Chapter 7 Bankruptcy

Friday, April 17, 2020

Wild Cards Do More Than Help Get Your Team In The Playoffs, They Are An Important Bankruptcy Tool

In sports, a team awarded a wild card slot gets to go to the playoffs even though they failed to qualify in the normal way. This prevents teams in really strong conferences from being excluded while weaker teams in less competitive conferences get an easy berth in the playoffs. It’s all about making the system fairer.

In the bankruptcy world, the term “wild card” is used to describe a type of exemption that can be used by a debtor to save (aka exempt) a particular piece of personal property from being sold off or returned to creditors. Once again, fairness is the justification.
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Thursday, November 7, 2019

The Bankruptcy Backhoe: Digging You Out Of Debt

Credit cards are a tricky tool to master. They can be a ladder that helps you finance a purchase that improves your quality of life, or a shovel that helps you dig a dangerous pit of debt. 

Sometimes all it takes is one misstep for you to fall off the ladder and into the pit. A layoff, a health issue, or car troubles could force you to take on more credit card debt than you would like. Suddenly, you are so far in debt you realize there is no way you can crawl out.
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Monday, November 12, 2018

Medical Debt After Death

One of the hardest things to deal with after a loved ones dies is the fact that life goes on without them. Even though they are no longer at your side, you still get telemarketers calling for them, Facebook notifications when they are tagged in a photo, and mail addressed to them. Many widows and widowers even get bills for the end of life care their spouse received addressed to the deceased spouse. It’s like rubbing salt in an open wound, and it is also the source of a lot of anxiety.

Just who is responsible for medical debt that accrued at the end of a loved one’s life? The answer to this question is every lawyer’s favorite answer: it depends. Whether a surviving spouse is responsible for paying for a deceased spouse’s end-of-life medical care depends on how the debt is structured and whether the deceased spouse’s estate has enough money in it to cover all its costs.

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Monday, November 5, 2018

Getting Rid Of Credit Card Debt

The average Alabama resident has $7,105 in credit card debt. This is a significant chunk of change, which is probably why credit card debt is one of the number one reasons people file for bankruptcy.

Unlike many other kinds of debt, credit card debt can be fully discharged, or wiped out, through the bankruptcy process. Most people who are struggling to pay off credit card debt prefer to file under Chapter 7 rather than Chapter 13 of the bankruptcy code because they want their credit card debts forgiven.

Forgive and Forget or Pay it Back?

Whether your credit card debt can be forgiven typically depends on what chapter of the bankruptcy code you file under.

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Friday, August 31, 2018

How Much Does It Cost To File For Bankruptcy? Chapter 7 vs. Chapter 13

One of the things a lot of our clients find frustrating is that filing for bankruptcy is not free. It seems to them that the government should understand that the people who are filing do not have extra money to spare. We understand this, which is why we work with our clients to make sure they can afford the legal help they need.

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Saturday, January 20, 2018

Court Shortens Time Period For Creditors To Make Claims

A college football game has four, fifteen-minute, quarters. College basketball players get two, twenty-minute, halves. Hockey players skate three, twenty-minute, periods. These game clock rules were shaped by tradition, but today are mandated by the governing boards that oversee each sport. The legal world operates in a similar fashion.
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Monday, October 16, 2017

This Is Heartbreaking

There are plenty of people the bankruptcy system fails. Sadly, those people are often poor African Americans. A recent article in The Atlantic Monthly revealed this problem that is so evident to those of us working in the system to the rest of the world by doing a deep dive into the Memphis courts, which are notorious for being full of repeat filers who are just trying to keep their utilities on.
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Sunday, August 20, 2017

What is Normal?

One of the questions a lot of our clients ask is whether their particular situation is normal. Our response is almost always yes. Most people coming to us are

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Monday, July 31, 2017

Medical Debt Is One Of The Biggest Drivers Of Bankruptcy

One of the scariest things about having a medical emergency or lingering illness is the pile of bills that comes along with it. Just when you need to focus your energy on healing, your attention is drawn to the ever-increasing stack of bills the mailman has dropped off. 

Even if you have insurance, out-of-pocket medical costs can accumulate quickly. A recent article in the Atlantic Monthly reported that “half of all insurance policy-holders faced a deductible, the amount people need to pay on their own before their insurance kicks in, of at least $1,000. For people who buy their insurance via one of the Affordable Care Act’s exchanges, that figure will be higher still: Almost 90 percent have deductibles of $1,300 for an individual or $2,600 for a family.

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Saturday, May 27, 2017

Loans From Payday Lenders Add Up Fast

When you have an emergency and need cash right away, there are only so many places you can turn. Your family and friends might be able to lend you money. You might have room on your credit card for a few more charges. Or you might get a payday loan.

Payday loans, also known as cash advances or check advances, are short-term loans that are theoretically supposed to be paid back out of your next pay check.

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Sunday, March 26, 2017

How Many Times Can You File For Bankruptcy?

How Many Times Can You File For Bankruptcy?

During the recent presidential campaign, now-President Trump’s multiple bankruptcies were discussed quite a few times. He made it clear that he has never filed for personal bankruptcy, but that he has been more than happy to take advantage of the bankruptcy laws when his businesses were in trouble. In fact, Trump-owned businesses have filed for bankruptcy four times.

When the news started to spread that Trump’s businesses had filed for bankruptcy more than once, several people reached out to our firm and asked if filing for bankruptcy multiple times was something “normal people,” aka not billionaires, could do. The short answer is yes, you can file for bankruptcy as many times as you need to.

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Padgett and Robertson assist clients with Bankruptcy, Personal Bankruptcy, Consumer Bankruptcy, Chapter 7 Bankruptcy, Chapter 13 Bankruptcy and The New Bankruptcy Law in Mobile, Alabama and throughout southern Alabama. Alabama State Bar Association Regulations require the following: "No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers." 11 U.S.C. 528 of the U.S. Bankruptcy Code requires the following: "We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”

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Alabama State Bar Association Regulations require the following: "No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers." 11 U.S.C. 528 of the U.S. Bankruptcy Code requires the following: "We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”