Bankruptcy Lawyers for Chapter 7

Chapter 7 Bankruptcy in Alabama

Alabama Bankruptcy Lawyers | Crumbley-Blackwell & Associates, P.C.

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.

Speak to a Bankruptcy Attorney Today

Are you or a loved one considering chapter 7 bankruptcy in Huntsville, Decatur, Madison, or a surrounding area in North Alabama? Schedule a consultation with a lawyer to discuss your situation today - by calling (256) 539-4464 or completing a case evaluation form.

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