Call Us Now For A Personalized Case Evaluation(205) 506-3354
Call Us Now For A Personalized Case Evaluation(205) 506-3354
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.
Call Us Now For A Personalized Case Evaluation(205) 506-3354
A Chapter 7 bankruptcy is available to individuals, partnerships, or a corporation. The debtor’s nonexempt assets are sold off by a trustee to pay the debtor’s creditors. Nonexempt assets items such as second (or third, etc.) homes, vehicles worth more than $7,750, a stamp or coin collection, jewelry, and investments not held in retirement accounts.
The exempt assets are items needed for your daily living: a home with up to $15,000 in equity if single and $30,000 if married (if a home is owned jointly), a car that does not have more resale value than $7,750, retirement accounts, and items to sustain your living like clothing and furniture. You are also entitled to 75% of your wages. If your home has more equity than the Chapter 7 bankruptcy limit, consider filing a Chapter 11 bankruptcy.
While most states have a vehicle exemption, Alabama does not. But you can choose to use your wildcard exemption for property worth up to $7,750.
A No Asset Case: If you do not have any assets, a chapter 7 bankruptcy might be the best option. If you don’t have any assets, which means you don’t have anything of value for a trustee to sell off. However, it also means that your creditors will not be repaid.
For information on filing a Chapter 7, please call the Clark Law Firm in Jefferson County at (205) 506-3354 for a personalized case evaluation for a local chapter 7 bankruptcy attorney.
Chapter 11 bankruptcy is the option for businesses, sole proprietorships, and partnerships although individuals may file for one. This bankruptcy option allows the business to keep operating while paying its creditors over time. It also requires a quarterly fee for the U.S. Bankruptcy Court from the date of filing to dismissal.
For information more information on filing a chapter 11 bankruptcy, please call the Clark Law Firm in Jefferson County at (205) 506-3354 for a personalized case evaluation by a chapter 11 business bankruptcy lawyer.
Call Us Now For A Personalized Case Evaluation(205) 506-3354
Think of Chapter 13 bankruptcy as a repayment plan. It allows individuals to restructure their debt, pay off their creditors over three to five years, and—most importantly—keep their assets.
While Chapter 13 bankruptcy is for individuals, sole proprietor business owners can file a Chapter 13 bankruptcy if they do so under their name. That’s because a sole proprietor retains the responsibility for their business and consumer debts.
Partnerships avoid Chapter 13 bankruptcies because many partnership agreements include a clause in the agreement to dissolve the company if it goes bankrupt. There is also the complication of creditors going after the assets of the other, non-filing partner.
For information on filing a Chapter 13 bankruptcy, please call the Clark Law Firm in Jefferson County at (205) 506-3354 for a personalized case evaluation by a chapter 13 bankruptcy lawyer.
While the internet provides a lot of information on how to file for one of the above bankruptcies on your own, it is in your best interest to hire an experienced professional, a bankruptcy court attorney, who can provide guidance and expertise in giving you a fresh start.
Please call the Clark Law Firm in Jefferson County at (205) 506-3354 for a personalized case evaluation by an experienced bankruptcy lawyer.
Call Us Now For A Personalized Case Evaluation(205) 506-3354
Give us a call and let us put our years of experience to work for you!
Disclaimer: Because the firm assists consumers with filing for bankruptcy protection, the firm is considered a “debt relief agency” under federal law. The information on this website is for information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship. These recoveries and testimonials are not an indication of future results. Every case is different, and each case must be evaluated on its own facts and circumstances as they apply to the law. The valuation of a case depends on the facts, the damages, the jurisdiction, the venue, the witnesses, the parties, and the testimony, among other factors. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.