Bankruptcy is a legal solution to overwhelming debts. Filing for bankruptcy is among the difficult decisions you will ever make. When you file bankruptcy, your goal is to receive a discharge, which releases you from personal liability for specific debts and prohibits bill collectors from taking any action against you to collect the debt.
If you are struggling to pay your debts and concerned about the future welfare of you and your family, seek the advice of a trustworthy bankruptcy attorney.
An experienced attorney can ensure that your assets are protected and the debts are dischargeable.
Seven myths about filing for bankruptcy
Meet Your Bankruptcy Attorney, Steve Altmann
“I am a bankruptcy attorney in Birmingham, AL. For over 30 years, I have helped individuals, families, and business owners file for bankruptcy relief so they can get a fresh start.
If you have never been through bankruptcy, the process may be confusing and intimidating. I will explain the process and help you identify which type of bankruptcy solution is right for you.
Let’s set up a time to talk. You’ll learn how bankruptcy can stop the calls and erase debt you no longer want to carry.”
Which bankruptcy chapter is right for me?
How does bankruptcy work?
Bankruptcy Q&A with Steve Altmann
There are three ways to obtain a bankruptcy discharge:
- Chapter 7
- Chapter 11
- Chapter 13
All of our clients are different, but they have a lot in common. They want to be free from debt collectors hounding them for money they simply don’t have.
Our clients are looking for freedom…financial freedom from overwhelming debt. To them, we offer a solution. We help them gain control of their finances, offer financial freedom and peace of mind. It’s the one thing everyone can use some more of in their life.
If you could be in control of the outcome of your legal case and secure your financial stability, wouldn’t you want to take the first step towards a new beginning?
We help people get out of debt. Talk to our attorney today.
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At-home bankruptcy assistance
At Nomberg Law Firm, we want to make the bankruptcy process as simple, safe, and stress-free as possible.
We understand that financial struggles can feel overwhelming—and the last thing you need is more hassle or uncertainty. That’s why we offer a contact-free bankruptcy process that allows you to get the help you need without ever leaving your home.
Here’s what you can do to get started with our virtual debt relief process:
- You call or email us for a free phone consultation. In the first phone call, we review your situation and analyze whether bankruptcy can help you. You have many options, and we can help you determine what might be best for you.
- Next, if you qualify for Chapter 7 or Chapter 13, you’ll send in your documents, and we can set up a full, free video chat. In this call, we will get into more detail about how bankruptcy would apply in your specific situation and determine the best course of action for you.
- Then, we can prepare your bankruptcy documents for you to review virtually with one of our attorneys, and you sign from the comfort of your home.
- After that, we will brief you by video or telephone, and you will have your bankruptcy court hearing by phone.
Our Birmingham bankruptcy attorney is available to answer questions by phone or email, and you can send us documents by email, fax, or regular mail. We have adapted to the times and can take payments electronically also, so you can do all of this from home.
Our team is here to help you and your family through these tough times so you can get the fresh start you need!
What is Chapter 7 bankruptcy?
Chapter 7, also known as a “straight bankruptcy”, contemplates an orderly liquidation of your assets by a court-appointed trustee who will then make distributions to your creditors or the people you owe.
Immediately upon filing the Chapter 7 bankruptcy case, you are shielded from all collections by your creditors.
Your creditors are notified as soon as your Chapter 7 bankruptcy case is filed. At this point, they must stop all harassing phone calls, harassing letters, garnishments, repossessions, and foreclosures.
What is Chapter 7 in bankruptcy?
This immediate protection from your creditors is one of the most important benefits of a Chapter 7 bankruptcy filing. As a debtor in Chapter 7, you can retain secured collateral, such as houses and cars, by reaching voluntary reaffirmation agreements with a specific creditor.
If you reaffirm a debt, you are recreating that debt that would have been extinguished and continue to make your regular monthly payment.
Individuals and married couples are also entitled to exemptions, which allow you to retain clothing and personal property, like household goods and furnishings, and protect your house equity.
