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Acknowledging bankruptcy is the right solution for you is a hard decision. Next, you’ll need to decide which type of bankruptcy is appropriate. If you’re an individual or a small business owner in the state of Alabama, your best choices are Chapter 7 or Chapter 13 bankruptcy. While Chapter 7 bankruptcy can be seen as more of a “liquidation,” Chapter 13 can be thought of as a “reorganization” of debt. In either case, it’s best to work with an attorney who is a experienced in bankruptcy law to ensure you achieve the best possible outcome.

Chapter 13 Bankruptcy

There are several situations in which a Chapter 13 bankruptcy is preferable to a Chapter 7. A Chapter 13 bankruptcy is really the only choice if you are behind on your mortgage or business payments and are determined to keep your property. It lets you make payments on the overdue amount, allowing you to reinstate the original mortgage agreement. People typically file for Chapter 13 bankruptcy because they have far too much income to qualify for a Chapter 7, or they have a kind of debt that is not dischargeable under Chapter 7 bankruptcy law.

Chapter 7 Bankruptcy

bankruptcy lawFor people who want to eliminate their debt without paying any of it back, Chapter 7 is the clear choice. According to bankruptcy law, when you file for Chapter 7, your debt will be discharged, excluding any secured assets for which you have signed a reaffirmation agreement (promise to pay). Creditors are not permitted to collect or garnish wages you earn. However, you should be aware that you will be unable to continue using credit cards while in a Chapter 7 bankruptcy.

Donna C. Crooks Attorney At Law has over 20 years of experience handling cases and resolving conflicts for clients in the Enterprise, AL, area. To learn more or to schedule a consultation, visit her online or call (334) 598-9534 today.

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