Financial Tips

If you’re an Auburn or Opelika resident struggling with debt, bankruptcy may seem like a daunting but necessary option to get a fresh financial start. However, due to the seemingly complex nature of bankruptcy, many people, naturally, have questions and concerns about the bankruptcy process. 

Below are a few of the most commonly asked questions about bankruptcy to help you understand the process and make informed decisions about your financial future. 

So, whether you’re an Opelika resident considering bankruptcy as a way to manage your debt or you simply want to learn more about the process, here are a few of the answers you may need from David S. Clark, an experienced bankruptcy attorney in Opelika, Alabama. 

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!

Important factors to consider when seeking the “best” bankruptcy attorney. 

Due to expensive medical bills, credit card debt, divorce, job loss, or other unexpected expenses, bankruptcy often goes hand in hand with hard financial times that can be overwhelming for anyone. 

Thankfully, bankruptcy does not mean the end of your finances forever, in fact, it often means a fresh start. Although, despite the chance for a clean slate, declaring bankruptcy involves a deep dive into your financial history, mountains of paperwork, and confusing legal discourse that can make it seem impossible. 

Yet, with a dedicated bankruptcy attorney, you don’t have to go through it alone. So, when it comes time to choose a bankruptcy attorney in Alabama, who should you call? 

Here at David S. Clark, we may be a little biased about who the “best” bankruptcy attorney in Alabama is, but being the best isn’t our end goal. Our goal is not only to help those in the depths of financial ruin through bankruptcy but to also bring a level of compassion to each of our clients. 

So, before you choose a bankruptcy attorney, here are a few “must-haves” your attorney should have from the experienced team at David S. Clark in Opelika, Alabama.

Dedication to Your Needs

At the end of the day, your bankruptcy attorney should be someone you are comfortable with. Look for an experienced attorney who will not only represent you but will listen to you to best understand your unique situation. 

Also, don’t make your decision solely on price. Bankruptcy requires careful preparation and understanding of legal issues. Misunderstandings of the law or making crucial mistakes in the process could be the difference in the success or failure of your bankruptcy case. 

Local Experience in Chapter 7 & Chapter 13 Bankruptcy

There are a few different distinctions when it comes to Chapter 7 and Chapter 13 bankruptcy. The biggest difference is that Chapter 7 focuses on discharging “unsecured” debt such as credit cards, personal loans, or medical bills while Chapter 13 allows you to catch up on “secured” debts like your home or car while also discharging any unsecured debt.

Beyond having familiarity and experience with the distinctions of bankruptcy laws, a bankruptcy attorney should also be local. By hiring an attorney like David S. Clark, who is local to Auburn and Opelika, Alabama, you can have faith knowing they will use their knowledge of the local court procedures and personnel to your benefit.

David S. Clark – Your Auburn or Opelika Bankruptcy Attorney

So, while there is technically no answer to who the “best” bankruptcy attorney is, through these helpful considerations, we hope that your path to financial peace is closer than ever before. 

For more information on how the experienced team at David S. Clark can help you recover from financial ruin with Chapter 7 or Chapter 13 bankruptcy in Auburn or Opelika contact David S. Clark today!

Filing for bankruptcy in Alabama can be overwhelming–but it doesn’t have to be.

Facing financial challenges is a part of life. But if you’re one of the millions struggling financially due to a job loss, illness, or another event in Alabama, bankruptcy was created to help. Here, you’ll find an explanation of Chapters 7 and 13, how to file for bankruptcy, and that you don’t have to do it alone. 

Of course, it is important to remember that bankruptcy is a complicated law that can be confusing without a professional bankruptcy attorney’s proper guidance and necessary advice. If you are an Auburn or Opelika, Alabama resident, contact the bankruptcy attorneys at David S. Clark today!

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

Chapter 7 Bankruptcy is also known as “Entitled Liquidation.” This means that a court supervised trustee takes over the assets of a debtor’s estate, turns them into cash (liquidates them), then distributes funds to creditors. In Chapter 7 the debtor has rights to make certain assets exempt.

Since the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 those seeking Chapter 7 Bankruptcy must undergo a “means test” to determine whether or not they qualify. There are income thresholds throughout Alabama that, if a debtor exceeds, will disqualify the debtor from being able to declare Chapter 7 Bankruptcy.