In Alabama, individuals are allowed a $18,800 homestead exemption on their residence or $37,600 of equity for married couples and $9,400 personal property exemption or $18,800 for married couples. Based on certain factors, it is possible to have substantial additional equity over and above these exemption amounts and still retain possession of your home and personal property.
We can discuss this in more detail during your FREE initial consultation.
We help people get out of debt. Talk to our attorney today.
Am I eligible for Chapter 7 filing?
In your consultation, one of the first things we will analyze is your household income and expenses to determine whether you pass the “Means Test” to qualify for Chapter 7.
If your debts are primarily consumer debts and your income exceeds certain thresholds, you may not be eligible for Chapter 7 relief.
What’s the cost of filing Chapter 7?
If you qualify for Chapter 7 bankruptcy and decide to file, you must pay the attorney fees and court costs before the filing of the bankruptcy case. We can work out installment payments on your Chapter 7 bankruptcy fees.
A married couple filing a joint case only pays one fee and one set of filing fees. After evaluating your circumstances, we can give you a quote for the fees in your case and explain how you can rebuild your credit after filing for bankruptcy.
We look forward to assisting you in regaining control of your financial situation.
What is Chapter 11 bankruptcy?
What is the Small Business Reorganization Act and how does it benefit small businesses?
Rent deferral may be available to small businesses in Chapter 11 bankruptcy cases
Chapter 11 is a type of bankruptcy typically filed by a commercial enterprise or business that desires to continue operating a business and repay creditors through a court-approved reorganization plan. You continue to run your business under the supervision of the Bankruptcy Court and the Bankruptcy Administrator.
Individuals who have debt that exceeds the debt limit allowed for a Chapter 13 may seek to file a Chapter 11.
There is a new provision for Small Businesses to seek protection under Chapter 11 through Subchapter V (“Subchapter 5”) that operates similar to Chapter 13. The new provision is called the Small Business Reorganization Act. The goal of Chapter 11 is to propose a plan to reorganize your business and restructure your operations to return to profitability.
One example of this may be a company with several locations that need to reject a lease and close an underperforming location to save profitable locations. A Chapter 11 plan will also allow you to establish new payment terms and discharge unsecured debt.
When it comes to filing for Chapter 11 bankruptcy, nothing is more important than having a solid legal team behind you. At a personal and professional level, we can be your trusted advisors. With our help, you can overcome debt and start the new business chapter.
Due to the complexities of Chapter 11 bankruptcy filing, our firm charges for an initial consultation to analyze your business financial situation.
What is Chapter 13 bankruptcy?
Chapter 13, also known to some as “debtor’s court,” is designed for an individual debtor who has a regular source of income. Chapter 13 is often preferable to Chapter 7 because it enables you to stop a foreclosure and keep a valuable asset, such as your house.
A typical Chapter 13 lowers your monthly payments to creditors. It allows you to eliminate interest and late fees on credit card debt.
Debts that can be paid through a Chapter 13 plan include:
- Car loan payments
- Mortgages
- Credit cards
- Medical bills
- Taxes
- Student loans
- Payday loans
- Child support arrearages
What is Chapter 13 in bankruptcy?
Chapter 13 allows you to propose a “plan” to repay creditors over time – usually three to five years.
You repay your debts through a trustee based on your anticipated income over the life of the plan. Steve Altmann, your local Birmingham bankruptcy attorney, will help you formulate a payment plan designed to be confirmed by the court.
Your first payment is due within 30 days of the date of filing. You must maintain your payments monthly to avoid having your case dismissed.
How does Chapter 13 bankruptcy work?
Eliminate high-interest loans
Chapter 13 bankruptcy allows you to discharge the high-interest debt.
For example, suppose you have high-interest credit card debt, high-interest loans, or high-interest payday loans. You can pay your creditors through your 60-month plan at a zero percent interest rate.
If you have a vehicle loan with a high-interest rate, it is possible to substantially lower the interest rate, often as low as 5 or 6 percent.
Stop foreclosure or repossession
You could file a Chapter 13 bankruptcy case, stop the foreclosure or repossession, and cure the default over an extended period of time.
