How Long Does Bankruptcy Take in AL?

upset stressed older latin woman get bad surpriseThere are different types of bankruptcy that you can file. The length of time depends on the type of bankruptcy you file. Chapter 7 and Chapter 13 bankruptcies are the most common consumer bankruptcies filed in the U.S., including AL. If you need to file either one, it is important that you hire a bankruptcy attorney in Mobile County affiliated with Loris Bankruptcy Law Firm to help you through the process. It is also important that you know the difference between the two, the length of time, and costs associated with each.

Chapter 7 Bankruptcy in Alabama

Debt consolidation in Mobile AL can come in many forms. Chapter 7 bankruptcies are also known as a straight bankruptcy. In these cases, individuals who file will not lose their vehicle or homes by taking advantage of exemptions. However, certain belongings may still be at risk.

When filing Chapter 7 bankruptcy in Alabama, it is important to keep the following in mind:

  • The process goes quickly. You may be able to receive a bankruptcy discharge in as little as 120 days.
  • It is the cheapest.
  • You will have to qualify for this bankruptcy.
  • It remains on your credit report for 10 years.

Chapter 13 Bankruptcy in Alabama

Chapter 13 bankruptcy is also referred to as a wage earner’s plan or debt consolidation. Typically, you will have to pay back a certain portion of your unsecured debts via a payment plan.

When filing Chapter 13 bankruptcy in Alabama, there are some things you should keep in mind:

  • The process is relatively slow and it can take anywhere between 3 and 5 years.
  • It is more expensive than Chapter 7, usually the attorney fees are $2,400-$4,000
  • You will get to keep your assets most of the time.
  • It remains on your credit report for 7 years.

Debts that can be Discharged

When filing for bankruptcy, it is important to note which debts will be completely eliminated. The goal of bankruptcy is to gain a fresh start, so it will be helpful if you understand the types of debts that qualify for complete elimination when filing.

Most debts can be discharged, including medical debts, unsecured credit cards, personal loans, old utility bills, old lease payments, and judgment debts.

Additionally, there are certain debts that cannot be discharged, in chapter 7 but can be paid back in chapter 13, such as child support, back alimony, debts owed to the government, etc.

How an Attorney Can Help

AL Mobile attorneys can help you if you are filing for Chapter 7 or 13 bankruptcy. During your bankruptcy, your attorney will be able to do all of the following:

  • Complete the schedules and additional paperwork. Many pages of financial data will need to be filed. These documents consist of your income, expenses, debt, assets, etc.
  • Guide you through the bankruptcy process. An AL bankruptcy lawyer will be able to explain and prepare you for what lies ahead and the steps you must take in order to qualify for a discharge.
  • Provide complete and accurate testimony. You will have to sign all bankruptcy paperwork under penalty of perjury and explain to the court that all information is correct. Your attorney will be with you to make sure that your testimony is correct and complete.
  • Handle creditors who violate the automatic stay. Many creditors don’t know when to stop collecting. Once a creditor violates the automatic stay, your attorney can demand compliance or ask the court to hold that creditor in contempt.
  • Negotiate with your creditors. If you are filing for bankruptcy Chapter 7 in Mobile AL your attorney will be able to negotiate a reaffirmation agreement or a redemption with a secured creditor that will enable you to keep your car or house. With Chapter 13, your attorney can negotiate with your creditors regarding payment terms, etc.