As a leading bankruptcy and foreclosure defense practice, we have a well-deserved reputation as dedicated advocates who provide our clients with compassionate representation when they need it most. When you become our client, you will have peace of mind knowing there are solutions. Contact us today to get started with an acclaimed bankruptcy attorney.
What is Bankruptcy?
Bankruptcy is a legal process designed to help individuals and businesses eliminate or repay their debts under the protection of the bankruptcy court. It provides a fresh start for those overwhelmed by financial obligations they can no longer meet.
There are different types of bankruptcy, including:
- Chapter 7 involves liquidating assets to pay off debts
- Chapter 13 allows for a debt reorganization and repayment plan
Filing for bankruptcy can provide immediate relief through an automatic stay, which halts all collection efforts, including lawsuits, wage garnishments, and harassing phone calls from creditors. While bankruptcy can have long-term financial and legal consequences, it offers a chance to rebuild and move forward with a clean slate.
Reasons for Bankruptcy in Alabama
Bankruptcy can be challenging, but it’s a necessary step toward financial stability for many Alabamians. Some of the leading reasons people file for bankruptcy include:
- Medical expenses—High medical bills can quickly deplete savings and overwhelm even the most prepared individuals.
- Job loss—Unemployment or a significant reduction in income can make it impossible to keep up with bills and debt payments.
- Credit card debt—High-interest credit card balances can spiral out of control, especially when only minimum payments are made.
- Divorce—The financial impact of a divorce can lead to significant debt and the need for bankruptcy protection.
- Unexpected expenses—Life is full of surprises, and sometimes, unexpected costs can leave people with no choice but to file for bankruptcy.
No one plans for financial hardship, but it’s essential to know that bankruptcy can offer a fresh start and a path to regain control of your finances.
Types of Bankruptcy
Understanding the types of bankruptcy can help you determine the best path to regain financial stability. The two most common types of bankruptcy for individuals are Chapter 7 and Chapter 13.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy, often called “liquidation bankruptcy,” involves selling a debtor’s non-exempt assets to repay creditors. This type of bankruptcy is typically suited for individuals with limited income and substantial unsecured debts, such as credit card bills and medical expenses. The process usually takes a few months, and at the end, most of the remaining unsecured debts are discharged, giving the debtor a clean financial slate.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy, also known as “reorganization bankruptcy,” allows individuals with a regular income to develop a plan to repay all or part of their debts over three to five years. This type of bankruptcy is ideal for those who want to keep their property, such as a home or car, and need time to catch up on overdue payments. Chapter 13 can stop foreclosure proceedings and provide a structured way to handle debts without liquidating assets.
We understand the stress and anxiety that financial difficulties can bring. Our skilled and compassionate bankruptcy lawyers are here to help you find the best solution for your situation. You don’t have to face this alone; let us help you achieve a fresh financial start.
How Our Firm Can Help
At Pleasant Legal Solutions, we guide clients in Hoover, Birmingham, and across Alabama through the challenges of bankruptcy. Lead attorney Jeanetta Pleasant brings over ten years of experience in bankruptcy and foreclosure defense to provide personalized, informed guidance on the best path forward.
Whether you’re considering Chapter 7 or Chapter 13 bankruptcy, our team will work closely with you to develop a plan that aligns with your financial goals. Trust us to deliver compassionate, effective representation and dependable service during this challenging time.
Above all, we believe in building solid relationships with our clients. We are here to listen, advise, and support you every step of the way. If you’re facing financial difficulties, don’t hesitate to contact us. Let us help you take control of your financial future and work toward a fresh start.
Take Control of Your Financial Future
Don’t let financial stress overwhelm you. Contact Pleasant Legal Solutions today for a free consultation and take the first step toward a brighter financial future.