In Alabama, Elmore County courts provide access to chapter 7 and 13 bankruptcies for consumers. These opportunities help consumers avoid foreclosure, repossession, and wage garnishment if approved. A bankruptcy attorney in Wetumpka, AL offers sound advice for consumers who are considering bankruptcy to settle their debts.

What Are the Most Common Exemptions for Bankruptcy?

Under Alabama bankruptcy laws, consumers have access to the homestead exemption and an exemption for certain personal property. The homestead exemption lets consumers protect no more than $5,000 of equity in their residential property. However, the homestead exemption applies to the primary residence only. The personal property exemption offers an exemption of no more than $3,000 for valuables.

Can Spouses File for Bankruptcy Separately?

Yes, state laws allow either party to file for bankruptcy without their spouse. The state isn’t classified as a community property state, and claimants aren’t legally responsible for debts incurred by their spouse in most cases. However, if the individual co-signs or adds their name to a debt owed by their spouse, then they are assuming responsibility for the outstanding balance.

Couples are advised about filing together when bankruptcy is the most effective option for debt settlement. Filing together gives the couple higher exemption values, but it presents liabilities if the couple divorces. For example, if both parties are listed on the claim, then each spouse could face the penalties of a bankruptcy discharge if payments aren’t submitted properly.

Is Bankruptcy Always the Most Suitable Solution?

It depends on the claimant’s current financial status. By filing for chapter 13, the consumer is committing to a 3-to-5-year repayment plan. Claimants have the option to review additional debt settlement solutions before filing for bankruptcy. The attorney provides advice about filing and helps consumers choose the most appropriate solution for them.

In Alabama, Elmore County attorneys help consumers when they are facing overwhelming debt. Bankruptcy is a popular choice for consumers who are facing legal action by creditors. Filing for bankruptcy requires the consumer to enter into a repayment plan or liquidate their assets to pay off their debts. Consumers who need advice can contact a bankruptcy attorney in Wetumpka, AL through Courtney & Mann LLP right now.