Bankruptcy in Juneau, AK

Are you worried that bankruptcy could ruin your financial future?

Naturally, you may feel crushed by the unpaid bills piling up around you. However, many individuals and businesses have used this legal remedy to rebuild their fortunes. For instance, Ravn Alaska found significant success only one year after filing for bankruptcy.

Do you want to know how to take advantage of the same opportunities? Then read this guide carefully and decide if a consultation with a bankruptcy attorney in Juneau is in your future.

Types of Bankruptcy in Juneau, Alaska

Bankruptcy is a legal process that helps individuals and businesses get a fresh financial start. It eliminates a portion of or all of their debts or financial liabilities. To receive approval, individuals from Juneau, AK must prove they have a genuine hardship.

Keep in mind that not all debts qualify. Some liabilities, such as child support arrears, delinquent taxes, alimony, and student loans, are not eligible.

Consumers who fall behind on debt can file either Chapter 7, 11, or 13. You need to assess your goals, assets, and income to determine which works best.

Regardless of which filing you choose, the U.S. Bankruptcy Court in Juneau is likely to adjudicate.

Chapter 7 Bankruptcy

Chapter 7 is often the right solution because it offers the opportunity to start over financially.

However, before filing for Chapter 7 bankruptcy, you should thoroughly assess your income and ability to repay what you owe. You should also speak with a bankruptcy attorney in Juneau who can help you to decide if a liquidation plan is right for you.

Typically, individuals approved for Chapter 7 lack stable income or have experienced a change in circumstances. This type of bankruptcy erases debts, but the tradeoff is you have to give up some possessions. For instance, you could lose your home, car, or other vital assets.

An automatic stay goes into effect once you file your petition. This legal order stops collection activity against you. Foreclosure and garnishments will also cease temporarily. Nonetheless, some attempts to collect from you may continue. For example, you remain responsible for child support payments or criminal restitution.

Consumers in Juneau also have to pass a means test to qualify for Chapter 7 bankruptcy. Thankfully, you do not have to study for an exam. This process involves looking at your gross income and determining if it is below the rest of the state. As of July 2021, the U.S. Census Bureau had the median household income in Alaska as $80,287.

Chapter 11 Bankruptcy

Chapter 11 bankruptcy is more complex than other types of bankruptcy. Generally, it is more likely that businesses will take advantage of the opportunities it provides.

Chapter 11 allows petitioners to restructure their debts with a reorganization plan. This flexibility gives them a determined length of time to manage their debts.

The primary advantage of Chapter 11 bankruptcy is that it does not require selling off or liquidating assets. Debtors also have the chance to negotiate with creditors as part of their reorganization plan.

The U.S. Bankruptcy Court of the District of Alaska has the forms consumers in Juneau must complete. The petition that begins the process can either be voluntary or involuntary. Other disclosure and statements that will be necessary include:

• Income and expenditures

• Assets and liabilities

• A financial affairs statement

• Contracts and unexpired leases

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is a debt restructuring or wage earners plan. After you file in Juneau, AK, the courts will assign a trustee to examine your liabilities, assets, and ability to pay bills.

Unlike other types of bankruptcy, Chapter 13 involves you restructuring your debt with a three to a five-year repayment plan. The flexibility of this repayment plan will depend on what property you want to keep and your income. It may also allow you to have some or most of your debts discharged.

U.S. Courts can only process Chapter 13 bankruptcies involving less than $2.75 million in debts. Furthermore, the person or business from Juneau cannot have applied for bankruptcy in the last 180 days. In addition to the regular disclosures, the federal government requires lists for the following:

• Properties

• Sources of income

• Monthly living expenses

• Creditors, the amounts owed to them, and the nature of their claims

The Bankruptcy Process in Juneau, Alaska

There is never an ideal time to declare bankruptcy. However, if you cannot pay what you owe within five years, filing for bankruptcy can help you to lessen the negative impact.

To begin the filing process, gather your financial records, including monthly expenses, debts, assets, and annual income. This information is crucial to give the courts an accurate picture of your circumstances. Failure to provide all necessary information can result in a denial by a judge in Juneau.

The U.S. Bankruptcy Court of the District of Alaska provides a list of potential exemptions. This document gives options from state and federal law. Juneau residents have to decide which offers the most value after bankruptcy proceedings. For instance, you can keep $25,150 for a federal homestead exemption while the state delivers $72,900. But, if you do not own your house, you could find more advantages elsewhere.

At least six months before you file for bankruptcy, eliminate unnecessary spending. Do not run up the balances on your credit accounts. You’ll also need to complete an approved credit counseling course, usually online or over the phone.

Credit counseling is necessary to help you learn financial literacy and help you learn better financial habits. Once you complete the course, you’ll receive a certificate of completion to include in your filing. If you don’t have the certificate from the credit counseling course, the courts will reject your bankruptcy petition.

Work With an Experienced Juneau, Alaska Lawyer

Hiring a local bankruptcy lawyer in Alaska during this process can help reduce the risks of self-representation. An experienced bankruptcy lawyer understands state and federal bankruptcy laws. They can help you discover which legislation applies to your case and which debts can discharge. An experienced Alaska attorney can also offer you guidance to improve the outcome of your case.

Keep in mind there are debt management alternatives and financial resources that may benefit you more than bankruptcy. Though bankruptcy is an attractive solution, it is best as a last resort.

Do you need immediate help? Then one of our experienced lawyers in Juneau can guide you through the entire bankruptcy process. We can even help you connect with an attorney across Alaska state lines.

Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!