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BANKRUPTCY IN ALABAMA

CHAPTER 7

DEBT LIQUIDATION

In Chapter 7 Bankruptcy, a bankruptcy judge cancels many or all of your debts. At the same time, a "bankruptcy trustee" may also sell some of your property to repay your creditors. The bankruptcy process normally takes four to six months, costs $335 in court filing and court administrative fees. In many cases, you will only have to attend court once for the 341 meeting, also known as the meeting of the creditors. After the judge grants a discharge, all the debt that you listed in the bankruptcy petition will be wiped clean. You will not have to make any payments to people and companies that you owed.

CHAPTER 11

BUSINESS REORGANIZATION

Chapter 11 Bankruptcy helps businesses restructure its' debts by reducing obligations and modifying payment terms. Chapter 11 also helps the business balance its' income, expenses, and regain profitability while continuing to operate.

The business can sell some or all of its' assets so it can downsize or pay down debts it owes.

Chapter 11 Bankruptcy can be expensive, time consuming and complex.






BANKRUPTCY LAW

CHAPTER 13

DEBT CONSOLIDATION

In Chapter 13 Bankruptcy, you keep your property, but pay back all or a portion of your debt over a three to five year period.

Chapter 13 Bankruptcy requires you to use your income to repay some or all of your debt. You have to prove to the judge that you can afford to meet your monthly bankruptcy payments plus your monthly bills/living expenses. If your debt is too high related to your income, you will be ineligible for a Chapter 13. If your home is being foreclosed on, Chapter 13 Bankruptcy may be a good solution to stop the foreclosure.







At Clenney and Palmer LLC, our bankruptcy law attorneys have helped thousands of people navigate through the bankruptcy process. We strive to make the bankruptcy experiences as quick and painless as possible. Many people are apprehensive about filing for bankruptcy. At Clenney and Palmer LLC, we are up front and keep our clients informed every step of the way. We take the stress out of bankruptcies. You will always be in good hands with our experienced staff and bankruptcy attorneys.

Article 1, Section 8, Clause 4, of the U.S. Constitution states "Congress shall establish... uniform laws on the subject of Bankruptcy throughout the United States." So, in effect you have a constitutional right to discharge your debts through bankruptcy.