Wattsville, AL—Bankruptcy is intended to provide individuals who have fallen into a financial rut with a way out. It’s not meant to wipe a person’s financial slate clean after they purposely racked up a substantial amount of money in credit card debt with the intention of not paying it back.

If someone were to spend money frivolously knowing they couldn’t pay it back, they shouldn’t rely on the bankruptcy system to clear their name with the creditors in which they owe. And if they did decide to try and file for bankruptcy, the trustee assigned to their case may either liquidate their assets to pay back their creditors or recognize them for committing fraud.

Therefore, it is not recommended for a person or even a business to intentionally rack up debt only to later file for bankruptcy.


Who qualifies for bankruptcy?


There are different types of bankruptcies a person or business can file for. For instance, if someone was looking to get their credit card and medical debt discharged so they can start fresh, they might consider filing for Chapter 7 bankruptcy. If a business owner isn’t ready to close their doors just yet but can’t seem to get a handle on their debt, they might file for Chapter 13 bankruptcy so they can reorganize.

While a person’s circumstances will dictate the type of bankruptcy they should file for, certain criteria must be met before the bankruptcy court will allow someone to declare bankruptcy. For instance, if a person or debtor’s monthly income is higher than the state median, the Bankruptcy Code says the “means test” must be applied to determine if they are able to file.1


How can a debtor find out if they qualify for bankruptcy?


The best way for a person to find out if they qualify for bankruptcy is to schedule an initial consultation with a Wattsville, AL bankruptcy attorney. An attorney will review a person’s financial circumstances to determine if declaring bankruptcy is the best option for them. An Alabama bankruptcy lawyer will also take the time to explain the bankruptcy process so that an individual or business owner can decide if they want to start the process now or in the future.

Despite the negative connotation bankruptcy carries, it can help an individual get their life back on track by providing them with a clean slate to work with. If someone is considering filing for bankruptcy and they live in Alabama, they are invited to contact Hill, Gossett, Kemp & Hufford, P.C. to discuss their circumstances with a qualified AL bankruptcy lawyer.


Disclaimer: No representation is made that quality of legal services provided is greater than the quality of legal services provided by other attorneys.


Hill, Gossett, Kemp & Hufford, P.C. can be reached at:


Moody Office

2603 Moody Parkway, Suite 200

Moody, Alabama 35004

Phone: (205) 640-2000

Website: www.hwhlawgroup.com


Leeds Office

7900 Parkway Drive

Leeds, AL 35094

Phone: (205) 699-5500


Springville Office

6441 U.S. Highway 11

Springville, Alabama 35146

Phone: (205) 467-2225



  1. https://www.alsb.uscourts.gov/chapter-7
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