit. With this type of loan, you essentially make fixed payments to your lender and then get access to the loan amount at the end of the loan’s term. Credit-builder loans provide you with another opportunity to show that you are financially responsible enough to consistently make on-time payments.

Your Chapter 7 and Chapter 13 Bankruptcy Attorney – David S. Clark

If you are an Auburn or Opelika, Alabama resident searching for a new start with Chapter 7 or Chapter 13 personal bankruptcy, David S. Clark has years of experience serving this community. Contact David S. Clark today for more information!

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.

Apr 11
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Budgeting Tips to Prevent Bankruptcy

By Financial Tips No Comments

The best way to prevent bankruptcy is through fiscal responsibility. Building healthy budgeting routines is one of the keys to staying above water with your finances.

Finding balance with your finances can be a challenging pursuit. When spending gets out of control or simply more than you can afford, bankruptcy could be looming. That’s why it’s so important to develop positive financial skills like responsible budgeting to help prevent bankruptcy. Here are some of the most effective and simple budgeting tips for you to implement when looking to prevent bankruptcy.

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

Live Within Your Means

Living a life of financial excess can seem tantalizing, but maintaining responsible spending habits and staying out of debt is a much more critical and rewarding practice. Know your financial means, and don’t spend beyond them. Learn to say no to certain expenses in order to save money and avoid bankruptcy. One of the easiest ways to fall into bankruptcy in Alabama is to live outside of your means.

Paying down debt, such as credit card debt, medical debt, or housing money that you owe is a much more worthwhile practice than spending incessantly on unnecessary luxuries. The effects of bankruptcy can be difficult and long lasting, so learning to budget effectively is crucial. Living within your means leads to a more enjoyable life in the long run. Without having the threat of debt and bankruptcy looming over your shoulder, you will have the peace of mind that allows you to enjoy life more freely. 

Set a Grocery/Food Budget

Tracking how much money you typically spend at the grocery store and eating out per week is a great first step. Once you establish your typical spending habits, you can analyze them and see where you can start to save. Bankruptcy can sneak up on you if you don’t prepare for it, so be sure to plan accordingly. 

Look for ways to cut down on food spending. Some common ways to save money and avoid bankruptcy are limiting the number of times you eat out per week, bringing lunch to work, changing your diet, and more. By tracking how much you have been spending and finding ways to lower the amount of money you spend on food, you will be taking a valuable step in preventing bankruptcy.

A good ballpark to aim for is to not spend more than 10-15% of your take-home income on food, depending on your needs. By setting a fixed budget for food, you will be less prone to impulsive spending, thereby saving more money. Remember, setting a grocery budget won’t save you money unless you stick to it. Hold yourself and your family accountable and encourage each other to join in the mission of lowering the risk of bankruptcy.

 

Budget for Your Place of Living

A general rule of thumb is that your home should cost you no more than 30% of your income. This is important to keep in mind when preventing bankruptcy, as home payments and rent can be some of the most expensive you will typically have. Apply this general budgeting rule and see if your current living situation fits it or not. If you are spending too much of your income on housing, changing to a more affordable situation can be a worthwhile method of preventing future bankruptcy. 

This method of preventing bankruptcy can be more challenging than others due to limited options & other reasons. It can also require more effort than some of the more instant and easy methods of saving money on this list, but because of the potentially high dollar amount you may be spending on rent or house payments, it is absolutely an aspect of your budget that needs to be examined to best help prevent bankruptcy in the future.

 

Be Aware of Your Spending

One quick way to lose money and increase the risk of bankruptcy is by being unaware of repeating services and subscriptions that you are automatically charged for. Streaming services, online journals, magazine subscriptions & more can easily be forgotten about and begin accumulating heavy payments without immediately being noticed. Make sure you monitor your credit and debit card usage through online tracking systems to make sure you aren’t being charged for services that you don’t use.

Consider the monthly paid subscriptions that you currently pay for, and look to see if you could go without any of them, especially if they are expensive. Free trials that then automatically roll into paid subscriptions are common causes of financial hardships. Be aware of your spending so that bankruptcy doesn’t unexpectedly creep up on you. 

 

Adopt Healthy Saving Habits

Everyone’s budget is different, but try consistently putting money away for an emergency, even if the amount is small. Setting a routine saving plan for every paycheck is a great way to consistently save money that can be used in the case of a financial emergency. Another good rule of thumb is to try saving 20% of your monthly income every month. Building up a healthy amount of savings is a great way to prevent bankruptcy and other potential financial hardships.

David S. Clark: Auburn and Opelika’s Experienced Bankruptcy Attorney

Developing strong budgeting habits and fiscal responsibility is one of the most effective and important ways to prevent bankruptcy in Alabama. If you have financial difficulties and face the possibility of bankruptcy in Auburn or Opelika, Alabama, David S. Clark can help you find relief. Don’t face the burden of bankruptcy alone.

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.

