If you are in considerable debt and have determined that declaring bankruptcy makes the most financial sense, you may be wondering where to start. Although discharging debt will lift a huge burden and help you restore your financial footing, the actual filing process can be overwhelming. Fortunately, a bankruptcy lawyer from Padgett & Robertson, Attorneys at Law, in Mobile, AL, will guide you through every stage of the proceedings.

How to Discharge Debt Through Bankruptcy in Alabama

1. Attend Credit Counseling

As of 2005, all individual debtors who want to declare bankruptcy in the state of Alabama must undergo credit counseling. After completing this step, you have six months to file.

2. Confirm Your Eligibility

If you want to declare Chapter 7, which is for Alabama residents who want to eliminate debt without paying it back, a bankruptcy lawyer will ensure you meet the means test. Otherwise, you can begin the proceedings for Chapter 13, which allows you to make up overdue payments over time.  

3. Gather All Essential Paperwork

An attorney can provide a complete checklist of all documents needed for filing, but you can start by gathering an inventory of all debts, monthly living expenses, current income sources, tax returns, assets, deeds, and titles.

4. File the Petition

Regardless if you are filing Chapter 7 or Chapter 13, you must submit the petition and all supporting documents at the Alabama district bankruptcy court where you live. Expect to pay a filing fee at this time. Those who are declaring Chapter 7 may qualify to pay it in installments. 

5. Liquidate Assets or Devise a Repayment Plan

At this stage, those who filed Chapter 7 will begin gathering nonexempt assets to pay back their creditors. Individuals who filed Chapter 13 will come up with a repayment plan that meets the court’s requirements.

Approximately 30 days after filing, petitioners must attend the first meeting of creditors. During this meeting, creditors may object to the proceedings or the proposed repayment plan. Once any disputes resolve, those who filed Chapter 13 will attend a hearing where their payment plan will be confirmed, whereas those who filed Chapter 7 can expect their debt to discharge.

If you want to discharge debt and need help navigating the filing process, turn to Padgett & Robertson, Attorneys at Law. They have been representing clients throughout southern Alabama since 1978. Whether you want to file for Chapter 7 or Chapter 13, they will ensure you are in a much better financial position when all is said and done. Visit their website, or call (251) 342-0264 to schedule a free consultation with a bankruptcy lawyer today.