In Alabama, chapter 7 bankruptcy requires claimants to follow specific rules. Initially, the claimant must attend a credit-counseling program to prepare them for bankruptcy. The instructor provides the claimant with a certificate of completion for the program. A Chapter 7 Bankruptcy Attorney in Wetumpka AL can explain additional facts about filing for bankruptcy.
Who Decides What Assets are Sold?
The court determines what assets are sold through chapter 7. Any assets that aren’t exempt are sold to acquire proceeds. The consumer doesn’t make any decisions about what assets are sold. All deeds and titles are turned over to the bankruptcy court when the claim starts. The court assesses the value of each asset before any sales or auctions are conducted.
When Does the Claimant Receive Exempted Values?
The exempted value is provided to the claimant after the debts are paid. The value obtained after the sale of the asset depends on the type of asset and bankruptcy guidelines. The court issues a check to the claimant for all exempted values for all assets sold.
Can the Claimant Manage the Sale of Their Assets?
The Elmore County court assigns a trustee to manage the sale of all assets. The trustee determines what methods are most viable for selling the properties or assets and maximizing proceeds. All funds are collected by the trustee and distributed to creditors according to the terms of the claim.
How Long Does the Bankruptcy Remain on the Consumer’s Credit Reports?
The bankruptcy case remains on the claimant’s credit reports for up to ten years. While the listing could present difficulties, all debts included in the claim are removed once they are settled. Overall, the consumer gains the ability to start over and repair their credit rating.
In Alabama, chapter 7 bankruptcy provides consumers with a clean slate. The legal action allows the claimants to pay off debts within six months. The debts are paid with proceeds that are generated from the sale of the claimant’s assets. Consumers who wish to start a claim contact a Chapter 7 Bankruptcy Attorney in Wetumpka AL through Courtney & Mann LLP right now.