Although bankruptcy may seem like the end of the world, under the right circumstances it can provide you with a fresh start. Filing bankruptcy will put an end to collection calls, wage garnishments, and lawsuits while working to eliminate overwhelming debt. Though, despite its many benefits, this debt relief option isn’t right for everyone. Below, Ozark, AL. bankruptcy attorney Ray T. Kennington, Attorney At Law will help you determine whether filing is right for you. 

Types of Bankruptcy

There are two common forms of consumer bankruptcy: Chapter 7 and Chapter 13. A Chapter 7 bankruptcy will discharge all or the majority of your debts in exchange for your nonexempt property. A Chapter 13 bankruptcy, on the other hand, will allow you to keep your property in exchange for repaying some or all of your debts over a period of three to five years. Consulting with a bankruptcy lawyer will help you determine which option best suits your unique situation. 

Bankruptcy Alternatives

Filing bankruptcy is never a decision to be made lightly. As such, it’s important to research bankruptcy alternatives prior to filing to ensure you’re moving in the right direction. Potential bankruptcy alternatives include:

• Creditor Negotiations: Creditors are often willing to negotiate with debtors. This may allow you to satisfy your debt at a discounted rate or work out a more affordable payment plan.
• Credit Counseling: Similar to Chapter 13 bankruptcy, credit counseling will allow you to satisfy some or all of your creditors over an extended period of time. However, unlike Chapter 13, if you happen to miss a payment, collections may come calling. 
• Do Nothing: When a debtor has little-to-no income or property to satisfy their debts, he or she may be deemed “judgment proof”. In such situations, which are rare, filing bankruptcy may be unnecessary.

If you have explored your available options and still feel bankruptcy is the best path forward, seeking legal advice from a competent bankruptcy attorney is the next step to take.

When it comes to bankruptcy law, Ozark, AL, residents turn to local bankruptcy attorney Ray T. Kennington, Attorney At Law. Serving the community since 1982, Attorney Kennington will provide you with the legal advice and guidance you need to obtain the fresh financial start you’ve been dreaming of. Consultations are available. Learn more about his services online or call (334) 445-1200 to schedule an appointment.