Many Americans are driven to bankruptcy due to the costs related to a serious injury or long-term disability. While there some insurance plans and benefit systems that provide some degree of compensation while a person cannot complete his or her job, these payments often fall significantly below realistic costs of living. If an injury or disability continues for a long enough period of time, any savings that person had may begin to dry up, forcing them to turn to options such as credit cards.
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In the state of Alabama, there are exemptions in place to protect disability income for those who receive regular assistance from a disability insurer or similar source. Especially in instances when the disability has gone on for a substantial length of time, these payments may practically be all the income a person is living off of. Considering the cost of food, energy, and other essentials, debt often becomes a sort of supplemental income for many who are living with a disability.
The following exemptions are in place to assist these individuals in bankruptcy:
As the assumption of disability pay follows that the recipient will only receive benefits while they are suffering a disability, so too does this exemption from bankruptcy liability only extend to the length of the disability. Once a person stops receiving these payments or is considered to be recovered from their disability, this particular exemption will cease to be in effect.
If you are considering bankruptcy as a means to get a fresh start on your finances, contact the Birmingham bankruptcy lawyers of [firm-name], today at [phone-number] for more information regarding your options.