What is Straight Bankruptcy? Would it be Right for Me?
When a person mentions a straight bankruptcy, he or she is referring to a Chapter 7 discharge under the U.S. Bankruptcy Code. It involves a personal bankruptcy, and it’s the most common type of bankruptcy petition filed in the United States. Over the last quarter of a century, the Mobile AL bankruptcy lawyers at the Loris Law Firm have assisted countless individuals in Chapter 7 bankruptcy proceedings from preparation of filings to discharge.
The Means Test
This test involves one of the documents that we can help you prepare prior to filing for Chapter 7 relief. You must calculate whether you have the means to pay at a meaningful portion of your debts. The test compares your income with the median income of everybody in Alabama. If you can’t pass the means test, it’s highly likely that a Chapter 13 reorganization will be the only form of bankruptcy relief available to you.
The Automatic Stay
An automatic stay is a provision of the U.S. Bankruptcy Code that gives debtors some breathing room after filing for Chapter 7 relief. It temporarily prevents listed creditors from pursuing collection of debts that a person has with them. The automatic stay takes effect immediately upon the filing of the Chapter 7 petition.
The Meeting of Creditors
After the filing of a Chapter 7 petition, the court issues a notice of a meeting of all of the debtor’s creditors who have been disclosed on court documents. In the meeting, the court asks the debtor questions about whether the information provided by the debtor is true and correct. Creditors are also allowed to appear and ask questions about the debtor’s finances. We attend these meetings with our clients.
A Chapter 7 proceeding involves complicated paperwork and statutes that only bankruptcy attorneys fully understand. Experience and efficiency count. Contact the Mobile AL bankruptcy lawyers at the Loris Law Firm with about Chapter 7 relief for you. They’ve helped thousands of people over 25 years.