Which Type of Bankruptcy is Right For You?

Ferguson & Ferguson

Attorneys at Law

February 2nd, 2015

When you think about the ramifications of not being able to pay your bills it’s a wonder anyone borrows money in the first place. Nagging phone calls at dinner time threatening action if you don’t pay, letters in the mail saying that you could be forced to move your family and lose your home, people showing up at your home and office threatening to forcibly take your automobile or motorcycle. Theses events can cause you to lose sleep, lose weight, and even lose your mind! Fortunately there is help for you that can be the first step in stopping the madness, and putting you back in control of your financial situation. All you need to do is to pick up the phone and call the the attorneys at the Law Offices of Ferguson & Ferguson as we are experienced bankruptcy attorneys that can guide you to the best course of action for your individual situation. There is absolutely no need to feel intimidated by the process of bankruptcy procedures. We have 45 combined years of fighting for the consumers of Alabama and we have helped hundreds of families and businesses who have struggled with meeting their debt-related financial obligations.

To help you to get a handle on where you might stand in regard to bankruptcy, here are a few basics that you should try to relate to your personal situation. There are three areas where one seeks protection when filing for bankruptcy. Those areas are protection against ongoing harassment from credit card debt collectors, stoping the bank from foreclosing on your home, and protection from having your vehicle repossessed. Technically speaking, there are three types of bankruptcy filing statuses from which to select to fit your individual situation. They are Chapter 7, Chapter 11, or Chapter 13.

Please note that no matter which type of bankruptcy we choose, all three will provide you with what’s called an “automatic stay” and this simply means that collection phone calls and letters from credit card creditors, garnishment of wages, home foreclosure letters, and repossession attempts will immediately stop.

Chapter 7 Bankruptcy can significantly ease your monthly payment burden by eliminating unsecured debts such as credit cards, personal loans, medical bills and dental bills, and stopping all collection efforts and lawsuits. Chapter 7 will not however eliminate secured debts like car loans and mortgages. If you want to keep your home and your car you must continue to make these payments.

Chapter 11 Bankruptcy is most practical for businesses as it is an overall restructuring of debts. Chapter 11 is rarely used for individuals. The basic benefits of Chapter 11 is that is allows you to keep your business open and running while steps are being taken to restructure your debts and allow you to pay. This type of bankruptcy is very common during economic downturns as business may slow and you might have gotten a little ahead of yourself in expansion, inventory accumulation, hiring etc.

Finally, Chapter 13 Bankruptcy is available for consumers and allows you to lump all your debts into one and make one payment per month based on your current income situation.This type of bankruptcy is referred to as a “Court Ordered Debt Consolidation.” Bank foreclosure, vehicle repossessions, credit card collections efforts and income garnishment will immediately be halted and you will have addressed the untouchable debts like student loans and tax debts which are thrown into the mix.

This essay is not intended to be all-inclusive information on bankruptcy, but simply an outline of what the three basic bankruptcy strategies can do for you. At the Law Offices of Ferguson & Ferguson, we offer a thorough, no obligation, free consultations in all bankruptcy cases. We understand what you are going through, and we are here to help. Our bankruptcy fees are among the lowest in the North Alabama area. We can often quote you a fee immediately when you call after just a few simple questions. We offer flexible payment plans for all matters, and can often file a Chapter 7 bankruptcy the next day. Make sure to call us if you have any questions or want a free phone consultation. Give us a call and see just how affordable our bankruptcy fees can be. CALL NOW. Call 256-534-3435 or 256-350-7200