Mar 29
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Top 4 Causes of Unplanned Bankruptcy

By Bankruptcy Law, Financial Tips No Comments

The post-COVID world is seeing an unprecedented rise in bankruptcy cases across the country. Now that many of the COVID regulated bankruptcy stays have been lifted, and federal grant programs are no longer providing cash-on-hand, many people are filing for bankruptcy. Know that you are not alone in your financial crisis, and that if you’ve experienced any of these 4 things, you are in the most common situation for people needing a local bankruptcy law firm. These bankruptcy causes are some of both the most common causes of bankruptcy, but also the areas we, with David S. Clark, are the most familiar with.

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 Expenses

Medical expenses rank among the leading causes of bankruptcy nationwide. Even with insurance coverage, the financial strain of a serious illness or injury can be overwhelming for any family, regardless of how many bread-winners are in the home. When medical bills pile up, seeking guidance from a local bankruptcy attorney can provide clarity on your options and help you navigate the complexities of bankruptcy law with ease.

Job Loss

Losing a job or experiencing a significant reduction in income can send shockwaves through your financial well-being. No one plans on losing a job, but when it happens, it’s important to understand that there is still a path forward to financial recovery with a bankruptcy attorney that’s experienced in this sort of crisis situation.

Excessive Debt

The elephant in the room, excessive debt, whether from credit cards, loans, or mortgages, can weigh heavily on your financial health. If you’re struggling to keep up with monthly payments, consulting with a local bankruptcy attorney can provide insights into how bankruptcy can offer a fresh start and relief from overwhelming debt burdens. Many people have noble and good intentions for their debt. Owning a home is a noble pursuit, but many times people find themselves in a financial situation where the home they want isn’t the home they can afford. A bankruptcy law firm that’s familiar with the local real estate market can make a dramatic impact in the quality of legal services offered.

Divorce

Divorce or separation can bring emotional and financial challenges, often leading to bankruptcy for those involved. With local legal expertise, a bankruptcy attorney can guide you through the complexities of asset division, alimony, and child support payments, helping you protect your financial interests during this difficult time.

Even if your particular situation doesn’t line up with these 4 most common causes for bankruptcy, the experienced and professional help of the attorneys with David S. Clark can help you get back on your feet. As one of the highest rated attorneys in the Auburn/Opelika area according to Google, we are proud to offer our services to anyone that needs our help.

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 31
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The Role of Bankruptcy in Resolving Medical Debt

By Financial Tips No Comments

How bankruptcy can help when medical debt becomes unbearable.

Throughout Alabama, medical debt can quickly spiral out of control, leaving individuals and families facing overwhelming financial burdens. Specifically, almost 20% of all residents in Alabama are people with medical debt in collections. 

Fortunately, bankruptcy can serve as a lifeline for those struggling with medical bills, offering a path to financial relief and a fresh start. Below is a breakdown of the role of bankruptcy in resolving medical debt, how a bankruptcy attorney can help, and more from David S. Clark, a Chapter 7 and Chapter 13 bankruptcy attorney in Opelika, Alabama. 

The Impact of Medical Debt

Unfortunately, medical debt can arise unexpectedly due to emergencies, illnesses, or lack of health insurance. Yet, even with insurance, out-of-pocket expenses such as deductibles, copayments, and non-covered services can accumulate rapidly, causing a great amount of stress. 

With that in mind, it can be hard to live with the weight of medical debt around you or your family. Thankfully, you are not alone and there are options available! 

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 as a Solution

Bankruptcy, particularly Chapter 7 and Chapter 13 bankruptcy, offers viable solutions for addressing medical debt and gaining a second chance regarding finances.

Before breaking down these chapters of bankruptcy, though, it is important to know that bankruptcy is not always a clean slate. Furthermore, every bankruptcy case is different, so talk to an experienced bankruptcy attorney about your options. 

Chapter 7 Bankruptcy 

Also known as “liquidation bankruptcy,” Chapter 7 allows eligible individuals to discharge unsecured debts, including medical bills, credit card debt, and personal loans. 

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.

Chapter 13 Bankruptcy

Alternatively, Chapter 13 bankruptcy involves creating a court-approved repayment plan to repay a portion of debts over a specified period, typically three to five years. Medical debt can be included in the repayment plan, allowing debtors to manage their obligations while retaining assets such as a home or vehicle.

Navigating the Bankruptcy Process in Opelika, Alabama

As mentioned above, 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!

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.

Nov 28
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After Bankruptcy: How to Establish Responsible Financial Habits

By Financial Tips, Personal Finance No Comments

The reality is, life after bankruptcy completely depends on your attitude.

Life after bankruptcy can look many different ways. For some, it is a scary time where money is tight and it seems like you are still trying to dig out of a bottomless hole. For others, it is a time of hope and opportunity; a chance to start again. The reality is, life after bankruptcy completely depends on your attitude. If you want to get your financial situation back on track and build good habits that foster financial stability, all you have to do is make a plan and stick to it. Staying disciplined can be challenging and stressful, but when you establish responsible financial habits after bankruptcy, you give yourself a chance to reach financial freedom again. Here are the best ways to do just that, from the Auburn & Opelika bankruptcy law experts at David S. Clark.

