PREPARING FOR A BETTER FINANCIAL FUTURE | EFFECTIVE BANKRUPTCY SOLUTIONS
Millions of people have filed for bankruptcy to help eliminate debt and put them on better financial footing for the future. Despite the fact that it is a very common financial tool, most people are unaware of exactly how it works and when it is the right decision. Attorney Jeffrey Irby works hard with his clients to help them to better understand their particular situation and the bankruptcy laws that may impact them in the months and years to come.
Whether you are deep in debt and completely unable to pay your bills each month, or you’re just struggling to make ends meet, it is always smart to explore all your options. In many cases, bankruptcy is a great way to end the collections calls and prepare you for a stronger financial future. For most people, the two options available will be Chapter 7 bankruptcy and Chapter 13 bankruptcy. Having a good understanding of each of them is a great place to start.
CHAPTER 7 BANKRUPTCY | ELIMINATING UNSECURED DEBT
Chapter 7 bankruptcy allows you to erase, extinguish and have forgiven out some or all of your unsecured debts, and possibly even some secured debts, though you would have to give up the items that they are secured by (typically vehicles). Some common types of unsecured debt include:
Personal Loans (Including ‘Payday Loans’)
If you have a monthly payment on a vehicle, property (including your home), or other secured debt, you will typically have the option to either ‘reaffirm’ these debts or surrender the item and have the debt cleared even if the value of the item is less than what you owe.
Chapter 7 bankruptcy can only be filed once every eight years, which is why it is so important to make sure you avoid the decisions that put you in a difficult financial position to begin with. It is also important to know that not everyone will qualify for chapter 7 bankruptcy. If you make sufficient money to pay your bills, but you’ve just fallen behind, or you make too much money in general, the courts may not approve this option. When this is the case, a Chapter 13 bankruptcy may be an alternate option. Watch Jeff’s video below to learn more.
CHAPTER 13 BANKRUPTCY | CATCHING UP ON PAYMENTS
Chapter 13 bankruptcy doesn’t eliminate your debt entirely but restructures it in such a way that you are able to make your payments. In this type of bankruptcy, the courts will look at your income and your expenses very closely. Based on this information, they will require a set amount of money to be paid to the courts each month for a period of three to five years. The courts will use the money to pay down your debts. Depending on the amount of debt you have, and your income levels, these payments may end up covering the entirety of your debts, or just a portion of it. Under certain circumstances, you may be permitted to pay a percentage back to unsecured creditors.
The monthly payments that are due to your creditors will typically be greatly reduced because the interest rates will be eliminated, and the length of time you have to pay them off may be extended. In most cases, even some debts that couldn’t be discharged under Chapter 7 bankruptcy can be discharged under Chapter 13, which is one of the biggest advantages of this option. Watch Jeff’s video below to learn more.
One of the biggest concerns of our bankruptcy clients is how filing for bankruptcy will impact their creditworthiness, and thus their ability to obtain essential loans in the future, such as a mortgage, auto loan, or even get approved for a credit card. This is why we connect each of our bankruptcy clients with 720CreditScore.com
This credit rebuilding educational website was created by mortgage broker Philip Tirone, whose “7 Steps to a 720 Credit Score” system reveals the rules of the credit industry, giving consumers all the information they need to know to increase their credit scores and save thousands of dollars over the course of their life. 7 Steps to a 720 Credit Score is a strategy that teaches you how to improve your credit score based on patterns of change Philip Tirone identified when he studied thousands and thousands of credit reports.
Attorney Jeffrey Irby has seen how big an impact this system can have on improving his bankruptcy clients’ credit scores, which is why he now provides it at no additional charge to each client who has a successful bankruptcy case. Attorney Irby does not actively engage in credit repair services. He simply provides the educational class to his clients free of charge after their bankruptcy concludes. Watch the short video below to learn more.
CONTACT US TO REVIEW YOUR OPTIONS
The type of bankruptcy you choose will depend on a variety of factors. In some cases, you will only qualify to use one or the other. In other situations, you will be able to choose whichever one works best in your particular case. To learn more about each of these options, and how they apply to you, please contact us to set up a consultation with an experienced bankruptcy attorney in Huntsville, Alabama.