Montgomery Bankruptcy and Debt Settlement Attorneys
Times are tough, and many people are living paycheck to paycheck, often having to borrow or use their credit cards just to keep up with monthly expenses. It is easy to get overwhelmed by mounting debt, and an unexpected event, such as a job loss or an extended illness, can push people over the brink to where they are simply unable to pay what they owe. Before you lose your home or car, or succumb to despair from the unending hounding of bill collectors, talk to an experienced Montgomery bankruptcy attorney about your options. You may find that U.S. and Alabama laws are here to protect you, and help is available to bring you effective debt relief.
Get a fresh start with Chapter 7
When you complete a Chapter 7 straight bankruptcy, your unsecured debts are wiped away, or discharged, giving you a clean slate and allowing you to start over on a more secure financial footing. Some people worry that they will have to sell off their property to pay their creditors as part of the bankruptcy process, but thanks to Alabama’s many generous bankruptcy exemptions, most people are able to obtain a Chapter 7 bankruptcy without having to sell any assets. If you have a high amount of unsecured debt that you cannot repay, such as credit card debt or medical bills, a Chapter 7 bankruptcy may be the fresh start you are looking for. If other kinds of debt are bogging you down, or if you do not qualify for Chapter 7, you may still find relief through a Chapter 13.
Save your home and protect valuable assets with Chapter 13
Another bankruptcy option is Chapter 13. In a Chapter 13, all of your creditors will be brought together and put into one payment plan, which you have a hand in developing. The Chapter 13 payment plan includes an adjustment of debts and puts you on track to pay off your creditors in three or five years, after which you can emerge debt-free. It is easier to qualify for Chapter 13 than it is for Chapter 7, and a Chapter 13 bankruptcy will be wiped clean from your credit report in a shorter time than a Chapter 7. Another attractive feature of Chapter 13 is that you do not have to worry about having to sell off or lose any of your valuable assets; you get to keep them all. In addition, if you are in default on your mortgage and are facing foreclosure, a Chapter 13 can stop that foreclosure in its tracks and roll any past due amounts into the payment plan, allowing you to catch up on your payments and cure any default. If you are underwater or upside-down on your home, a Chapter 13 can be used to get rid of a second or third mortgage through a process commonly known as lien stripping.
Debt settlement – an effective alternative to bankruptcy
Bankruptcy is not always the best option in every situation. Depending upon the nature and amount of your debts, it may be more beneficial to have an attorney negotiate a debt settlement with your major creditors. Often times, creditors will accept a lesser amount than what is owed to satisfy a debt, if it is more cost-effective for them to take a lesser amount than continue to try to collect the entire amount. This is especially the case when they see that you cannot afford to pay and may file for bankruptcy, in which case they may get nothing. A debt settlement can be more cost-effective for you as well, saving you the time and expense of bankruptcy, and keeping a bankruptcy off of your credit report.
Get help today from experienced and dedicated Montgomery bankruptcy attorneys
If you are in financial straits, find an attorney who will not push you into one particular solution, but will instead guide you to the best solution for you. The experienced debt relief attorneys at The Dansby Law Firm will advise you on all your options, including whether bankruptcy or debt settlement is preferable in your own, unique situation. Call 334-834-7001, or visit us at our office in Montgomery. We look forward to the opportunity to help you.