Whether you've lost your job or find yourself facing massive, unexpected medical bills, filing a chapter 7 bankruptcy may be the only way to get a second financial chance. While the court allows you to completely eliminate all or most of your unsecured debt, the trustee will liquidate some of your property to pay back some of your creditors. However, as the bankruptcy attorneys at The Gil Law Firm in Dothan, AL explain, the law provides exemptions that allow you to keep many of your valuable belongings, including your home, vehicle, and trade tools, among others.
If your mortgage lender has begun foreclosure proceedings against your home, debt collectors are harassing you with phone calls, or creditors have begun garnishing your wages, filing for bankruptcy includes an automatic stay that immediately puts a stop to all of these activities. For many borrowers, the peace of mind alone is worth going through the complex process.
Not everyone is eligible to file for a chapter 7 bankruptcy. Applicants must pass a “means test,” showing that they don't have sufficient income to pay back their debts. Those who do must file for a chapter 13 bankruptcy instead. Individuals who have received a chapter 7 bankruptcy in the past eight years or a chapter 13 in the past six are ineligible, as well as those who may be attempting to defraud the court or their creditors.
Navigating the bankruptcy process is complex, but the experienced specialists at The Gil Law Firm will help. Visit their website to learn more or call (334) 673-0100 to schedule a consultation today.