Is Chapter 7 Bankruptcy Right for Me? | Backus Law Group – Montgomery, Alabama

If you're overwhelmed by credit card debt, medical bills, payday loans, or personal loans, you're not alone—and you may be wondering if Chapter 7 bankruptcy could give you the relief you're looking for. For many individuals and families in Montgomery, Alabama, this form of bankruptcy offers a chance to reset financially and move forward without the burden of unmanageable debt.

At Backus Law Group, we’re committed to helping you understand your legal options and find the right path toward financial peace of mind. But first, let’s break down what Chapter 7 bankruptcy really means—and how to know if it might be right for your situation.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a legal process that allows individuals to eliminate (or “discharge”) many types of unsecured debt. This may include:

• Credit card balances
• Medical bills
• Payday loans
• Deficiency balances from repossessed vehicles
• Personal loans
• Past-due utility bills

One of the biggest advantages of Chapter 7 is that most cases are resolved quickly—often within just a few months. It’s commonly referred to as a “fresh start” bankruptcy because it wipes out many debts permanently, allowing you to rebuild your finances from the ground up.

What Happens to My Property in Chapter 7?

A common concern for those considering bankruptcy is whether they’ll lose their home, car, or other property. The good news is that in many cases, you can keep essential assets if you continue making regular payments and they are protected under Alabama’s exemption laws.

At Backus Law Group, we’ll review your income, assets, and debts to determine what property you can protect. Most clients are surprised to learn how much they are able to keep.

Who Qualifies for Chapter 7 Bankruptcy?

To file under Chapter 7, you’ll need to pass a means test, which compares your household income to the median income in Alabama. If your income is below the state average—or if you have very limited disposable income—you may qualify.

Other eligibility factors include:

• Whether you’ve filed for bankruptcy in the past 8 years
• Whether you've completed required credit counseling
• Whether your debts are primarily consumer-related

If you don’t qualify for Chapter 7, there may still be options through Chapter 13, which focuses on repayment over time. We can help you evaluate both paths.

What Are the Immediate Benefits?

One of the most powerful features of filing for Chapter 7 is the automatic stay, which takes effect immediately upon filing. This stops:

• Creditor phone calls and collection letters
• Wage garnishments
• Lawsuits and judgments
• Bank account levies
• Vehicle repossessions (in many cases)

This legal protection gives you space to breathe and focus on your next steps—without constant pressure from creditors.

Should I File for Chapter 7 Bankruptcy?

Deciding to file for bankruptcy is a personal and often emotional decision. But it can also be a smart, strategic step toward a more stable future. Chapter 7 may be right for you if:

• You have more debt than you can realistically repay
• Your wages are being garnished or you’re being sued for unpaid bills
• You’re behind on credit cards, medical bills, or unsecured loans
• You’re facing harassment from debt collectors

Talk to a Montgomery Bankruptcy Attorney Today

If you’re unsure whether Chapter 7 is right for you, the best first step is a conversation. At Backus Law Group, we provide compassionate legal guidance tailored to your individual circumstances. We’ll help you understand whether you qualify, what to expect, and how to move forward with confidence.

📞 Call our Montgomery office at 334-265-0800 or the Clanton office at 205-755-5208 to schedule a consultation today.
🔗 Learn more: https://www.backuslawgroup.com