Legal Question in Bankruptcy in Alabama

Re: What is Chapter Seven?

Just to add to what Mr. Ford said, don't go get any old attorney. There are a lot of bankruptcy attorneys who do not take the extra care to protect their clients' assets properly. They are usually the cheapest around. You've got serious issues with respect to protecting your retirement plan, and possibly your house. You don't just want a bankruptcy mill attorney - you want someone who really knows their stuff and spends the time making sure it is done right. It's more expensive in the short run, but far cheaper in the long run.

Sterling L. DeRamus

Attorney at Law

2015 First Avenue North

Birmingham, Alabama 35203

Re: What is Chapter Seven?

There are two kinds of bankruptcy for consumer - chapter 7 and chapter 13 (unless you are a FARMER, and then there is another chapter).

Chapter 7 is liquidation.

Chapter 13 is more of a reorganization.

If you are about to lose your home and/or car, you should file a chapter 13 because YOU control the case. In a Chapter 7, the mortgage holder and the car loan folks must AGREE to let you keep your property. THEY DO NOT ALWAYS AGREE!!!! AND you don't get to change your mind in a Chapter 7 about "quitting" bankruptcy for MOST cases. The creditors do not have a choice in a 13 barring some unforseen problem. You get to keep your stuff as long as you can "pay" your case.

If one of you is retired, the issue becomes whether you have access to the entire retirment fund. You NEED to talk to a bankruptcy attorney BEFORE your home is foreclosed on and BEFORE your car is repossessed. Don't be like other folks and ask to talk to someone AFTER the car is repossessed. An Attorney can not help you after the repossession. AND if your home is foreclosed upon (in Alabama that means notice by publication in the newspaper and a sale on the courthouse steps) there is nothing that can be done.

Talk to a bankruptcy attorney on Monday. There should be NO CHARGE for the initial consultation and you are not obligated to file a bankruptcy petition, but you will get more answers either on the phone or in person.

As you are not a client of our firm, the above information is provided as an informative description of the possibilities of the hypothetical above and the reader should not rely upon it as regards their personal situation.