Bankruptcy doesn't have to be something bad.
It can actually be the start of something good.
Your situation is unique, and it's personal.
Your attorney should be as well.

Debts that may remain after a bankruptcy procedure

Though filing for bankruptcy can be the ultimate recourse for some individuals who have been left with overwhelming debts, people should understand that in some instances there are debts that may still remain that debtors need to settle. Below are the following debts that cannot be relieved by a Chapter 7 or Chapter 13 bankruptcy filing:

  • Debts incurred from other parties claiming a drunk driving injury
  • Any debts that were not included after filing for bankruptcy
  • Unsettled criminal fines or any unsettled traffic fines

Individuals who have these kinds of debts should know they are obliged to settle them in full, whether they filed for bankruptcy or not. In the tough situation that you are considering filing for bankruptcy, working with a skilled attorney is important to help you clearly understand your situation and the complex filing process. Find out how a Birmingham attorney at Greenway Bankruptcy Law, LLC can help you today by calling (205) 324-4000.

Consumers may be protected against ‘debt traps’

Taking action to limit the impact of short-term loans, like payday loans, is being considered by the U.S. Consumer Financial Protection Bureau in an effort to protect consumers against loans that can become “debt traps,” according to its director recently.

Payday loans are being addressed by the agency to protect consumers by the potential abuses they can cause. The action to protect consumers from “debt traps” is being analyzed in addition to the need to preserve access for those with responsible credit because there’s a clear demand for short-term loan products. However, certain users of this type of loan can actually get hooked when they want to cover old loans by taking out new ones.

Depending on the terms and conditions of the short-term loans, it can harm consumers rather help them.

Another option for people facing financial difficulties, particularly when the financial problems are extensive and overwhelming, is to file for bankruptcy. Learn about your options by talking with an attorney from Greenway Bankruptcy Law, LLC Call (205) 324-4000 today to discuss your situation.

Chapter 7 Bankruptcy and the Means Test

Determining  whether or not to file for bankruptcy can be a difficult and drawn out decision. There are several factors that someone should consider when making this decision, and experienced professionals should be on hand to assist in the process. The two main types of bankruptcy are Chapter 7 bankruptcy and Chapter 13 bankruptcy.

Chapter 7 bankruptcy can allow an individual to dispose of their debt at a more rapid pace than Chapter 13 bankruptcy. Chapter 7 is a form of bankruptcy protection that is usually classified as liquidation bankruptcy. A person’s assets which are considered non-exempt will be sold, liquidated, and the profit from those sales will directly benefit creditors associated with the filing.

Assets are categorized as exempt and non-exempt items. Common items that are deemed exempt, which means they cannot be liquidated in the bankruptcy filing, include earned damages, cars, and clothing. Non-exempt items can include stocks, second vehicles, and cash, but these are ultimately determined by an appointed bankruptcy trustee.

If an individual determines that Chapter 7 bankruptcy protection is the right course for them, they must first pass the means test in order to be considered for this type of protection. If an individual earns an income that is considered to be lower than the median income of their state, then they do not have to pass the means test and can proceed with the Chapter 7 bankruptcy filing. All other individuals must pass this test before they can file.

The means test is a comparison test in some regards, as it compares an individual’s earned monthly income to the state’s average income. If the income is determined to be higher than the median, a person’s net income is then calculated. If the net income of an individual can be used to successfully pay off debt within the five year time frame associated with Chapter 13, then the individual is not allowed to file for Chapter 7 bankruptcy. If the net income could not complete this requirement, then the person filing will then be allowed to continue with the Chapter 7 bankruptcy filing.

"When I had my power cut off because I just didn't have the money to pay the power bill, a friend suggested I call Paula Greenway. From the moment I walked in her office I felt like a burden was lifted from my shoulders."
Robin M
"I would just like to say that I was impressed by the staff of Greenway Bankruptcy Law, LLC and their attention to professionalism. They made the bankruptcy process not only pleasant but simple."
Jennifer S.
I can't tell how comforting it is to know your attorney is working on your case. I would and have recommended their service to friend and associates."Ed H.
"I would like to thank Greenway Bankruptcy Law, LLC for the way in which they handled my bankruptcy case."
Robert M.
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Greenway Bankruptcy Law, LLC
505 20th St N #1220
Birmingham, AL, 35203
Phone: (205) 324-4000
Tuscaloosa: (205) 737-3350
Gadsden: (256) 467-6650

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Greenway Bankruptcy Law, LLC All rights reserved. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. The following language is required pursuant to Rule 7.2, Alabama Rules of Professional Conduct. No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

Greenway Bankruptcy Law, LLC 505 20th St N #1220, Birmingham, AL, 35203 | Phone Number: (205) 324-4000 |  Directions | Paula Greenway+