Common Bankruptcy Questions
What is Chapter 7 Bankruptcy?
One of the most common bankruptcy questions we hear at Holston & Huntley is “what’s the difference between Chapter 7 and Chapter 13?” Let’s discuss each of these types of bankruptcy, and then we’ll move on to discuss a few other common bankruptcy questions that you may have.
Chapter 7 bankruptcy is a provision of the U.S. bankruptcy code that permits individuals to liquidate assets and discharge debt. Therefore, this form of debt relief is directed towards the most common consumer debts, including: credit card debt, medical bills, judgments and unsecured personal loans. Furthermore, a Chapter 7 Bankruptcy is primarily utilized to eliminate unsecured debt while allowing you to continue paying for your house or car. Lastly, Chapter 7 prohibits your creditors from contacting you about debt and stops all collection activities such as garnishments, repossessions or foreclosures. However, not everyone automatically qualifies for Chapter 7 protection. Contact us if you have more bankruptcy questions about Chapter 7.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is also called a wage earner’s plan. Therefore, Chapter 13 enables individuals with regular income to develop a plan to repay all or part of their debts. Furthermore, under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. However, if the debtor’s current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period “for cause.” If the debtor’s current monthly income is greater than the applicable state median, the plan generally must be for five years. Lastly, in no case may a plan provide for payments over a period longer than five years.
Chapter 13 offers individuals a number of advantages over liquidation under chapter 7. Perhaps, most significantly, chapter 13 offers individuals an opportunity to save their homes from foreclosure. Therefore, by filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. Nevertheless, they must still make all mortgage payments that come due during the Chapter 13 plan on time. Another advantage of Chapter 13 is that it allows individuals to reschedule secured debts (other than a mortgage for their primary residence) and extend them over the life of the Chapter 13 plan. Contact us if you have more bankruptcy questions about Chapter 13.
Common Bankruptcy Questions & Answers:
Q: Must I sell my home if I file for Bankruptcy?
A: No
Q: Can I keep my vehicle if I file for Bankruptcy?
A: Yes
Q: Does my spouse have to file for Bankruptcy with me?
A: No
Q: Do I have to close all my credit accounts if I file for Bankruptcy?
A: No
What Property Can You keep in Chapter 7 Bankruptcy Relief?
This is another of the most common bankruptcy questions we get from our clients. Under Georgia law, some property and income is exempt from being liquidated in Chapter 7 bankruptcy proceedings. Those exceptions include:
- The homestead, up to $21,500 in value
- Income from child support or alimony
- Workers’ compensation
- Veterans’ benefits
- IRAs and ERISA-qualified benefits
- Insurance proceeds
- Motor vehicles, up to $3,500 in value
- Unemployment compensation, Social Security benefits or public assistance
- Aid to disabled persons
- Tools necessary for a particular trade
- Up to $600 of property chosen by the individual
The homestead exception can be critical to someone facing the prospect of foreclosure and eviction. Also, there are other exemptions under Chapter 7, but you should know that filing for bankruptcy has a long-term effect on your credit rating for up to ten years. However, if you’d like more information on whether filing for bankruptcy is right for you, contact us today.
Under Alabama law, some property and income is exempt from being liquidated in Chapter 7 bankruptcy proceedings. Those exceptions include:
The Birmingham, Alabama, bankruptcy lawyers at Holston & Huntley, LLC, represent people throughout Birmingham, Alabama, and surrounding counties who want to restructure or wipe out their debts.
- Homestead: Up to $15,000 in value and up to 160 acres of real estate and the residence upon it, including a house, mobile home or similar dwelling place. Ala. Code 6-10-2
- Personal Property: Burial plot or church pew for use by you or your family. Ala. Code 6-10-5. Clothing, family portraits, pictures and books for use by you or your family. Ala. Code 6-10-6. Life insurance proceeds. Ala. Code 6-10-8
- Retirement accounts and benefits: IRAs, Roth IRAs and retirement accounts qualified under the Internal Revenue Code. Ala. Code 19-3B-508 State Employees’ Retirement Systems accounts and benefits. Ala. Code 36-27-28 Teachers’ Retirement System accounts and benefits. Ala. Code 16-25-23
These are only a few of the most common bankruptcy questions that occur to our clients and others in need of debt relief in Georgia and Alabama. If you have more bankruptcy questions, please don’t hesitate to reach out to us at Holston & Huntley, LLC, today.
Don’t risk attempting to file your petition alone in an attempt to save money. You face a high risk of having your petition rejected if you are unsure how to navigate the Bankruptcy Code. If you have bankruptcy questions, we offer free consultations for both Ch. 7 & Ch. 13 Bankruptcies. Call Us Now at 844.422.8339 (Ga-Buddy). We look forward to serving as your Counsel because we understand your needs.

Tierra Johnson
I just wanted to say thank you to the entire company,throughout my entire incident they worked fast and diligently.They always called,texted and or email me to keep me updated.They always showed great gratitude and always kept me informed. Everyone on this team is awesome.I will definitely recommend anyone here for your injury and/or bankruptcy needs.They will make sure you get the respect and the money you need. Thank you and the whole team.

Kim Smith
I would highly recommend Holston and Huntley. The staff in the office are very nice. Abena was a big help she is the best!! They are very helpful and get everything done in a timely manner. My experience with the firm was GREAT!

Meggine Simmons
Miss Abena is the best, they are working on my case now ,I just love them always kept it 100000000 and I feel like family

Rashad Plumpp
I had an excellent experience with Holston and Huntley. My case/medical expenses were treated with the upmost care and efficiency. I recommend anyone with any type of accident injury to visit Holston and Huntley. Abena Campbell was extremely helpful and made everything convenient and comprehendible about the my case. She was made everything easy as possible. I definitely recommend Ms.Campbell to take of you.

Carolyn Williams
You can count on Buddy and Abena they are awesome. Abena was wonderful, she showed concern for me through my case. Abena walked me through this process like she knew me a long time. I promise you I felt good knowing I was being guided by someone who really cared their staff is awesome. I give them a 10+. Thank you guys, Especially, Abena

Ryan white
My experience with Holston & Huntley attorneys was nothing short of excellent. I worked directly with Abena. She worked hard to get the settlement that I deserved. Continued to stay in contact and keep me updated throughout the long process. Would recommend and work with them again. Thanks Holston & Huntley!

Candice Mitchell
Attorney Huntley and his entire staff was instrumental in getting me everything I deserved. Their patience, kindness, and loyalty to fight for my needs at a critical time proves why they are such a fantastic firm. I would highly recommend them for any of your needs. I personally, will call Mr Huntley if I’m ever in another accident.

Mulobe Mulongo
I was never anxious despite being in this situation for the first time and all the credit goes to you and your firm because you care and know what you are doing.Thanks.

Laurie Jerome
I don’t usually leave reviews on anything but I thought I needed to share my experience with Holston & Huntley. It was great! Very quick and efficient. Buddy and his staff were awesome. I personally worked with Abena and she was always available to answer any question I had. I highly recommend this firm to anyone who needs a professional lawyer that would fight to get you the best settlement you deserve. I promise you won’t be disappointed!! Thank you, Buddy, Abena and staff for all of your help.

Naimah Williams
Holston & Huntley entire team was great to work with!!! Thank you so much
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