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The bankruptcy law in Montgomery, US is governed by federal law under the United States Bankruptcy Code. People or businesses within the area can file for bankruptcy when they are unable to repay their debts. The key objectives of bankruptcy are to give an individual or company a fresh start by liquidating assets to pay their debts, or creating a repayment plan. These procedures are either carried out under Chapter 7, Chapter 11, or Chapter 13 bankruptcy, depending on the specific circumstances of the individual or business.
Bankruptcy involves a complex procedure that requires a detailed understanding of the federal laws, and often involves a great deal of paperwork. Therefore, a lawyer can help you fill out the necessary paperwork, guide you through the process, advise on the right bankruptcy chapter to file under, and represent your best interests in court. A lawyer can also advise you on the potential impact and changes in your life after declaring bankruptcy.
Although bankruptcy laws are primarily federal, Montgomery has its own local court rules that apply to bankruptcy cases. For instance, mandatory credit counseling should occur not more than six months before filing for bankruptcy, along with the completion of a debtor education course after the bankruptcy process. The Alabama homestead exemption allows you to exempt a certain amount of equity in your home or motor vehicle, amongst other exemptions that are unique to Alabama.
Chapter 7 bankruptcy, also known as liquidation bankruptcy, involves selling off your assets to repay your debts. However, not everyone is eligible for this and needs to pass the means test. Chapter 13 bankruptcy, on the other hand, allows you to create a plan to repay your debts over a certain period.
No, not all debts can be discharged in bankruptcy. These may include student loans, child support, alimony, and debts ordered to be paid in legal judgments.
Bankruptcy does have a considerable impact on credit score and will remain on your credit report for 7-10 years. However, over-time you can rebuild your credit score.
Yes, depending on the chapter filed and your circumstances, you may be able to keep your home, car, and other important personal assets.
Yes, you will need to attend a meeting of creditors, also known as a 341 meeting, where your creditors can ask you questions about your bankruptcy and finances.
For further information and assistance, you may wish to refer to local Montgomery bankruptcy lawyers, the United States Bankruptcy Court for the Middle District of Alabama, and the U.S. Trustee Program which enforces bankruptcy laws.
If you need legal assistance with bankruptcy in Montgomery, it is advisable to consult with a bankruptcy lawyer or law firm, who can provide specific advice tailored to your situation. They can discuss your options, potential outcomes, and navigate through the bankruptcy process.
