Best Foreclosure Lawyers in Hoover, AL

Bankruptcy is a legal process where individuals or businesses that declare they are unable to pay outstanding debts can get a fresh financial start. Bankruptcy is a right provided by federal law, and all bankruptcy cases are handled in federal court. In most cases, filing bankruptcy immediately stops your creditors from taking any action against you or your property, giving you some breathing room to sort out your various debts according to the law.

Bankruptcy can permit you to: Discharge or eliminate most, if not all of your debts; Temporarily stop a foreclosure proceeding to allow you time (possibly up to 60 months) to catch up on past due mortgage payments; Stop the repossession of your car; In some cases, reduce the amount that you owe on your vehicle loan to the value of the car. For example, you may owe your auto lender $20,000 on a car that is only worth $12,000. Bankruptcy may permit you to keep the car by paying your creditor only $12,000, plus interest, plus some percentage of the remaining $8,000 that you would owe. Lower the interest rate on your vehicle loan to a more manageable rate; Stop most court proceedings that have been brought against you; Stop wage garnishments and debt collection harassment; Restore or prevent termination of your utility services (though a deposit may be required); Challenge the claims of Creditors who are attempting to collect more than you actually owe.

No. Chapter 7 can permit you to keep your house and car. As long as you are current on your car and mortgage payments, and there is no significant equity in the property, you should be able to reaffirm these obligations, and keep the property. Further, if you do have some equity in your house or car, if the amount of equity is below the Alabama Exemption limits, you will be able to keep the property. If your equity exceeds these limits, you may need to file a Chapter 13, which would permit you keep the property.

Chapter 13 is debt re-adjustment proceeding for individuals whereby a Debtor is able to keep most of his property (i.e. house, cars, furniture or other necessary personal property) under a Court approved repayment plan, while discharging most, if not all, of his other debts. In a Chapter 13 case, a Debtor proposes a plan to repay his creditors, and consolidates most of his debts into a single monthly payment that the Debtor can more easily afford. Chapter 13 provides a broader discharge than a Chapter 7 case, and certain debts which are non-dischargable in a Chapter 7 case may be discharged in a Chapter 13.