Although bankruptcy can be lucrative for some people, it’s also a highly complex legal process that many find overwhelming. A little reliable information can make the entire process less intimidating, so here are a few facts about bankruptcy, courtesy of The Gil Law Firm in Dothan, Alabama.
Before deciding to petition for bankruptcy, you should know:
- Chapter 7 Isn't For Everyone: Debtors who want to file for a Chapter 7 bankruptcy must first pass a means test and demonstrate that their income is too low to ever pay off their debts. If your income is too high, you may be forced into a Chapter 13 bankruptcy.
- Not All Debts Can Be Discharged: While most consumer debt can be discharged or paid back in a bankruptcy, student loans and tax debts, among others, are exempt. If you're not sure whether your debts can be included, consult with an experienced bankruptcy attorney.
- You May Be Able To Keep Most Of Your Property: In a liquidation, the court-appointed trustee is supposed to seize your property to pay off a portion of your debts. However, federal law exempts a great deal of property from liquidation, including your vehicle, home, tools, family heirlooms, and several other items. Your attorney will help ensure you claim as much exempt property as possible.
The attorneys at The Gil Law Firm know how stressful living with debt can be, which is why they strive to provide the fastest, most effective service possible. To learn more about their practice areas in Alabama, Georgia, and Florida, visit their website. If you're ready to get out of debt, call (334) 673-0100 to schedule a consultation with a bankruptcy attorney today.