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.