Chapter 13 Bankruptcy is also known as a “Wage Earner’s Plan”. This is usually a more desirable avenue for debt relief than Chapter 7 because it enables a customer to keep certain valuable assets out of a creditor’s reach. The debtor then proposes a plan with a help of a bankruptcy attorney to repay creditors over a reasonable period of time.

Will Filing Bankruptcy in Alabama Erase My Debts?

Bankruptcy has the ability to wipe out many types of dischargeable debts. When you receive your discharge at the end of your case, you are no longer legally required to pay any of these debts and creditors cannot come after you to collect them. These typically include:

• Credit Card Debt
• Medical Bills
• Payments on Motor Vehicles
• House Payments
• Debts Related to Your Business
• Personal Loans

But you can’t discharge all debts. Nondischargeable debts, like student loans, child support, fines, and taxes, will not be included in your bankruptcy discharge. Ultimately, dischargeable debts exist because the benefit to a creditor and society as a whole outweighs the benefit that the debtor would gain if their debts were completely discharged. 

Hiring a Bankruptcy Lawyer in Alabama

With the extensive paperwork, financial documentation, laws, and Alabama procedures present in a bankruptcy filing, hiring an experienced bankruptcy attorney to represent you in bankruptcy is very important.

With over 25 years of combined experience, the attorneys at David S. Clark are here to help any Auburn or Opelika resident navigate through bankruptcy. For more information on how you can find financial peace through bankruptcy, contact David S. Clark today!

There are a lot of myths surrounding bankruptcy that can cause unnecessary hardship and stress. 

There are a lot of misconceptions that Auburn and Opelika residents have about the bankruptcy process, including how filing bankruptcy will affect them moving forward. Friends, family, and colleagues are all going to weigh in; however, it is always better to trust the opinions and advice of trained professionals like David S. Clark, an experienced bankruptcy attorney in Opelika, Alabama. 

Myth 1: Filing For Bankruptcy Means I Will Lose Everything 

Today’s bankruptcy laws offer every debtor many “exemptions” so that any Alabama resident may protect as much of their property as possible. While Chapter 7 bankruptcy is referred to as “liquidation,” it is much less common for one’s assets to be at risk. 

Generous exemptions exist and can limit risk related to your residence, vehicle, some cash, retirement accounts, and most household goods. Ultimately, most property that is considered necessary for life will be exempt from Chapter 7 bankruptcy.  

Myth 2: Everyone Will Know I’m a Failure

Bankruptcy is often due to circumstances beyond an individual’s control, such as divorce, job loss, and major illness. Bankruptcy is rarely the result of irresponsible financial behavior. Rather, filing for bankruptcy relief shows an understanding of one’s financial issues and a willingness to address them.

It is true, however, that bankruptcy is a matter of public record. There may be some reporting regarding your bankruptcy filing but most people will not be privy to this information unless they are specifically looking for it. As long as you are careful who you share this information with, you should not have to worry about everyone knowing about your bankruptcy and financial status.

Myth 3: I Will Never Get Another Line Of Credit

While debtors who have filed for bankruptcy typically find higher interest rates from credit lenders, the focus should be more on keeping new credit cards paid off and rebuilding your credit score organically.

While you will see a decrease in your credit score following your decision to file for bankruptcy, it doesn’t mean you will never have credit again–it’s called a fresh start for a reason. David S. Clark not only understands the overwhelming stress bankruptcy can bring but offers professional financial advice on how to recover. 

Myth 4: Filing For Bankruptcy Is Too Difficult

While it is technically possible to file for bankruptcy on your own, it is extremely difficult. Filing for bankruptcy requires time, money, paperwork, and expertise that is necessary in order to ensure the financial peace Auburn or Opelika residents seek. 

In contrast, David S. Clark is an experienced bankruptcy attorney that can do all of the work for you while offering legal aid throughout the bankruptcy filing process. 

Filing for Chapter 7 or Chapter 13 bankruptcy can seem like a daunting task, but it doesn’t have to be. David S. Clark is a bankruptcy attorney in Auburn, Alabama that can help you get the financial relief you need. Contact David S. Clark today to start your journey towards financial freedom!