Ask the Attorney: Is Bankruptcy right for me?

Ask the Attorney Columnist James Irby

We’ve received a lot of questions from the last article about Bankruptcy. So, we figured we’d take a few minutes to answer some of those questions. If you have some of your own questions, call JAMES IRBY, 256.766.7778, because we can help you.

1. Can bankruptcy take care of all of my debts?

The simple answer is yes. A bankruptcy can take care of just about all of your debts when properly done. However, there are a few exceptions, child support, alimony, student loans, and often times back taxes cannot be discharged.

2. Can I keep my house?

Most of the time we can save your home. Under a Chapter 7 bankruptcy many items are considered exempt, like some equity in your house, from being liquidated to pay debts. Under a Chapter 13 you will retain the majority of your assets since you will be making payments under a plan that we will help you put together.

3. This is all so confusing! What is the difference between Chapter 7 and Chapter 13?

A Chapter 7 bankruptcy, often referred to as “liquidation,” is a pathway for people under certain circumstances who just need a fresh start. A Chapter 13 bankruptcy is for people who generally have a consistent income and are simply overwhelmed with debt. Give us a call (256.766.7778) and come in for a free evaluation. We will walk you through your options.

4. What about student loans?

Unfortunately, the Bankruptcy Code does not generally allow one to get out from under student loans under normal circumstances.

5. Will bankruptcy get all of these bill collectors off my back?

Yes! Once we file the court will issue what is known as an “automatic stay.” This is a blanket of protection the court provided which will immediately stop all attempts at collection. If somebody violates that stay let us know because you most likely have recourse and can sue them.

6. What about my credit score?

Unfortunately, bankruptcy is going to negatively impact your credit. Most people will see a serious decline in their credit score. But, have no fear. You can still repair your credit after the fact. Bankruptcy is all about a fresh start. We can help you get the fresh start you deserve.

If you have questions about bankruptcy, please give JAMES IRBY, P.C. at 256.766.7778. We can help! We can evaluate your case quickly and professionally so that you will know your options.

James Irby P.C. is committed to helping you and your family. Next week we will explore another legal issue to make sure you have the tools to protect yourself and your family.

James Irby P.C.
120 E. Tennessee Street
Florence, AL 35630


*No representation is made that the quality of legal services is greater than the quality of legal services elsewhere.

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