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Bessemer, United States is governed by the federal bankruptcy laws, applicable throughout the country, including all of Alabama of which Bessemer is a part. Bankruptcy law allows individuals or businesses who are struggling under significant debt to either get those debts eliminated or to formulate a plan to repay them under the protection of the bankruptcy court. The most common forms of bankruptcy for individuals are Chapter 7 and Chapter 13 bankruptcy, whereas businesses usually file for Chapter 11 bankruptcy.
Navigating the bankruptcy process can be complex and tricky. A lawyer can guide you through the process, offering expertise in filling out and filing the proper paperwork, representing you in court, and negotiating with creditors. They can make sure that you meet all the necessary requirements and deadlines, and they can give advice on the best strategies to protect your assets and discharge your debts. If you need to file for bankruptcy, having a lawyer can significantly ease the process and increase your chances of a beneficial outcome.
While bankruptcy itself is federally administered, some aspects vary from state to state, such as Alabama's laws on exemptions. Under the Alabama state bankruptcy exemptions, the debtor may protect certain types of property up to a certain value from being liquidated in Chapter 7, or from being counted in paying off creditors in Chapter 13. The exemptions include properties like homestead, personal properties, wages, pensions, public benefits, and tools of the trade. However, Alabama doesn’t allow bankruptcy filers to use the federal bankruptcy exemptions. Knowing these local laws could significantly impact your case and this is where an experienced bankruptcy lawyer from the area can be highly beneficial.
While you technically can file for bankruptcy without a lawyer, due to the complicated nature of bankruptcy filing processes, having a lawyer is highly recommended.
In Chapter 7 bankruptcy, you are allowed to discharge all or most of your debts. In a Chapter 13 bankruptcy, you are put on a repayment plan of 3 to 5 years to pay off all or some of your debts.
A discharged debt is a debt that the borrower no longer is legally required to repay. Most unsecured debts can be discharged in a Chapter 7 bankruptcy.
A Chapter 7 bankruptcy can stay on your credit report for up to 10 years, and a Chapter 13 bankruptcy for up to 7 years.
Not necessarily. Bankruptcy law provides exemptions that protect certain kinds of assets, like your home, car, personal belongings, and retirement accounts up to certain values. Your attorney can help you further understand this.
For further help, you can reach out to local non-profit organizations that provide free or low-cost legal aid. You may also seek guidance from the U.S. Trustee Program, that is part of the Department of Justice, as they approve and oversee bankruptcy cases. Also, familiarize yourself with Title 11 of the United States Code (the Bankruptcy Code) and local Alabama bankruptcy law resources.
If you think you are in need of a bankruptcy attorney, you should begin researching for a local Bessemer-based lawyer who specializes in bankruptcy. You should check their credentials, their experience, and their understanding of local law. You may also want to fix a consultation where you can further discuss your situation and the best course of action.
