The Bankruptcy Process Laid Out in Six Simple Steps

Although bankruptcy filings began trending downward following the start of the COVID-19 pandemic, it appears bankruptcy attorneys are now beginning to see an uptick in the number of people seeking bankruptcy protection, according to CNBC (1). This is not surprising considering inflation is making it more difficult for individuals and businesses to stay afloat.

If the recent chain of events has caused you to fall deep into debt with no sight of any way out, bankruptcy might be an option to consider and an attorney near you can determine if you qualify.

How does the bankruptcy process work in Alabama?

Although the bankruptcy process might seem daunting, you’ll be able to navigate it much easier with an experienced Springville, AL bankruptcy attorney working by your side. To give you an idea as to how the process works, below you’ll find the six phases you’ll go through, from the time you decide you want to file for bankruptcy to the time you exit the process.

Complete pre-bankruptcy credit counseling.

Before you can file for bankruptcy, you’ll need to complete what is called pre-bankruptcy credit counseling. This must be done within 180 days before you file for bankruptcy in your state.

Get your bankruptcy petition filed.

In order to start the bankruptcy process, you’ll need to file a petition, which marks the beginning of the process. During this time, you’ll be required to submit certain forms and documents to the court. Don’t worry though as a bankruptcy lawyer in Alabama can certainly help you with this.

The court will enforce an automatic stay, giving you some relief from your creditors.

Once the court accepts your bankruptcy petition, an automatic stay will take effect. This means your creditors will no longer be permitted to contact you regarding your debt. The harassing calls and letters will need to stop and any civil lawsuits filed will be changed to pending status.

Attend the meeting of creditors.

The meeting of creditors is a meeting that allows a trustee the time to review a debtor’s petition and schedules (2). It’s also an opportunity for creditors to ask the debtor questions regarding their debt and assets.

Complete a debtor education course.

The debtor education course is meant to help you gain a better understanding of how to manage your finances so that you don’t end up in bankruptcy court again. It must be completed before you receive your notice of discharge.

Receive your notice of discharge.

Your notice of discharge outlines the debt that has been wiped from your record. This means you are no longer liable for paying it back and the creditor can no longer pursue you for money.

It’s worth noting that the steps outlined above only provide a general overview of the bankruptcy process. There are a few additional steps you’ll need to go through and these will vary depending on the type of bankruptcy you file for.

Contact a Springville, Alabama bankruptcy attorney to learn more about the bankruptcy process.

If you’d like a more detailed explanation of how the bankruptcy process works and if you make for a good candidate, contact Hill, Gossett, Kemp & Hufford, P.C. to speak with a skilled AL bankruptcy attorney.

Have questions about this article or a legal concern? Call 800-672-3103.

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