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A Montgomery Bankruptcy Attorney Answers FAQs May 23, 2016

A Montgomery Bankruptcy Attorney Answers FAQs , Clanton, Alabama

People in financial distress often have questions about bankruptcy. Here, the bankruptcy attorneys from Backus Law Group in Montgomery, AL, will answer some of the most frequently asked questions. The firm has a long history of helping individuals navigate the complicated legal processes of bankruptcy protection to relieve their financial burdens. 

What Is Bankruptcy? 

Bankruptcy is a federal court process that allows debtors to pay or eliminate their debts under the protection of the bankruptcy court. Eliminating debt in bankruptcy is called bankruptcy discharge. Individuals can file for Chapter 7 or Chapter 13 bankruptcy.

What’s The Difference Between Chapter 7 & Chapter 13 Bankruptcy?

Under Chapter 7 of the federal bankruptcy code, the court allows debtors to discharge their secured and unsecured debt without paying creditors. Under Chapter 13, debtors make payments under court-approved plans. Once the plan is completed, if any debt remains, the court discharges it.

What Are Secured & Unsecured Debts?


Secured debt is money owed that is connected to property for which a creditor can file a claim if the debtor files for bankruptcy. Mortgages, car loans, court judgments, and tax liens are secured debts. Unsecured debt is not connected to property creditors can claim. Examples are medical bills and credit card debt. 

Will Filing For Bankruptcy Eliminate All My Debt? 

No. Many, but not all types of debts can be discharged in bankruptcy. Non-dischargeable debts include taxes, court judgments for personal injury or death, and debts not included in the bankruptcy petition.  

If you’re considering filing for bankruptcy, the bankruptcy attorneys at Backus Law Group will be happy to answer all of your questions. They will help you decide whether to file and which plan fits your circumstances, then guide you through the entire process.

You don’t have to face difficult financial circumstances alone. To schedule a consultation with a bankruptcy attorney, call Backus Law Group today at (334) 265-0800, or visit their website for more information about their areas of practice, which include divorce law.

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