If you find yourself in a situation where you cannot pay your debts back in full, you may be granted bankruptcy protection to reduce your debt load or cancel it completely. A bankruptcy lawyer can help you when you are on the verge of bankruptcy or have questions about the filing process. The team at Backus Law Group in Montgomery, AL, will provide the legal counsel and advice you need to work through your financial crisis.
Here are some key things you need to know about bankruptcy protection:
- Federal & State Laws: Bankruptcy protection is governed by federal laws and is typically known simply as the Bankruptcy Code. Some states have their own set of laws pertaining to filing bankruptcy, so you need to work with a lawyer who is familiar with both Alabama and federal laws.
- Types Of Bankruptcy Protection: There are six chapters of bankruptcy—chapters 7 and 13 are the most common types of bankruptcy filed by individuals, and chapter 11 is commonly filed by businesses. Bankruptcy protection helps the individual or business reorganize their finances and eliminate or reduce a significant amount of debt.
- Expectations After Discharge: Some debts are completely discharged under various types of bankruptcy, which means they do not need to be paid back. Others must be paid back partially, and the court will determine what the payback schedule will look like. Your bankruptcy lawyer will be able to explain what types of debts you will still be responsible for after filing bankruptcy and what rights you have throughout the process.
Filing for bankruptcy can be less overwhelming when you work with an experienced bankruptcy attorney and understand how the filing and discharge process works in Alabama works. If you have questions about bankruptcy protection, get in touch with a bankruptcy lawyer at Backus Law Group in Montgomery, AL. Call them at (334) 265-0800, or visit their website for more information.