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Bankruptcy law in Tuscaloosa, Alabama, like the rest of the United States, is primarily governed by federal law under the United States Bankruptcy Code. These laws are designed to help individuals or businesses who cannot pay their creditors get a new start by liquidating assets, or by creating a repayment plan. Bankruptcy cases always begin in the U.S. Bankruptcy Court.
Understanding and efficiently navigating bankruptcy laws and procedures can be a daunting task for any individual or business. A lawyer can help you determine if bankruptcy is the best option for you, considering alternative means of addressing financial difficulty. They can advise you on which type of bankruptcy to file, assist you in filing the necessary documentation, and represent you in bankruptcy proceedings. A competent bankruptcy lawyer can provide a wealth of knowledge, experience, and guidance throughout the process.
Although bankruptcy laws are predominantly federal, Tuscaloosa-specific laws and provisions do come into play. Such as Alabama's set of exemptions (assets you may keep). Homestead exemptions, motor vehicle exemptions, personal property, and wage exemptions are all factors that will be considered and need to be understood. It's essential to understand these specifics as they might significantly impact your bankruptcy outcome.
No, certain types of debt, such as student loans, child support and alimony, most tax debts, and debts for death or personal injury caused by driving while intoxicated are usually non-dischargeable.
Chapter 7 bankruptcy is essentially a liquidation where you turn over all non-exempt property to the bankruptcy trustee who then converts it to cash for distribution among the creditors. On the other hand, Chapter 13 bankruptcy is a reorganization where you can keep all your property but must make monthly payments over time to repay all or some of your debts.
Whether you can keep your property depends on the type of bankruptcy you file, the value of the property, and which exemptions you can apply.
Once you receive a discharge, you must wait eight years from the filing date before you file another Chapter 7 bankruptcy. For a Chapter 13 bankruptcy, you must wait two years from the discharge date.
Yes, a bankruptcy can stay on your credit report for up to 10 years and may negatively impact your credit score. However, the impact will lessen over time.
The United States Bankruptcy Court for the Northern District of Alabama, The Alabama State Bar Association, and the Legal Services Alabama are all excellent resources for understanding bankruptcy and related proceedings.
If you believe that you need legal assistance with bankruptcy, seek the counsel of a skilled bankruptcy attorney. It's not advised to attempt to handle bankruptcy proceedings on your own given the complex nature of bankruptcy law, procedure and the potential losses involved.
