No, you can file for bankruptcy more than once if needed. In fact, you can file for Chapter 7 bankruptcy once every eight years. Similarly, you can file for Chapter 13 every two years (however, the three-to-five-repayment timeline of Chapter 13 makes filing in such short succession less common).

Of course, filing for bankruptcy more than once is not a decision to take lightly. If you are considering it, do not hesitate to contact my firm to learn about your options and determine if it is the right move for you.

It is a common misconception that bankruptcy can eliminate all debts. While it can provide significant relief and discharge most consumer debts, certain types of debt cannot be discharged.

These include:

• Child support
• Alimony
• Student loans (in most cases)
• Recent tax debts

One of the most common concerns about bankruptcy is how it will affect a credit score. While it is true that filing for bankruptcy will initially lower your credit score, it can also be a positive step towards improving your credit over time. By eliminating or restructuring debts, you can rebuild your credit and improve your financial stability.

Contrary to popular belief, bankruptcy does not stay on your credit report forever. Chapter 7 bankruptcies are typically removed from credit reports after 10 years, while Chapter 13 bankruptcies are removed after 7 years. This means that with responsible financial management and timely payments, you can rebuild your credit relatively soon after filing for bankruptcy.

There is no simple. It depends on the form of bankruptcy, type of debt, status of the debt, and other factors. Generally, filing for bankruptcy does not make your co-signer more responsible for the debt. However, if you co-signed a loan or share tax debt from a joint tax return in Alabama, you are still fully responsible for the entire debt—no matter if you are listed as the main signer or the co-signer.

Let us explore some specific details:

Co-Signers & Chapter 7

In a Chapter 7 bankruptcy, you can choose to keep a secured debt (like a car loan) by reaffirming it, but you will need approval from the court and the lender. Usually, the lender will require you to be current on payments and have insurance on the item (like the car) before agreeing. If you reaffirm the debt and keep making payments, your co-signer will not be impacted by a bankruptcy filing. However, unsecured debts (like personal loans or leases) cannot be reaffirmed. In those cases, your co-signer will be responsible for the debt, just as they were before the bankruptcy.

Co-Signers & Chapter 13

In Chapter 13 bankruptcy, there is a rule (found in 11 U.S. Code Section 1301) that can protect your co-signer on a consumer debt. If your repayment plan includes paying off the debt in full, the creditor cannot go after your co-signer for payment. This is one reason some people choose Chapter 13 over Chapter 7.

However, sometimes, you might not be able or willing to protect your co-signer. For example, if the co-signer does not have any money or assets the creditor can take (“judgment proof”), it might not make sense to include the debt in your plan. Keep in mind that tax debt is not considered a consumer debt, so this protection does not apply to joint tax liabilities.

Bankruptcy does not necessarily impact your relationships with credit unions or other financial institutions. Still, it is important to know that they may have their own policies regarding bankruptcy filings. Communicating openly and honestly with your creditors about your situation and any bankruptcy filing plans is wise. Doing so can help you navigate potential changes in your relationship with the institution.

My team and I can often fashion legal strategies that preserve relationships with local financial institutions.

Despite the stigma surrounding it, filing for bankruptcy does not make you financially irresponsible. Many people who file for bankruptcy do so as a last resort after struggling with unexpected financial hardships such as job loss, illness, or overwhelming debt. Bankruptcy is a legal tool designed to help you get back on your feet.

Technically, no. You could file for bankruptcy independently by filling out and submitting paperwork to the relevant Alabama bankruptcy court. Of course, this is not advisable. The American Bankruptcy Institute, for example, highly recommends that would-be filers enlist the help of an attorney.

There are many reasons for this, such as:

• Missteps in filing that could result in your case being thrown out
• Loss of property that might otherwise be protected
• Failure to file proper paperwork, which could lead to a delay or denial of your discharge

Remember, filing for bankruptcy is a long-term decision. It is not something to take lightly or rush through without professional guidance.

It depends on several factors, such as the type of bankruptcy, your specific financial situation, and whether challenges arise before or during your filing. Generally speaking, Chapter 7 cases take about three to six months, while Chapter 13 cases can take three to five years. These timelines are not set in stone and can vary depending on your circumstances.

One of the biggest advantages of bankruptcy is that, once you file, you get an automatic stay. This means that creditors are no longer allowed to take action against you and must stop collection efforts. This includes phone calls, letters, lawsuits, wage garnishments, and other debt collection attempts. The automatic stay remains in effect until your bankruptcy case is resolved or the creditor receives permission from the court to resume collections.

Creditors and debt collectors cannot do whatever they please in an attempt to collect a debt. There are laws, like the Fair Debt Collection Practices Act (FDCPA) and the Telephone Consumer Protection Act (TCPA), that protect you from harassment and abuse by creditors. If you have been harassed or abused, I can take legal action against them.

My attorney fees for Chapter 7 filings start at $700. For Chapter 13, my fees are included in the debt repayment plan you will create. My fees are competitive, and I offer flexible payment plans, which can make getting the help of an experienced lawyer more accessible for you.

Apart from attorney fees, you will also need to pay a filing fee to the bankruptcy court, which varies by bankruptcy type. However, if you cannot pay the filing fee, you can request a waiver or installment plan from the court.

If you are considering bankruptcy as a debt relief option, the best way to get started is by scheduling a free consultation with my firm. During this meeting, we can discuss your financial situation, go over questions or concerns, and determine if bankruptcy or other legal avenues are best for you.

For this meeting, you should bring a 60-day record of your most recent pay stubs and tax returns. Additionally, my team and I will need as many billing statements as possible, proof of a Social Security number, and a valid photo ID (such as a driver's license).

Once we receive all the documentation, we have a 48- to 72-hour turnaround time. My team works as quickly as possible to file your case, protect your assets, and get you on the path to financial stability.