How Much Does it Cost to File Chapter 7 in the State of Alabama?
Bankruptcy is a legal process in which a person or company is unable to repay its existing financial obligations. Its procedure begins with a petition filed either by the debtor or creditors. All of the debtor’s assets are measured and analyzed, and some of the assets may be utilized to repay some of the remaining debt. A bankruptcy approach is an option for individuals and organizations to be freed from financial obligations while allowing creditors to receive payment. It is handled in federal courts, and the regulations are laid out in the United States bankruptcy code. There are many sorts of bankruptcy, which are categorized by their chapter in the United States bankruptcy code. Bankruptcy in Mobile, Alabama can provide you with a new beginning, but it will remain on your credit history for several years and make future borrowing difficult.
Types of Bankruptcy
The law of bankruptcy in the United States provides that either an individual or corporation can file for Chapter 7 bankruptcy, where they can liquidate their assets. When you file for Chapter 7, all recovery attempts from all creditors must be halted immediately. The bankruptcy Mobile AL law of Chapter 11 indicates that a firm will try to modify its debts in order to meet its financial commitments. This bankruptcy code is solely for businesses and not for people. An important quality of Chapter 11 is that it shows the company’s will to repay its obligations. It allows them to stay in business while attempting to find ways to pay off their obligations. The Chapter 13 plan seeks to reorganize existing resources or cash flow in order to pay off debts. It is not for companies and partnership entities, but individuals can file for Chapter 13 bankruptcy.
Cost to File Chapter 7 Bankruptcy in Alabama
A bankruptcy filing fee is collected by the court. Although the bankruptcy chapter 7 filing cost is around $340. There are other charges after filling out the case, like paying a Mobile AL bankruptcy attorney to handle the case. For chapter 7 bankruptcy, it is obligated to pay the full amount in advance to the bankruptcy attorney Mobile AL.
Cost to File Chapter 13 Bankruptcy
The filing fee for bankruptcy chapter 13 is approximately $313 and it is included as part of your repayment plan through the bankruptcy court. In chapter 13 bankruptcy, the fees will also include an additional sum to cover the chapter 13 trustees administrative expenditures. This is usually around 7%.
How an Attorney Can Help
On declaring bankruptcy, there are several laws and requirements to comply with and many documentation hassles that need to be done. The Loris Bankruptcy Law Firm’s Mobile AL bankruptcy attorney and bankruptcy attorney Selma can assist with the legal requirements related to the specific case. Loris Bankruptcy Law Firm‘s legal team can assist in interpreting the legal complexities associated with bankruptcy in Mobile, Alabama. Loris Bankruptcy Law Firm will also advise and guide you in avoiding creditor intimidation and ensuring that you are not being exploited. Not only that, our bankruptcy attorney in Mobile, Alabama can provide you with financial advice and ideas once you have been discharged from bankruptcy. Hire our knowledgeable Mobile AL bankruptcy attorneys to walk you through the whole bankruptcy process. Our lawyers, legal assistants, and administrative staff are available to answer any questions regarding bankruptcy.