If you are struggling to pay your bills you certainly aren’t alone. Does it seem like no matter how hard you work you can never get ahead? It can be a helpless feeling and like you are digging yourself into a deeper hole every day that you will never get out of. You’re not sure what to do, but is bankruptcy the answer? Bankruptcy is a legal declaration by a person or business entity that they cannot pay the debts owed. It is usually a last resort for many people, as the damage done to the credit rating can remain for many years. If you have tried negotiating with your creditors, however, but they are unwilling to work with you, you might want to consider contacting a Bankruptcy Attorney in Birmingham, AL.
Once your Bankruptcy Attorney in Birmingham, AL has helped you begin the bankruptcy process, your creditors will have to stop harassing you, which by itself could give you some peace of mind. How your creditors get paid will depend on the type of bankruptcy that you go through. The two most common types on bankruptcy for individuals are chapter and chapter 13.With a chapter 7 bankruptcy, assets that you have will be liquidated in order to pay back creditors. This is the quickest and easiest way to get a bankruptcy over with, as it can be completed in just a few months. The advantage of chapter 7 is that your basic necessities are exempt from being sold so if you don’t have a great deal of assets you may not have to lose much of what you own.
Chapter 13 differs from chapter 7 in that you will not have to sell your assets but you will need to prove that you have regular income. The terms of a chapter 13 bankruptcy will require you to make regular payments towards your debts for a certain period of time, usually three to five years. Before you make any decisions about bankruptcy, be sure to speak to an attorney about your situation. Your bankruptcy attorney at Forstman Cutchen will be able to advise you on what your next steps should be based on your individual needs, so you can put your financial difficulty behind you as soon as possible.
