Bankruptcy

Whether you’ve experienced a health emergency that required expensive medical treatment, your business failed, or you were unable to pay back loans, you may need to consider declaring bankruptcy.

Bankruptcy can help you start over, free from your debt.

Although many fear the term, declaring bankruptcy can help you start over, free from your debt. 

Filing for bankruptcy will stop repossessions, foreclosures, harassing phone calls, wage garnishments and lawsuits. The team at LaPlante, Merritt, Faulkner, Wilson & Clay, LLC will help you navigate the decision of which type of Bankruptcy, if any, is right for your unique financial situation. Our goal is to make sure you understand if Bankruptcy can improve your situation. 

Types of Bankruptcy
  • Chapter 7, or liquidation bankruptcy, means the court will sell your possessions to pay off as much of your debt as possible. After this process, your debts are discharged.
  • Chapter 11 is only available for businesses and is often called a reorganization bankruptcy. If you own a business and fear insolvency, ask your lawyer about chapter 11.
  • Chapter 13 is for individuals and businesses and involves a repayment plan ordered by the court, usually over five years.

Bankruptcy Exemptions in Alabama

After you file chapter 7 bankruptcy, the bankruptcy court and a case trustee will take over temporary control of your possessions.

However, bankruptcy law in Calhoun County, Alabama, allows for several asset exceptions. The court determines these exemptions by looking at the amount of equity you have in your home, trade tools, insurance, and pension (among other categories). If you qualify, the lenders cannot force the sale of your exempted assets.

An experienced lawyer can ensure that all your exempted assets are protected from lenders. Without legal advice, you may miscalculate your equity and lose an asset that is rightfully yours.

Contact Our Law Firm

If you live in Alabama and believe you cannot pay your debts, contact the experienced legal team at LaPlante, Merritt, Faulkner, Wilson & Clay, LLC. We can help you determine if bankruptcy is the best option for you, and if so, which chapter to choose.

Call us at (256) 236-7354 to schedule a consultation and learn more about bankruptcy and how it can affect your life.