How to file bankruptcy in alabama?

Disadvantages to a Alabama Chapter 7 filing: You lose your non-exempt property which is sold by the trustee. If you want to keep a secured asset, such as a car or home, and it is not completely covered by your Alabama bankruptcy exemptions then Chapter 7 is not an option. read more

(see Alabama Bankruptcy Court Directory) Most Chapter 7 filings involve no non-exempt assets, however, if you filed for Chapter 7 and do have non-exempt assets, you will have to turn over non-exempt property (or its fair market value in cash) to the trustee after the meeting.The trustee will sell this property and distribute the proceeds to your creditors. read more

Alabama Bankruptcy Court Locations. Alabama has three bankruptcy court districts. You’ll want to start by using the Court Locator to find the district you should file your case in. Choose “Bankruptcy” for court type, and enter your city or zip code. read more

When you file for bankruptcy, you must compare your income to the median income for a household of your size in Alabama. If your income is less than the median, you will be eligible to file for Chapter 7 and, if you choose to file for Chapter 13, you can use a three-year repayment plan (rather than five years). read more