Pitts & Zanaty, L.L.C., is proud to introduce bankruptcy practice into the suite of specialties offered to clients throughout the Southeast by our offices across Alabama. Creditors have extensive resources at their disposal to collect your debts. You deserve an advocate in your corner who can protect you from predatory or unlawful practices while guiding you through the process of bankruptcy with compassion and dignity.
While debt consolidation services market themselves as effective solutions—and, indeed, may be suitable for some individual cases—they can't provide all of the legal rights and safeguards that bankruptcy courts can.
Our firm understands the stress of dire financial struggles. Our experienced attorneys specialize in shepherding clients and their families through the complex process of filing for chapter 7 and chapter 13 bankruptcy protection. Though both designations offer relief from many debts, they have unique stipulations that may make one more advantageous for your situation.
If you or someone you know is buckling under the weight of unmanageable debt, then we invite you to explore some facts and frequently asked questions below. This information may help determine if bankruptcy representation by Pitts & Zanaty, L.L.C., is the right solution for you.
Facts and FAQs
What does it mean to discharge debt?
Simply put, a discharge is a bankruptcy court order legally declaring eligible debts forgiven. The discharge applies solely to debts within the bankruptcy schedules taken on prior to filing.
What is the difference between chapter 7 and chapter 13 bankruptcy?
Chapter 7 and chapter 13 bankruptcy are the two types of filings most commonly soughtby individuals. In short, it’s most helpful to distinguish the two by the assets you are obliged to surrender and the timeline on which your debts will be discharged.
- Chapter 7 requires you to relinquish possession of all eligible assets to an appointed trustee for sale in order to pay creditors. Despite this upfront loss of assets, discharge may be entered in as few as 90 days, offering an expedient fresh financial start with no lingering obligations (aside from debts not covered by chapter 7 protection).
- On the other hand, chapter 13 does not require any forfeiture of assets. Instead, you will create and present a repayment plan to the court for approval. If approved, the plan will be administered by a court-appointed trustee. Your employer will make payments from your wages directly to the trustee, who will then disburse them to the creditors owed. Chapter 13 plans may be paid off over three to five years, depending on your qualifications, after which the remaining unsecured debts will be discharged.
Will my credit ever recover from bankruptcy?
Yes, it can, though not quickly. Bankruptcy filings typically remain on your credit report for ten years. If enough missed payments have already impacted your credit such that you are considering bankruptcy, proceeding to file may make the most sense. Know that laws do exist to protect you from unlawful discrimination on the basis of a bankruptcy filing.
I want to file for chapter 7 bankruptcy, but do I have to include all of my accounts?
Though it may seem counterintuitive, many individuals who file chapter 7 bankruptcy choose to keep or reaffirm some debts. Individuals may desire to reaffirm, for example, debt owed on a vehicle they depend upon to get to work so as to avoid repossession. You must report all of your accounts in your petition and schedules but may reaffirm any debt you so choose.
Are there any debts that cannot be forgiven when filing for bankruptcy?
Although many debts can be discharged through bankruptcy, there are categories that neither chapter 7 nor chapter 13 can strike from your financial record.
Those filing for chapter 7 protections cannot discharge the following:
- Most taxes
- Child support/Alimony
- Student loans
- Court fines and criminal restitution
- Debts incurred through fraud or deception
- Personal injury debts incurred due to driving while intoxicated
- Debts paid outside of the plan
- Debts for alimony, support, and maintenance
- Debts for death or personal injury incurred due to driving while intoxicated
- Debts for court ordered restitution or criminal fines
- Student loans
- Installment debts in which the last payment is due after the completion of the date of the plan
- Debts made while the plan was in effect and not paid under the plan
Can tax debts ever be discharged by bankruptcy?
The answer differs on a case-by-case basis. Tax debts are challenging to nullify through any legal process, and, generally speaking, tax debts are given priority for repayment by bankruptcy law. Bankruptcy may temporarily halt the collection of tax debts, but it may not be able to discharge your obligations completely.
Can my creditors continue to contact me after successfully filing for bankruptcy?
No. Your legal protections begin as soon as “Relief Ordered” has been declared for your petition.
Will I have to inform my creditors that I have filed for bankruptcy?
No. The bankruptcy court will notify all of the creditors listed in your schedules by mail of your filing.
I want to file for chapter 13 bankruptcy. Do my creditors have to approve my repayment plan?
No. The court and court alone is the only entity that must approve your repayment plan.
I want to file for chapter 13 bankruptcy. Do I have to attend a hearing?
Generally speaking, those who file for chapter 13 do not have to appear before a judge. You will be required to attend a 341 meeting with your chapter 13 trustee. Afterward,should your repayment plan propose to pay less than 70% of the unsecured debt, you will be required to be present for a confirmation meeting with a judge. That said, the chapter 13 trustee frequently speaks with the judge prior to this formal hearing, and the plan is often subsequently approved without you needing to appear. A lawyer will also occasionally be asked to explain elements of the plan formally in court. Of course, there are countless questions and concerns that come to mind when faced with bankruptcy, and one list can’t account for them all. That’s why you can trust our team of attorneys from Montgomery to Huntsville and everywhere in between. Pitts and Zanaty, L.L.C., is your first line of defense against the intimidating collections tactics. Remember, we work only for you.
Contact Pitts & Zanaty, L.L.C.
If you need to speak with a lawyer about Bankruptcy, contact Pitts & Zanaty, L.L.C. We represent clients throughout Alabama, Mississippi, Tennessee, Georgia and Florida. If you are unable to travel to one of our offices, we can also provide you with information through the mail.
No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.