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

Create a Realistic Budget

One of the most intuitive and important steps in establishing healthy and responsible financial habits following Chapter 7 or Chapter 13 bankruptcy is to create a budget, and stick to it. The act of simply creating a budget for your spending habits means nothing if you don’t stay disciplined and follow the budget. 

Some important aspects of building a budget include knowing your regular income, knowing your regular expenses, tracking your spending, and setting realistic, achievable goals. Planning for a budget requires commitment and consistency, whether you are old school and want to take the approach of allocating envelopes for monthly expense categories, or want to use more technologically advanced methods, your budget will only serve you as well as you let it. For a more detailed look at making a budget, click here.

Start Saving Money & Create an Emergency Savings Fund

An obvious step in the right direction for those recovering from bankruptcy is to prioritize saving money. Emergency savings funds are important to have, and in addition to said emergency savings funds, it is very important to be regularly putting money away for the future, even if there aren’t any looming financial crises on the horizon. Open a savings account and start earning interest. Make it an absolute priority to live below your means. This is an essential fiscally responsible practice for anyone looking to have a healthy financial future. 

Apply for New Lines of Credit

Applying for new lines of credit after Chapter 7 or Chapter 13 Bankruptcy is also an important step to take. Although interest rates may be higher following bankruptcy, it is still important to begin building back good credit. It may take an extended amount of time before you are approved to open new lines of credit post-bankruptcy, but once you can, it is absolutely recommended that you do so. 

Credit builder loans, which are intended to help you rebuild credit following bankruptcy, are another great way to start rebuilding a healthy credit score and positive financial practices. Also, consider obtaining a secured credit card, which is backed by the balance in your savings account. This balance determines your credit limit, making it a safer option than using traditional credit cards.

Make Payments on Time

In order to keep building credit and instilling responsible financial habits, making payments on time is crucial. By avoiding late fees and paying your bills on time, or earlier, you will not only be building credit, but you will also be saving money! Timely payments cannot be overlooked as a critical part of being financially responsible after bankruptcy. Without this, you can face even higher interest rates, which can be crippling when trying to rebuild financial security. 

Keep a Low Credit Card Balance

Keeping a low credit card balance is a simple, effective way to maintain responsible spending habits. Monitoring your credit utilization ratio and keeping it low will help creditors see that you are making responsible financial decisions. Keeping your credit utilization ratio means that you are not using your line of credit up to its limit. Setting spending limits for yourself– and sticking to them– will help you establish responsible financial habits.

Avoid Quick Loans

Quick loans, where individuals can almost always receive cash, involve incredibly high interest rates, and often trap financially vulnerable individuals in another cycle of debt following bankruptcy. Though they can be tempting when payments are due and cash is short, find safer and less predatory solutions. 

Some examples of better ways to solve a cash shortage include borrowing from a church or nonprofit, or finding additional short term streams of revenue, like online sales or third-party food delivery services. There are many ways to make an honest dollar these days that only take a little time. Read here to learn more financial tips and alternatives to quick loans.

David S. Clark, Auburn & Opelika Bankruptcy Attorney

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!

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 18
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A Breakdown of Bankruptcy & Wage Garnishment in Alabama

By Bankruptcy Law, Financial Tips No Comments

Hiring an attorney can often add undue stress to an already fractious time. Bankruptcy cases are no different. 

Bankruptcy can be scary. The thought of losing your home, car, and other possessions is certainly intimidating. And to add insult to injury, when considering bankruptcy, debt collectors can garnish your wages. Thankfully, many of the common misconceptions about bankruptcy are untrue. In fact, bankruptcy can significantly help those with overwhelming personal debt in many ways. One such way is protection from wage garnishment. 

Here is a quick breakdown on bankruptcy and wage garnishment 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

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.” This means that your pay goes to a creditor instead of you. Some common forms of garnishments can be child support, alimony, student loans, and income taxes. 

Wage garnishments can be embarrassing, financially crippling, and difficult to stop. Some forms of wage garnishment can even take up to 50% or more of your wages. One of the few ways to effectively fight against wage garnishments is declaring bankruptcy. 

Chapter 7 bankruptcy and wage garnishments

When you declare Chapter 7 bankruptcy, wage garnishments are stopped. IRS garnishments are also temporarily stopped. The automatic stay that is enacted upon declaration of Chapter 7 bankruptcy will temporarily halt all collections. This gives you a break from the financial stress that comes with wage garnishments. From there, law professionals can help you regain your financial footing and instill fiscally responsible habits. 

Chapter 13 bankruptcy and wage garnishments

When you declare Chapter 13 bankruptcy, wage garnishments are also stopped. Much like declaring Chapter 7 bankruptcy, declaring Chapter 13 bankruptcy also issues an automatic stay that halts all collections. Stopping wage garnishments is one the most impactful ways that declaring bankruptcy helps those in overwhelming debt. Once wage garnishments have been halted, you have time to get your financial situation back to a manageable state.

Through the Chapter 7 and Chapter 13 bankruptcy processes, and with the help of legal professionals, 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 absolutely 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 area resident in financial distress, let us serve you and help you get back on your feet. Contact us today to begin your journey back to 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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