Call Cobb Law Firm, LLC, for a Free, No-Obligation Consultation

At Cobb Law Firm, LLC, we know the overwhelming nature of financial difficulties and the profound impact they can have on you and your family. Drawing from our perspective as a father-daughter legal team, we approach each case with compassion and empathy. We recognize that, behind every bankruptcy case, there are real people facing real challenges. It's our mission to guide you through the bankruptcy process, offering support and informed legal counsel to help you regain financial stability and peace of mind. 

Our bankruptcy services include: 

• Chapter 7
• Chapter 13
• Creditor harassment 
• Lawsuit and wage garnishment 
• Foreclosure defense

Turn to our Gadsden bankruptcy attorneys for knowledgeable legal representation when you need it most. 

Contact us online or dial (256) 733-6102 to schedule a confidential consultation.

Debt Consolidation vs. Debt Relief Bankruptcy

Debt consolidation bankruptcy, or Chapter 13 bankruptcy, enables individuals to reorganize their debts into a more manageable payment plan, typically spanning three to five years. This bankruptcy type is particularly advantageous for those looking to keep their assets, such as a home or car, which might otherwise be at risk of liquidation or repossession. 

Potential advantages of Chapter 13 bankruptcy include the following: 

• Allows individuals to keep their property
• Provides a structured repayment plan
• May help improve credit scores over time upon consistent repayment

Debt relief bankruptcy, or Chapter 7 bankruptcy, involves selling non-exempt assets to pay off creditors. For many, Chapter 7 offers a fresh financial start by wiping out their unsecured debts. It benefits those with limited income who cannot afford a repayment plan. On the downside, it can lead to the loss of valuable assets and may have a more detrimental impact on one's credit score than Chapter 13.

Potential advantages of Chapter 7 bankruptcy include the following: 

• Discharges most unsecured debts quickly
• No repayment plan is required
• Offers a fresh financial start in a shorter timeframe

What Is the Bankruptcy Means Test? 

The bankruptcy means test is used to determine whether someone qualifies for Chapter 7 bankruptcy. This test is a calculation based on their income, expenses, and family size. It compares your monthly income to the median income of a similar household in your state. If your income falls below the median, you may be eligible for Chapter 7; otherwise, you might have to opt for Chapter 13. 

People considering bankruptcy are strongly encouraged to consult with an experienced attorney, like ours at Cobb Law Firm, LLC, to help them determine if filing for bankruptcy is a viable option and, if so, which type of bankruptcy they are eligible for. 

Take Control of Your Financial Future 

A bankruptcy filing should not be taken lightly as it has long-term consequences. Instead, filing for bankruptcy should be considered when debt becomes unmanageable and you have exhausted all other avenues to repair your financial situation. 

Additionally, while having an attorney to file for bankruptcy is not mandatory, having experienced legal representation is highly recommended. 

A legal advocate, like our Gadsden bankruptcy lawyers, can provide invaluable guidance, helping you throughout the process. They can also provide guidance aimed at helping you protect your rights and assets. Furthermore, if creditors are harassing you, you are worried about home foreclosure, or you are facing a creditor lawsuit, now is the time to schedule a consultation with Cobb Law Firm, LLC. 

Get the legal guidance you seek by calling (256) 733-6102 or filling out our online contact form. We are ready to use our decades of experience to help you.