In Alabama, chapter 7 bankruptcy gives claimants a chance to pay off debts within six months. The liquidation process permits the sale of assets through a trustee to settle debts. It is available to claimants who have an income that is less than the median income for their household. A Chapter 7 Bankruptcy Attorney in Tallassee AL can provide details about the claims.
What are the Benefits of Chapter 7 in Alabama?
Claimants who utilize chapter 7 to settle debt could acquire a fresh start. The cases provide an automatic stay that prevents legal action by the creditors including wage garnishment. All income earned and assets purchased after the date on the claim belong to the claimant. Creditors and the bankruptcy court cannot file an action to acquire the new assets.
What are the Disadvantages of Chapter 7 in Alabama?
Any property that isn’t exempt from the chapter 7 claim is sold by the court. It could mean that the claimant loses their home or automobile once the claim is filed. Additionally, the automatic stay won’t save the claimant’s home from foreclosure entirely. It just gives the claimant a chance to pay outstanding balances before the claim ends. For chapter 7, co-signers must file for protection under bankruptcy laws for any debt connected to them.
Does the Claimant Receive the Exempted Value After the Bankruptcy is Over?
No, the exempted value is deducted from the proceeds when each asset sells. The remaining balance is submitted to the creditors to pay off the debts. The trustee manages the entire process, and the claimant isn’t involved in the sale of the assets.
What Debts aren’t Discharged Under This Chapter?
Debts that aren’t discharged during chapter 7 include alimony and child support. Any government-backed student loans aren’t available for discharges. Fraudulent debts or charges aren’t managed through bankruptcy.
In Alabama, chapter 7 involves the liquidation of the claimant’s assets. The court assigns a trustee to sell the assets and collect proceeds. The trust gives the claimant their exempted value and then pays the creditor. Claimants who need to start a claim contact a Chapter 7 Bankruptcy Attorney in Tallassee AL through Courtney & Mann LLP right now.