|
The following language is required pursuant to Rule 7.2, Alabama Rules of Professional Conduct. No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. We are a debt relief agency. |
|
“The purpose of bankruptcy is to have a fresh start.” United States Supreme Court At Campbell & Campbell, we know at times everyone struggles financially, and when that struggle becomes unbearable, we know how important it is to get the relief you need. When our clients come to us for help, we understand their worries and stressful situation. It is our job to take that burden off their shoulders. Whether they took on more debt than they could handle, lost a job, have unexpected medical expenses—no matter what the reason behind their financial difficulties, filing bankruptcy is an option. For most people, it’s the best option. |
|
CHAPTER 7 BANKRUPTCY Chapter 7 eliminates your debts. In most cases, a Chapter 7 is referred to as a liquidation or straight bankruptcy. This is because the Bankruptcy Trustee has the option of liquidating or selling property of yours that is not exempt from your creditors. In most cases, all, or almost all, of your property is exempt from your creditors. In a Chapter 7 bankruptcy, you discharge your debts and keep your property, as permitted by the law. In a Chapter 7 bankruptcy, you decide what debts you want to keep and which you want to avoid. You can keep your car payment and your house, but eliminate your credit card and department store debts, as well as medical debts, judgments and other types of debt. In some cases, even taxes can be discharged. However, government-backed student loans, domestic support obligations and debt from recently filed or assessed taxes are non-dischargeable under a Chapter 7. For answers to whether or not a debt you owe is dischargeable, please ask one of our attorneys. |
|
Chapter 7 Chapter 13 Chapter 11 Chapter 12 Bankruptcy Alternative Information you will need to bring your appointment FAQ about Bankruptcy |
|
Don’t wait! Often our clients wait until their house has been foreclosed on or their car has been repossessed. Once these occur, there is little we can do. If you are unsure about filing bankruptcy, have questions about your debt or want to know what your options are, make an appointment with our attorneys for a consultation. Our attorneys will answer any questions you have concerning your debt and bankruptcy. We will help! Concerned about what filing bankruptcy will mean for your future? Yes, it will be on your credit report for 10 years, and you can’t take on any new debts while in bankruptcy. But what if you don’t file? |
|
CHAPTER 13 BANKRUPTCY Sometimes, an individual or a family simply needs time to catch up on their debts or restructure payments and extend them. Usually you can restructure you payments up to five years. In chapter 13, you can keep your home and vehicles if you can pay for them. In most cases, vehicle payments are lowered by reducing your interest and extending the time you pay for the vehicle to help you lower your payments. In this case, a Chapter 13 bankruptcy could be your best possible solution. Others simply earn too much to qualify for a Chapter 7 bankruptcy and must file under Chapter 13. If so, we will assist you in putting together a plan that eliminates as much of your debt as possible and allows you to keep as much of your property as feasible. If you are behind on your home payment, car payment or other secured debt where you wish to keep the collateral, Chapter 13 will usually help. |
|
Who is Eligible for a Chapter 13? Not everybody qualifies. In order to be eligible, a person must: ¨ Have a consistent source of income. ¨ Have sufficient disposable income available to pay secured creditors. If you do not qualify for Chapter 13, you may still qualify to file for bankruptcy protection under Chapter 7 or Chapter 11. |
|
CHAPTER 11 BANKRUPTCY Chapter 11 is mainly for businesses and corporations; however, individuals may also qualify. The purpose for Chapter 11 is to allow businesses or individuals to restructure their debt. A Chapter 11 provides for larger debts and longer periods to pay back the majority of your creditors. In certain cases, you may not have to pay all of your unsecured creditors and may be able to restructure the secured debt to pay just the value of the security with lower interest and more time. Generally, in most cases the debtor acts as the trustee and reorganizes the business’s debts and/or assets by coming up with a plan that is approved by the Bankruptcy Court and voted on by the creditors. If agreed upon, the debtor pays off the creditors according to the plan. During a Chapter 11, the debtor may be allowed to finance or take on new loans if approved by the court. |
|
CHAPTER 12 BANKRUPTCY Chapter 12 of the new Bankruptcy Code is designed specifically for these farmers and fishermen. Chapter 12 is similar to a Chapter 11 and 13; it is a repayment plan to pay off all or part of a farmer or fisherman’s debts that takes in consideration the economic realities of the occupation. |
|
BANKRUPTCY ALTERNATIVE If you cannot make your payments, but do not want to file bankruptcy, or if you can’t file bankruptcy, it is possible for us to negotiate with your creditors to relieve you of some of your debt. Debt Settlement In this type of case, our office will contact your creditors in order to arrange a settlement that is less than what is owed. In the majority of cases, creditors are eager to liquidate the debt and receive something on the account that is owed. Creditors, at times, accept a payment plan, and once the payment plan is completed, they may even charge off the rest without negatively affecting your credit, or affecting it as minimally as possible. The length of time of the payment depends on the amount of the debt and the particular creditor. Beware of Other Debt Settlement Services! In these economic times, debt settlement and negotiation services and agencies are popping up everywhere, as you may have seen them advertise. Most of these, especially the ones that heavily advertise, are a SCAM! They take your money, lead you on and do nothing about your debts. In fact, most of the people who join these programs are eventually forced to file bankruptcy. Debt negotiation and settlement is a real option for some people and may be the best option. At Campbell and Campbell P.C., we offer this service because we realize bankruptcy is not for everyone. Although most services out there cause more damage, we have been approved by the State Bar Association and have experience negotiating with creditors. In addition, we are up front and honest with our clients and fully inform them of any progress we make with their creditors. |
|
WHAT TO BRING TO YOUR APPOINTMENT If at all possible, please bring the following items, as copies of most are required to be filed with the court in your bankruptcy case: 1. Proof of your total household income for the past six months. |
|
BANKRUPTCY FAQS Does filing bankruptcy hurt my Credit? Yes. If you are worried about your credit, do not file bankruptcy. However, you should ask yourself, “How is my credit now and what will happen if I don't file bankruptcy?” Usually, if you are considering bankruptcy, your credit is already damaged. If you don't file, the phone calls will still be coming, or worse, you may have property repossessed or foreclosed on or lawsuits filed against you. What do I do if I get served with a lawsuit? The best course of action is to see a lawyer IMMEDIATELY!! If the lawsuit is filed in district court, you have 14 days to file an answer. If the suit is filed in circuit court, you have 30 days to file an answer. If you don't file an answer, a default judgment can be taken against you. Let us emphasize again, if you are served with a summons and complaint, you should see an attorney immediately. What happens if I don't file an answer and a judgment is taken against me? If a creditor takes a judgment against you, the creditor then has a right to garnish your wages or put a lien on your property. If a creditor garnishes your wages, it has a right to take money from your paychecks to pay the debt. If a creditor has a lien on your property, it has a right to sell your property in order to collect the amount of the judgment. How can I stop my creditor's from calling to try to collect a debt? The automatic stay under § 362 of the Bankruptcy Code prevents most all creditors from attempting to collect a debt from you. This protection is granted to you once you file a bankruptcy petition, but may be limited in repeated filings. What does a discharge of debts under bankruptcy mean? A discharge of debts under Bankruptcy Chapter 7 or Chapter 13 means that creditors are prohibited from EVER attempting to collect that debt from you again. A discharge wipes out your legal liability for those debts. Will a bankruptcy stop a garnishment? Yes, the filing of any bankruptcy petition will stop a garnishment of your wages. Will I lose my house? Yes, the filing of a bankruptcy petition will stop a foreclosure process up until the point of the sale. |
|
What You Need to Know about Bankruptcy |