When it comes to understanding bankruptcy laws, it’s a good idea to consult an experienced bankruptcy attorney. With over 25 years of combined experience under our belts, the attorneys at David S. Clark, Attorney At Law, LLC can shed light on bankruptcy laws. We’re here to help you navigate through the sometimes-stormy financial challenges you face, and we do it with dignity. We have real legal solutions for people laden with debt solutions that include bankruptcy, credit counseling, representation for issues with the IRS, foreclosure and more.
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Bankruptcy Law Changes Since 2005
In October of 2005, bankruptcy laws changed. These changes garnered national media attention, but reports often described the changes as challenging and responsible for making bankruptcy filing increasingly difficult. It turns out, however, that these allegations were just that: allegations. The truth of the matter is that Chapter 7 bankruptcy and Chapter 13 bankruptcy were altered very little. Their changes included the following:
- income requirements
- means testing if income requirements were not met
How the Changes Impact You
When the laws changed in 2005, many people were led to believe two major fallacies. First, you could no longer wipe out all of your unsecured debt by filing Chapter 7 bankruptcy. And second, you would be required to repay all of your debts if you filed Chapter 13. Both of these ideas were and still are untrue.
About Chapter 7 Bankruptcy
Financial hardships can strike any person at any given moment. Whether they stem from divorce, unemployment, sudden and unexpected medical expenses or a number of other causes, these hardships can quickly drain your cash reserves and become ruinous to your financial well-being. If you find yourself encumbered with debt that you cannot repay, it’s time to seek the legal expertise of David S. Clark Attorney at Law LLC.
We have offices that serve the needs of people who desire debt relief in the form of a Chapter 7 bankruptcy. We can provide you with the information you need, including Alabama state exemptions. Before you make a decision regarding your bankruptcy declaration, get the facts from an experienced Chapter 7 bankruptcy attorney. We have 25 years of combined experience with bankruptcy law, have helped numerous people and families gain a fresh start. We can help you, too.
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is also known as liquidation bankruptcy. It usually does not require you to repay any unsecured debt, but rather it serves as a legal elimination of it. Unsecured debts that can be wiped away with Chapter 7 bankruptcy include:
- Credit cards
- Medical bills
- Most judgments and garnishments
- Repossession debt
- Eviction or broken lease debt
- Some back taxes
These unsecured debts can be eliminated through legal discharge. At David S. Clark, Attorney At Law, LLC we focus on bankruptcy and debt solutions so we know exactly what legal protection you may be granted under Chapter 7 bankruptcy laws.
Qualifications for Chapter 7 Bankruptcy
A Chapter 7 discharge is not a right that everyone is qualified for, but most people who are experiencing financial challenges will meet the requirements to file. Bankruptcy laws changed in 2005; they require that people seeking Chapter 7 protection submit proof of income. If your income is at or below the state median income level, you may qualify for Chapter 7. If, however, your income exceeds the state median level, you may be required to undergo means testing.
Means testing measures your ability to repay some of your unsecured debt with disposable income, or income that may be left over at the end of the month after all necessities are paid. David S. Clark, Attorney At Law, LLC offers a consultation and evaluation, and during our time together we can determine whether or not you meet the Chapter 7 bankruptcy filing requirements. If you are looking for a chapter 7 bankruptcy attorney, we’ve got you covered.
About Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a court protected repayment plan. Under the law, you can have loan agreements modified, and even eliminate significant portions of unsecured debt. It’s not uncommon for people to mistakenly believe that Chapter 13 requires you to repay all of your creditors in full, and with accumulated interest. This, however, is not the case. Chapter 13 allows you to repay only the percentage that you and your family can reasonable afford based on the means test and the equity in your assets.
In addition, you may also restructure some secured loans.
Why You Need a Chapter 13 Bankruptcy Attorney
Determining if you meet the requirements to file bankruptcy can be confusing. David S. Clark, Attorney At Law, LLC provides a complimentary consultation and evaluation for prospective clients, and during the evaluation we can determine if you meet the requirements to file bankruptcy.
Get Started Today
Financial hardships are difficult to face on your own. Rather than spending sleepless nights worrying about what you can do, contact David S. Clark, Attorney At Law, LLC. We can provide you with legal solutions for debt. If there is one thing your creditors can’t take away from you, it’s your dignity. Contact us today to schedule your free consultation and evaluation.