Creditors in Bankruptcy

CREDITORS AND BANKRUPTCY COURT IN ALABAMA

The credit industry wants to discourage you from filing bankruptcy. In an effort to collect on debts, creditors can be aggressive, rude and frequently try to frighten hardworking people. In many instances creditors have options for responding to a bankruptcy but they often give up as soon as they discover a bankruptcy has been filed.

Did You Know?

• A majority of individuals who file for bankruptcy do not lose any of their belongings — Creditors would like you to believe that if you file bankruptcy, you will lose your house, your car and all your personal belongings. The truth is that a majority of petitioners retain all their property.
• After you file bankruptcy, creditor harassment must stop— Once you file, an automatic stay goes into effect, prohibiting creditors from contacting you.
• You have the power to stop a home foreclosure — Filing bankruptcy halts all foreclosure actions, giving you room to breathe.
• You can rebuild your credit — Once your debt is discharged, you will be able to work on repairing your credit score. Many people get approved for a secured credit card or loan within a year after filing bankruptcy. You may even have the ability to avoid high interest rates.
• Most people filing bankruptcy are good people who have fallen on hard times — The credit industry would like you to believe that only deadbeats file bankruptcy. However, a large number of petitioners got into financial trouble because of job loss, divorce or unforeseen medical expenses.
• Bankruptcy offers the best solution to obtain a fresh start after suffering from a financial hardship — Bankruptcy is usually a one-time, one-fee proposition. Your fresh start begins immediately after filing bankruptcy in Alabama.

Non-Dischargeable Debts

A creditor can seek a judgment to keep the debt from being discharged. A complaint must be filed with the bankruptcy court within 60 days from the first date set for the creditor’s meeting.

Generally, the claim or debt must fall into one of several categories:

• the debt was obtained through fraud on the part of the debtor;
• the debtor embezzled assets or breached his fiduciary duty to the creditor; or
• the debtor is liable for willful and malicious injury to the creditor or his property.

Bankruptcy Questions and Answers: FAQ’S

How can I schedule a consultation with a bankruptcy lawyer?

To schedule a consultation with a bankruptcy lawyer, there are two options available. The first option is to call our team directly and speak with one of our lawyers, who will guide you through the process and help find a suitable time for the consultation. Alternatively, you can complete an online form, providing us with your contact information and any necessary details related to your case. Our team will then reach out to you to confirm the consultation and discuss further steps.

How can a debt collection attorney in Huntsville, Alabama help with a debt collection issue?

A qualified debt collection and litigation attorney in Huntsville, Alabama can provide valuable assistance when it comes to dealing with debt collection lawsuits or unfair contracts. With their expertise and experience, they can help clients navigate the legal complexities involved in these situations and work towards achieving a just resolution.

Firstly, these attorneys are well-versed in debt collection laws and regulations. They can analyze the specific details of a debt collection lawsuit and determine whether any violations of rights or unfair practices have occurred. Armed with this knowledge, they can build a strong defense strategy to protect clients from illegal or harsh collections practices.

Moreover, if a client is a victim of an unfair or extremely one-sided contract, a skilled attorney can review the terms and conditions to identify any clauses that may be disadvantageous or unenforceable. They can then advocate for their client’s rights and negotiate for more favorable terms or even seek remedies for contract breaches.

In cases where amicable negotiations fail, a debt collection and litigation attorney is prepared to take a case to trial. Their willingness to litigate demonstrates their commitment to seeking justice for their clients and stopping shady practices. By presenting a compelling argument and utilizing their extensive knowledge of debt collection and contract law, these attorneys can effectively advocate for their clients’ best interests in court.

If you find yourself facing a debt collection lawsuit or dealing with an unfair contract, it is crucial to consult with a qualified attorney. Their expertise and dedication to fighting against creditor harassment and unjust practices can significantly increase your chances of achieving a fair outcome under the law.

What are the available options for debt litigation in Alabama?

In North Alabama, individuals who find themselves entangled in debt-related legal matters have several available options for debt litigation. These options include:

1. Bankruptcy: Filing for bankruptcy can provide relief for individuals facing overwhelming debt by allowing them to eliminate or restructure their debts under the supervision of a bankruptcy court. There are different types of bankruptcy, such as Chapter 7 and Chapter 13, each with its own eligibility requirements and benefits.

2. Debt settlement: Debt settlement involves negotiating with creditors to reach an agreement on a reduced lump-sum payment to settle the outstanding debt. This option can allow debtors to pay off their debts for less than the full amount owed, providing some financial relief.

3. Debt restructuring: Debt restructuring involves modifying the terms of an existing debt agreement to make it more manageable for the debtor. This may involve negotiating lower interest rates, extending the repayment period, or altering other terms of the original agreement.

4. Contracts of adhesion and usury: In certain cases, debt-related legal matters may stem from contracts of adhesion or usury. Contracts of adhesion refer to contracts where one party has significantly more bargaining power than the other, leading to unfair terms. Usury, on the other hand, involves charging excessively high interest rates on loans. In such situations, individuals may be able to challenge the legality or enforceability of the contract or seek legal remedies for excessive interest rates.

It is crucial for individuals facing debt collection lawsuits or encountering illegal or unfair contractual situations to seek guidance from a qualified debt collection and litigation attorney in Huntsville, Alabama. These experienced professionals can provide a comprehensive review of the specific case and outline the various available options during an initial consultation.

Do you have anyone who handles debt litigation?

At our law firm, we specialize in assisting clients who are grappling with their financial obligations by providing expertise in debt litigation. Specifically, we have a dedicated team of bankruptcy lawyers with extensive experience in handling cases related to chapter 7 and chapter 13 bankruptcy proceedings. However, please note that bankruptcy is not the only avenue we explore for those facing debt-related litigation in North Alabama. During your initial consultation, our highly skilled bankruptcy team will carefully examine the specifics of your case and provide you with a comprehensive overview of the various available options.

What type of debt-related cases does your law firm handle?

The law firm handles a variety of debt-related cases, including bankruptcy, debt settlement, debt restructuring, and other less common situations such as contracts of adhesion and usury.

Objection to A Discharge

If the creditor is successful, the debtor is denied a discharge of the debts owed at the time of the bankruptcy.

There are several grounds for objecting to a debtor’s discharge, including:

• debtor failed to keep and produce adequate financial records;
• debtor failed to explain satisfactorily a loss of assets;
• debtor made a materially lie or false statement in his bankruptcy papers;
• debtor failed to obey a lawful order of the bankruptcy court; or
• the debtor fraudulently transferred, concealed, or destroyed property of the bankruptcy estate.

Other Creditor Options

A creditor has other options including:

• Relief from the automatic stay;
• Low dividend Chapter 13 plans; or
• Repetitive Chapter 13 petitions;
• Creditor not listed in plan.

Ferguson and Ferguson Can Help

To learn more about bankruptcy and how the process works, come in today for a free consultation with one of our experienced bankruptcy attorneys. Call 256-534-3435. We are here to help.

Huntsville Office Location:
303 Williams Avenue SW
Suite 321
Huntsville, AL 35801

Decatur Office Location:
211 Oak Street NE
Decatur, AL 35601