Chapter 7

Chapter 7 Bankruptcy in Alabama

Alabama Bankruptcy Lawyers | Crumbley-Blackwell-Price Attorneys

If you are considering filing for bankruptcy to remove your debts, then you may be wondering which type of bankruptcy you should file. There are two common bankruptcy chapters for consumers: Chapter 7 and Chapter 13. Chapter 7 bankruptcy is known as liquidation bankruptcy because debts are cancelled after all non-exempt property is liquidated.

Who is eligible for Chapter 7?

To file Chapter 7 bankruptcy in the State of Alabama, the government requires that you meet certain specifications:

  • Your income must be below a certain level
    You must take the means test, which will calculate your income, expenses, and debt burden over the last six months.

  • You will need to complete a credit counseling course.
  • Please note that you will not be eligible for Chapter 7 if you already received a bankruptcy discharge within the last six to eight years.

    How to file for Chapter 7 Bankruptcy

    After determining if you are eligible for Chapter 7, you can then file a bankruptcy petition with your local bankruptcy court. Upon filing, an automatic stay on your creditors will go into effect, which will prevent them from collecting any further debts through wage garnishment, foreclosure, repossession, or any other means. The court takes control over your property, so you may not sell or give away any property after filing, with a few exceptions.

    The court will appoint a trustee to oversee your case and hold a creditors meeting. Your non-exempt property will then be sold for cash to pay your creditors, and your debts will be discharged. Some debts are not able to be discharged, such as child support, student loans, or tax debt.

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    • 2304 Memorial Pkwy SW, Huntsville, AL 35801
    • 217 Randolph Ave SE, Huntsville, AL 35801
    • 112 Market Street W., Athens, AL 35611
    • 427 2nd Avenue SW, Suite 102, Cullman, AL 35055
    • 3172 Cahaba Heights Rd, Birmingham, AL 35243

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      Crumbley-Blackwell-Price Attorneys

      Athens office

      Address: 112 Market Street W., Athens, AL 35611
      Phone (English): (256) 539-4464
      Google map: https://goo.gl/maps/zbu296X2SNZUi6Tr6

      Huntsville

      Address: 217 Randolph Ave SE, Huntsville, AL 35801
      Phone (English): (256) 539-4464
      Google map: https://goo.gl/maps/Li7ndJFe9u7amwQx7

      Huntsville

      Address: 2304 Memorial Pkwy SW, Huntsville, AL 35801
      Phone (English): (256) 539-4464
      Google map: https://goo.gl/maps/JrumnQm5GT4rj4j97

      Cullman

      Address: 427 2nd Avenue SW, Suite 102, Cullman, AL 35055
      Phone (English): (256) 539-4464
      Google map: https://goo.gl/maps/NLDEo3KUFMoLawMA8