Unemployment, illness or divorce can cause a person who is usually financially responsible to fall behind on their bills. When you don’t make your payments, your creditors charge additional interest and late fees, making the bills even harder to pay. Eventually, the bill collectors start calling and if you don’t have the money to pay them, the conversation can be difficult. Fortunately, if you are in this situation, an Attorney in Birmingham AL may be able to help you solve your problem.
Many people utilize the bankruptcy code when they have unmanageable debt. Bankruptcy legally releases you from your medical and credit card debts. There are some income restrictions to Chapter 7 bankruptcy. There are also restrictions on the types of debts that can be discharged. Obligations that are secured by property can’t be erased through the bankruptcy court. Other obligations that cannot be discharged include child support, alimony and student loans. However, by getting relief from your unsecured debts, you may be in a better position to pay your court ordered family support and educational loans.
Another option that an Attorney in Birmingham AL can help you with is Chapter 13 bankruptcy. By taking this route, you won’t immediately get your debts discharged by you can enjoy other benefits. You’ll be able to keep your home and automobile and spread your work out a payment plan that allows you to catch up on your bills over an extended period of time. If you don’t qualify for Chapter 7 protection because you have too much income or assets or you want to keep your personal property, contact an attorney such as Forstman & Cutchen LLP to find out if Chapter 13 would help you resolve your personal debt problems.
With the help of your attorney and two mandatory credit counseling sessions, you can get your finances back on track. Over time, you may be able to reestablish your good credit rating and gain the trust of lenders. Many people who file for bankruptcy protection are able to qualify for a mortgage loan within five years of their discharge by following the sound advice of their attorney and credit counselor.