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Law Offices of Ferguson & Ferguson

BEST BANKRUPTCY LAWYERS NEAR ME IN HUNTSVILLE AND DECATUR AL

Do you have more bills than you can pay? Are creditors ringing your phone off the hook day and night? Do you have credit card debt and medical bills you can’t pay? Is a lender threatening to foreclose on your home or other real property, or threatening to repossess your car? Are you considering bankruptcy, but don’t know where to start? We understand what you are going through, and we are here to help.

From January 1, 2021 through August 30, 2021 Alabama had the highest bankruptcy rate per consumer, at 0.14, which is equivalent to 14 bankruptcies for every 100 residents. Alabama significantly leads all other states for the average number of bankruptcy filings per consumer. Further, the average credit score here is the third-lowest among all states analyzed. Contributing factors could be that Alabama is the state with the seventh highest level of poverty, according to the U.S. Department of Agriculture. The state also has one of the lowest personal income levels in the country (ranked 48th), according to the U.S. Bureau of Economic Analysis. Alabama consumers average $72,062 in personal debt and an average FICO score of 691. Among the 10 states with the most bankruptcy filings, more than half are located in the South (Alabama, Arkansas, Georgia, Kentucky, Mississippi and Tennessee).

The higher debt load doesn’t necessarily translate to higher bankruptcy rates. Some states with the highest average debt loads had the lowest number of bankruptcy filings. Washington, D.C. consumers have an average debt of $158,771 per person on average—but its bankruptcy rate is third lowest, at just 0.03. This is most likely because they are areas with a high cost of living, but higher salaries.

From January to July 2021, almost 249,329 people filed for bankruptcy. The states with the most bankruptcy filings were:

• California: 25,555
• Florida: 18,960
• Illinois: 12,703
• Ohio: 12,662
• Georgia: 12,139

But the numbers are much different on a per-capita basis. From January to July 2021, the states with the most filings per 1,000 residents were:

• Alabama: 3.13
• Nevada: 2.85
• Tennessee: 2.49
• Indiana: 2.29
• Kentucky: 2.17

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is often referred to as a “fresh start” bankruptcy. It is called that because most (but not all) unsecured debts are discharged (i.e. eliminated) such as credit card debt, phone bills, utility bills, medical bills, and unsecured loans.

The United States Bankruptcy Code, sets the qualifications for who can file a Chapter 7 bankruptcy. They are:

• No prior bankruptcy in the past 6-8 years (depending on the type of bankruptcy previously filed)
• Pass the means test

Chapter 7 Bankruptcy Process

Step 1: Consultation

• Normally 45-60 min. FREE consultation

Step 2: Bring in Paperwork

• Meeting where you bring in worksheets and paperwork

Step 3: Review & Sign

• Review and sign paperwork

Step 4: 341 Meeting

• Approximately six weeks after filing
• 5-10 minutes after case called
• Asked questions by bankruptcy trustee to verify information

Step 5: Discharge

• Approximately 60 days after your 341 meeting

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is sometimes referred to as a “repayment” or “reorganization” plan because debtors pay some or all of their unsecured debts (interest free) over a 3-5 year plan. Your payment is based on what you can afford to pay (income minus expenses). The debtor must have the ability to make a payment on a bankruptcy plan.

Chapter 13 Bankruptcy Process

Step 1: Consultation

• Normally 45-60 min. FREE consultation

Step 2: Review & Sign

• Meeting where you bring in worksheets and paperwork

Step 3: Review & Sign

• Review and sign paperwork

Step 4: 341 Meeting

• Approximately six weeks after filing
• 5-10 minutes long after case called
• Asked questions by bankruptcy trustee to verify information

Step 5: Confirmation Hearing

• You may or may not need to appear
• Court approves repayment plan

Step 6: Discharge

• Discharge after payments finished (normally 5 years)

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