To file for bankruptcy in Alabama, you need to have been a resident in the state for two years.
While filing for bankruptcy in Alabama is similar to other states, Alabama does not allow the debtor to choose between federal and state bankruptcy exemptions—which are lists of items that the debtor may keep and the trustee may not liquidate to pay off debt. However, the state’s exemptions do include your home, your clothes, your retirement funds, and a wild card exemption to protect your personal property such as your daily ride, your great-grandmother’s quilt, or maybe your sneaker collection.
The three types of bankruptcies are Chapter 7, Chapter 11, and Chapter 13. They offer options from liquidating your nonexempt assets to three- to five-year payment plans. Below are three of the more common bankruptcy options available.
For more information on filing the less common Chapter 9, Chapter 12, or Chapter 15 bankruptcies, please call the Clark Law Firm in Jefferson County at (205) 506-3354 for a personalized case evaluation by an expert bankruptcy attorney.