Frequently asked questions about bankruptcy and how an experienced bankruptcy attorney can help.
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.
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.
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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!
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.