Bankrupt in Birmingham
Jefferson County Hoping for a Miracle
Leaders meet in Birmingham to try to come up with ways to obtain the money necessary to prevent a record municipal bankruptcy. A judge barred the use of occupational tax revenues and Alabama’s most populous county is now facing a revenue shortage which will require cutting government services to the bone. Birmingham residents are feeling the same pressures and bankruptcy filings are rising rapidly. It is estimated that 1.4 million consumer bankruptcies will be filed in the U.S. in 2009, triggered by the foreclosure crisis and economic downturn.
Birmingham Bankruptcy Legal Advice
The Federal Bankruptcy Law involves processes, procedures and evaluations which can be complex and confusing, including major revisions made in 2005. Seek the advice of a Birmingham law firm with specific long-term experience in Birmingham bankruptcy matters. A competent Birmingham attorney will help you weigh your different options, make informed decisions, help you protect the security of your family and reduce your stress, while facing the realities of the situation.
Increasingly the Most Common Bankruptcy Choice in Birmingham
Chapter 7 is the “fresh start” chapter of the Bankruptcy Code and most commonly used in Birmingham. This filing results in a fair distribution of your available nonexempt property to creditors. Unsecured debts are generally discharged. Included in this process is a “means test”, used to determine your ability to pay your creditors, verifying whether Chapter 7 is appropriate or indicating that you should be filing Chapter 13. Median Family Income by Family Size and current poverty guidelines are factors evaluated when determining appropriate filing status for a given situation.
- If you are at risk of filing for bankruptcy or already in the process, Submit Your Case for a Free Review from a Bankruptcy Attorney in Birmingham, Al.
Debts Usually Not Discharged in Your Birmingham Bankruptcy:
- Taxes owed to government agencies, such as the I.R.S., State, County, etc.
- Student loans (unless undue hardship can be proved),
- Debts incurred after the bankruptcy is filed
- Debts owed to a spouse for divorce-related obligatory expenses
- Debts not listed or scheduled or which the debtor waived discharge
- Debts for willful and malicious injury by the debtor to another person or property owned by another
Rebuild Credit Following Your Birmingham Bankruptcy
Begin working on your credit repair right away. Try applying for credit and once accounts are open use them sparingly and pay them off on time. You do not have to carry a balance on your card. Get a secured loan on a house, car or student loan and at least one credit card or home equity line. Debts often remain active when they should show as discharged in bankruptcy. Contact the credit agencies involved to correct these mistakes.
Take Appropriate Steps Now If You are Considering Filing for Bankruptcy in Birmingham
Birmingham residents continue to suffer, as the State’s economy struggles to recover. Decisions you make and actions you take now can have a positive or negative effect on the outcome of your bankruptcy proceedings. The U.S. Bankruptcy Court cautions that “Bankruptcy has long-term financial and legal consequences -- hiring a competent attorney is strongly recommended.”
