Key Factors to Get Your Bankruptcy Filing Approved

Young businesswoman, company worker shaking hands congratulating customer approvedFacing financial difficulties can be a daunting experience. Declaring bankruptcy, whether Chapter 7 or Chapter 13, offers a pathway to overcoming these financial burdens. At Loris Law Firm in Mobile, Alabama, we guide individuals and families through the legal process to help regain financial stability. Understanding the key factors that influence the approval of your bankruptcy filing is crucial to achieving a fresh start.

Factor #1: Meeting Eligibility Requirements

To successfully file for bankruptcy under Chapter 7 or Chapter 13, understanding and meeting the eligibility requirements is essential. Here’s a list of requirements for each type of bankruptcy:

Chapter 7 Bankruptcy Requirements

  • Means Test: Your income must be lower than the median income for a household of your size in Alabama to qualify. This test assesses your financial ability to pay off debts without liquidating assets.
  • Credit Counseling: Prior to filing, you must complete a credit counseling course from an approved agency, which aims to help you determine whether bankruptcy is your best option.
  • Filing of Documentation: Accurate and complete documentation of your assets, liabilities, income, expenditures, and a statement of your financial affairs must be submitted.
  • Residency: You must have lived in Alabama for at least 90 days before filing your bankruptcy petition at the court.
  • Court Fees: Payment of filing fees is required unless you obtain a waiver based on financial hardship.

Chapter 13 Bankruptcy Requirements:

  • Regular Income: You must have a regular income sufficient to support a repayment plan after covering basic living expenses.
  • Debt Limits: Your secured and unsecured debts must not exceed certain limits (adjusted periodically for inflation).
  • Tax Filings: You must be up-to-date on your federal and state income tax filings for the past four years.
  • Credit Counseling: Similar to Chapter 7, completion of a credit counseling session with an approved agency is necessary before filing.
  • Repayment Plan: Submission of a detailed repayment plan for court approval, outlining how debts will be paid over three to five years.
  • No Recent Bankruptcy Filings: You should not have had a bankruptcy petition dismissed in the last 180 days due to non-compliance with orders of the court.

Both pathways require careful consideration of your financial situation and goals, and consulting with a knowledgeable bankruptcy attorney in Mobile, AL can provide invaluable guidance through this complex legal landscape. 

Factor #2: Accurate and Complete Documentation

Submitting accurate and complete documentation is vital. This includes detailed lists of your assets, debts, income, and expenses. Errors or omissions can delay the process or lead to a denial of your bankruptcy petition. Ensure everything is in order by consulting with a bankruptcy lawyer in Mobile, AL, who can help you compile and review your financial details.

Factor #3: Credit Counseling and Financial Management

Before filing for bankruptcy, individuals must complete a credit counseling course from an approved agency. Additionally, before discharging any debts, a debtor education course must be completed. These courses are crucial as they provide valuable financial management skills that are necessary for post-bankruptcy success. 

Factor #4: Choosing the Right Bankruptcy Lawyer in Alabama

Having experienced legal representation can significantly influence the approval of your bankruptcy filing. The right attorney will help you navigate the legal requirements and represent your interests in court. At Loris Law Firm, our team is dedicated to providing the guidance you need to manage this challenging time effectively. 

The Loris Law Firm Advantage

Bankruptcy is not just a legal process; it is a financial rebirth. Choosing the right legal partner to guide you through this journey is paramount. Loris Law Firm has a longstanding commitment to helping residents in Southwest Alabama handle their bankruptcy cases with dignity and thoroughness.

We understand that every case is unique, and we are prepared to tailor our approach to meet your specific needs. If you are considering filing for bankruptcy and need guidance, reach out to Loris Bankruptcy Law Firm today

With the right preparation and support, your bankruptcy filing can be the first step towards a secure financial future. Let us help you make this transition as smooth and successful as possible.