This would allow you to have a manageable payment.
Stop wage garnishments
Filing a Chapter 13 bankruptcy case will immediately stop a garnishment by the IRS, State, or a Judgment creditor. This will stop the creditor from taking your money until a repayment plan is in place.
When you pay your tax debt through a Chapter 13 bankruptcy, the debt typically no longer incurs interest or penalties during the life of the case. If you successfully complete your Chapter 13 case, you will not have to pay this interest or penalties.
A Chapter 13 bankruptcy case is a powerful tool to help you and your family reorganize household bills to a manageable level. Our attorney has helped hundreds of people from losing their cars and homes and successfully reorganized these debts to establish good credit standing.
Chapter 13 – Low up-front cost bankruptcy option
What’s my cost for filing Chapter 13?
When you file for Chapter 13 bankruptcy, most of the attorney fees and the filing fee are combined with your other bills.
Once you call our office and discuss your situation, we will be able to tell you what your initial fee will be to file your case.
Chapter 13 versus Chapter 7, what’s the difference?
Unlike Chapter 7, you do not receive an immediate discharge of debts. You must complete the payments required under the plan before you receive a discharge.
Under Chapter 13, you are, however, protected from lawsuits, garnishments, and other creditor actions while the plan is in effect. You can also eliminate more debts in a Chapter 13 than in a Chapter 7.
The discharge is also somewhat broader (i.e., more debts are eliminated) under Chapter 13 than the discharge under Chapter 7.
How do I file for bankruptcy in Alabama?
Bankruptcy can be the best opportunity to breathe life back into your finances and may allow you to recover your financial health quicker than any other option. If you’re considering filing for bankruptcy in Alabama, these are the steps you should take.
Step 1: Talk to a bankruptcy attorney
The first, and most important step, is finding the right legal counsel to walk you through the process. While it may seem counterproductive to seek the advice of a lawyer that costs money when money is already tight, the reality is that bankruptcy law is complex.
Having an experienced bankruptcy attorney on your side can make all the difference in protecting your assets and securing a fresh financial start. Without one, vital checkpoints of your bankruptcy case could be missed, which could even result in the dismissal of your case.
Step 2: Decide which type of bankruptcy you should file
Next, your legal representation will counsel you on which form of bankruptcy is the right kind for your needs. These different forms are called “chapters,” named for their placement within the Federal Bankruptcy Code.
One such option is Chapter 7 bankruptcy. This chapter is typically a 90-day process from the time that you file your case to the time you receive your discharge. A trustee is appointed to your case to investigate and sell assets to pay your debts. Items such as clothes, household goods, tools, and vehicles are usually exempt from the liquidation process. The goal of this process is to obtain a discharge or cancel your debts.
If it is determined that you can pay a significant portion of your debt, then you may need to consider a Chapter 13 bankruptcy instead. In this chapter, “wage earners,” as they are called, propose a plan approved by the court to pay back debts for a period between 3 and 5 years. At the end of this time, the remaining debts are discharged.
Step 3: Participate in credit counseling
After deciding which form of bankruptcy fits your situation best, all individuals wishing to file are required to attend a credit counseling session within the 180 days preceding the filing.
The credit counseling session typically involves filling out a budget to review with your counselor, who will discuss appropriate alternatives to bankruptcy. If an individual is married, both spouses are required to attend these sessions, though most can be completed online.
Step 4: File the necessary forms
It is at this point that you are finally ready to file for bankruptcy. You will have to fill out a form requesting information about your assets and debts and provide supporting documentation—yet another reason to have legal counsel at hand to instruct you through the process.
Your attorney can help you navigate through the volumes of information that you will need to disclose in your bankruptcy petition to ensure you comply with the bankruptcy laws.
If you are struggling to pay your debts and concerned about your future welfare, it’s important that you seek the advice of a bankruptcy lawyer to ensure that your assets are protected and the debts you seek to eliminate are dischargeable.
We help people get out of debt. Talk to our attorney today.
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