In Alabama, bankruptcy gives consumers a chance to manage their debts more effectively. The claimants have the choice to liquidate their assets or restructure the way their debts are paid. The claims provide an opportunity to prevent foreclosure and serious legal issues. Bankruptcy Lawyers in Tallassee AL provide assistance for the claimants and can explain vital details about the case.
The Median Income
The current median income for Tallassee is $38,275. However, the median doesn’t reflect the exact value for each household. The size of the household determines what income value qualifies a claimant for chapter 13 or 7. The income must exceed the median for the claimant’s household size to qualify for chapter 13.
How Equity Affects the Exempted Value
Exemptions are higher for assets that have a lower equity value. The equity is the value that has been paid for the ownership of the asset. The exempted value reflects how much the claimant owes for the asset. A higher exemption value could exclude the asset from liquidation. It could also help the claimant keep certain assets during the bankruptcy.
Restrictions During Bankruptcy
The claimant cannot start any new lines of credit when they file for bankruptcy. If they filed chapter 13, the claimant must use their disposable income to pay off additional debts. However, the claimant isn’t restricted from starting a new job after they filed for bankruptcy. The claimant must report the changes to the bankruptcy court, especially if their wages were garnished during the claim.
Protection Against Legal Action
The automatic stay that applies to the bankruptcy claim prevents creditors from starting a foreclosure. The duration of the stay depends on the chapter chosen. The claimant is at no risk of legal action once the claim is filed. The stay lasts between six months and five years.
In Alabama, bankruptcy is a viable choice for settling debts quickly. The claims provide a way to coordinate debts and make them more affordable or to sell off assets to pay the debts in full. The process requires credit-counseling initially and provides certain protection for consumers. Claimants who are ready to start a claim contact Bankruptcy Lawyers in Tallassee AL through Courtney & Mann LLP today.
