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  • What happens when you file bankruptcy?

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    Bankruptcy is one of the most misunderstood legal statuses out there. Often, people think bankruptcy happens to those people who are not good at handling their money. While that may be true in some cases, bankruptcy happens due to a lot of reasons, and these reasons are not necessarily bad. Sometimes it could be a result of a sudden accident which your personal injury lawyers in Huntsville AL or bankruptcy lawyers in Huntsville AL suggest you to do. Since you're here, then you might be someone who could be in the middle of this dilemma. Below are the things you need to know:

    Automatic Stay
    When you file for bankruptcy, the first thing your bankruptcy lawyers in Huntsville AL or personal injury lawyers in Huntsville AL would do is get you an "automatic stay". This automatic stay blocks your creditors from collecting your debt. However, this does not mean that your debts will be resolved and go away. You will still have to pay for them but this time through different conditions.

    Different types of bankruptcy

    - Chapter 7 – You are only eligible to file this if you meet a certain requirement. One of them is your income and certain assets. Your personal injury lawyers in Huntsville AL and bankruptcy lawyers in Huntsville AL will help you liquidate your assets which will be used to pay off some of the debt.

    - Chapter 13 – When your bankruptcy lawyers in Huntsville AL and personal injury lawyers in Huntsville AL file under this chapter, then it means that you get to pay off your debts under a plan that spans the next three to five years. The difference from the first one is that you get to keep your assets.

    - Chapter 11 – This is the same with Chapter 13. However, this only applies to businesses. Bankruptcy lawyers in Huntsville AL and personal injury lawyers in Huntsville AL would probably discuss with you a reorganization or restructuring of your company.
    Admin
    Nov 24, 2017
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