In Alabama, bankruptcy is a process that helps consumers settle their debts quicker. The claims are available through two different chapters. Through the chapters, the claimant either liquidates their assets or starts a new payment plan. Bankruptcy Lawyers in Wetumpka AL provide important details about bankruptcy and how the claims benefit consumers.
What Does a Reaffirmation Agreement Involve?
Essentially, the claimant is confirming that the debt is valid and their responsibility. If the debt isn’t paid off during bankruptcy, the claimant must repay it. Typically, the same payment agreement that applied before bankruptcy is followed. Reaffirmed debts are not discharged through a bankruptcy.
Are Most Credit Cards Dis chargeable Under Alabama Laws?
Yes, unsecured credit cards are discharged during chapter 13. However, the charges must occur at least sixty days before the claimant starts their claim. The claim allows the discharge of credit card charges that are over $1,150 for luxury items as well.
Does the Bankruptcy Claim Affect Co-Signers?
Co-signers who helped the consumer secure a loan won’t incur any effects from the bankruptcy. It won’t appear on the co-signer’s credit history. If the debt is paid in full, the account is closed on the co-signer’s credit report.
Are There Limitations on How Many Bankruptcy Claims a Consumer can File?
No, the claimant can file as many bankruptcy claims as they need. There isn’t a waiting period between bankruptcy claims. Any consumer who wants to continue these efforts can file repeatedly if they wish.
Are Couples Required to File for a Bankruptcy Together?
No, couples can file their bankruptcy claims separately. However, the couple receives double exemptions if they file together. On the other hand, if the couple files for a divorce, both parties are responsible for the payments.
In Alabama, bankruptcy claims provide exemptions based on the equity accumulated for assets. The process also allows discharges for unsecured debts such as credit card accounts. An attorney gives consumers all the information they need to start their claim and become debt-free. Claimants who are ready to file contact Bankruptcy Lawyers in Wetumpka AL through Courtney & Mann LLP and schedule an appointment now.