DOTHAN BANKRUPTCY ATTORNEYS
What is Chapter 7 Bankruptcy and How Much Does it Cost?
Chapter 7 bankruptcy is a type of financial relief available under the Bankruptcy Code. If you have no equity in your home, no other equitable interests, and there is a substantial amount of unsecured debt, then you should speak with a Dothan bankruptcy lawyer to see if you are eligible to file Chapter 7 bankruptcy. Chapter 7 allows an individual to eliminate all unsecured debt in most cases as long as you do not have any non-exempt valuable assets.
Some examples of unsecured debt are medical bills, payday loans, and credit card debt (which can be completely discharged in Chapter 7). There are certain tests that must be performed by your bankruptcy lawyer to see whether you are able to file Chapter 7 bankruptcy that concern such things as income level, past bankruptcy filings, and other such considerations.
When your petition is filed by your bankruptcy lawyer, an Automatic Stay of Protection goes into effect ordering that creditors must immediately cease from harassing you or making any attempts to collect on the debt. If they persists then the court can find them in contempt.
After filing the case, you and your bankruptcy attorney will have to appear at a meeting of the creditors (which is a meeting with the bankruptcy trustee where they will ask you a few questions under oath about your petition and financial situation). The creditors hardly ever show up for this meeting and it usually does not take very long. If there are no complications with the information in the petition and no objections then, usually, this is the only appearance that you would have to go to and the discharge is granted without having to go before a judge.
We charge $850 for our attorney’s fees in most Chapter 7 bankruptcy cases, and some of the other costs under this Chapter are such things as the filing fee of $306 that goes to the Bankruptcy Court, the cost of your online credit counseling course (which is usually around $35), cost of debtor education (usually around $10) and cost of credit reports (sometimes can costs around $30). As you can see, the total costs for our bankruptcy attorney to file a Chapter 7 bankruptcy for you in Dothan, Alabama is usually a little over $1,200.
Dothan Chapter 13 Bankruptcy Lawyer
If you cannot file Chapter 7 bankruptcy or wish to keep certain property and would not be able to in Chapter 7 bankruptcy, then you should consider Chapter 13 instead.
By filing Chapter 13 bankruptcy you and your lawyer are able to develop a payment plan to repay all or part of your debts over a three to five year period. Much of this depends on whether the debtor’s income is below the state median income. The most important aspect of Chapter 13 is for you and your bankruptcy attorney to develop a manageable plan.
If you own a home, then filing Chapter 13 allows you to continue making payments and not have your assets liquidated. It can also halt a foreclosure process and allow you to become current on your mortgage. The attorney fees in Chapter 13 are spread out over the three to five year period and paid through the plan.
Chapter 13 costs $274 for the filing fee and most of the attorney fees are included in the payment plan. If you are in or around the Dothan area and are considering filing for debt relief under the Bankruptcy Code, then give our Dothan bankruptcy lawyers a call today for a consultation.