Small Claims Court Alabama: You can represent yourself in Small Claims Court for claims up to $6,000. Rules of procedure are simple and informal in Small Claims Court Alabama, and it is designed for people that don’t have an attorney. If you are unable to pay the filing fee, you may request a waiver by filing an Affidavit of Substantial Hardship.
Alabama Chapter 7 Bankruptcy or Alabama Chapter 13 Bankruptcy? There are several situations where a Chapter 13 is preferable to a Chapter 7. A Chapter 13 bankruptcy is the only choice if you are behind on your mortgage or business payments and you want to keep your property, either in Alabama or another state, at the end of the bankruptcy process.
How to File Bankruptcy in Alabama for Free 1 Collect Your Alabama Bankruptcy Documents 2 Take Credit Counseling 3 Complete the Bankruptcy Forms 4 Get Your Filing Fee 5 Print Your Bankruptcy Forms 6 Go to Court to File Your Forms 7 Mail Documents to Your Trustee 8 Take Bankruptcy Course 2 9 Attend Your 341 Meeting 10 Dealing with Your Car
If you can't afford a Chapter 7 bankruptcy lawyer, consider whether one of the following might work for you: stop making payments on debts that will get wiped out in bankruptcy and pay your attorney instead
Bankruptcy lawyers in Alabama typically charge a flat fee of between $815 and $1,500. The cost will depend on how complicated your case is and how much experience the bankruptcy attorney has. While you may not want to hire an attorney because it’s expensive, it may be well worth it if your financial situation is complicated.
$335The court charges a filing fee. The Chapter 7 bankruptcy fee is $335. The Chapter 13 bankruptcy filing fee is $310. You also have to pay a private lawyer to handle your case.
$39,768 per yearEach state has a different dollar amount as a threshold for qualifying under the means test. In the State of Alabama: If you are single, live alone, and earn less than $39,768 per year – you automatically qualify under the means test to file for Chapter 7 bankruptcy protection.
In order to determine whether your income is below Alabama's median income level, you will need to calculate your family's gross income within the last six months. If you fall below the average, there is a presumption that you pass the bankruptcy Means Test in Alabamaand are eligible to file a Chapter 7 bankruptcy.
Chapter 7 bankruptcy is a legal debt relief tool. If you've fallen on hard times and are struggling to keep up with your debt, filing Chapter 7 can give you a fresh start. For most, this means the bankruptcy discharge wipes out all of their debt.
Personal Property Exemptions in Alabama The personal property exemption will protect property as varied as household goods and furnishings, automobiles, computers, jewelry, lawn mowers and lawn tools, personal tools, bank accounts or proceeds from a lawsuit for personal injury.
Your will likely still be able to file a Chapter 7 bankruptcy if you are unable to pay at least $6,000 over the next five years ($100 per month) to your unsecured creditors after your expenses. However, if you can pay at least $10,000 over five years ($166.67 per month or more) your Chapter 7 will likely be denied.
Bankruptcy Exemptions: What Property Can you Keep In Chapter 7 Bankruptcy?Houses, Cars, and Property Encumbered By a Secured Loan. ... Household Goods and Clothing. ... Retirement Accounts. ... Money, Jewelry, and Other Property.
Alabama Resident Debt Relief. InCharge provides free, nonprofit credit counseling and debt management programs to Alabama residents. If you live in Alabama and need help paying off your credit card debt, InCharge can help you.
Debt relief programs are designed to help consumers struggling with more debt than they can afford. In its simplest form, a debt relief program means that your creditors agree to accept less than what you owe as payment in full.
Other Non-Dischargeable Debts in Bankruptcy 401k loans. Other government debt such as fines and penalties. Restitution for criminal acts. Debt arising from fraud or false pretenses.
Generally speaking, in a Chapter 7 proceeding, the following types of debts are not discharged:Debts that were not listed at the start of the case (or debts for unlisted creditors). ... Most student loans (unless repayment would cause the debtor and their dependents undue hardship)Recent federal, state, and local taxes.More items...•
Unsecured debts wiped out by Chapter 7 bankruptcy include credit card debt, medical bills, and gasoline card debt. However, you can't wipe out all unsecured debt.
When you file for Chapter 7 bankruptcy, the court—and your creditors—assume that you’ll stop making payments on bills that will get discharged (wip...
After meeting with a bankruptcy lawyer, you can expect to feel a great sense of relief (it’s wonderful knowing that a solution is in sight) and wan...
The automatic stay order that stops creditors from collecting doesn’t go into effect until you file the bankruptcy case. However, once you hire an...
You aren’t required to have an attorney when filing for bankruptcy relief. Whether you should, however, will depend on how complicated your case is...
Resources are available to debtors who can’t afford a bankruptcy attorney, but they vary depending on where you live. Some bankruptcy courts have f...
Filing for Chapter 13 bankruptcy allows debtors to pay all or a portion of their attorneys’ fees through their repayment plan. If you can’t afford...
If you can't afford to pay a bankruptcy attorney right away, you might consider: asking friends and family. getting help from a legal aid society or other free legal clinics in your area. finding an attorney who will take your case pro bono (free of charge), or. filing your case without an attorney.
Your attorney won't file a Chapter 7 case until you've paid in full. Why? Because the bankruptcy would wipe out the fees still owed to your attorney. A debtor who doesn't have the fee will often start by asking friends and family for help.
It isn't as challenging to finance a Chapter 13 case. Many attorneys will take a downpayment upfront. The remaining amount gets paid in your repayment plan, thereby allowing you to pay a small part of your legal fees each month. Find out more about how bankruptcy lawyers get paid.
Even so, it's still possible to represent yourself in Chapter 7.
And many bankruptcy attorneys cut fees drastically for clients who qualify for a bankruptcy fee waiver.
If you can't afford a Chapter 7 bankruptcy lawyer, consider whether one of the following might work for you: stop making payments on debts that will get wiped out in bankruptcy and pay your attorney instead. borrow the fees from a friend, family member, or even your employer. retain a bankruptcy lawyer who will handle creditor calls ...
When you file for Chapter 7 bankruptcy, the court—and your creditors—assume that you'll stop making payments on bills that will get discharged (wiped out) in your bankruptcy case and use the funds to pay legal fees instead. For instance, credit card payments, medical bills, past-due utility payments, and personal loans (such as payday loans) usually qualify for a discharge.
Free Clinics, Legal Aid, and Pro Bono Attorneys. Resources are available to debtors who can't afford a bankruptcy attorney, but they vary depending on where you live. Some bankruptcy courts have free clinics to help debtors file for bankruptcy relief on their own.
Otherwise, you might be able to pay the fee in up to four installments. To apply for either, you'll complete and submit the official request forms along with your initial bankruptcy petition. The court will notify you if the judge approves the waiver or installment arrangement.
Some lawyers will let you pay a retainer as low as $100 and then pay the remaining attorneys' fees in installments. However, even though many lawyers offer payment plans, they won't file your case until all fees are paid in full—and for a good reason.
All Chapter 7 cases require you to fill out extensive bankruptcy forms, research exemption laws (to protect property) and follow all local court rules and procedures. If you aren't comfortable doing the work—and assuming the risk—consult with a bankruptcy lawyer.
But this chapter doesn't work for everyone.
Chapter 7 Bankruptcy in Alabama: What You Need to Know. Aside from football, Alabama might best be known for its rich agricultural history, the birth of Booker T. Washington’s “Atlan ta compromise” in the civil rights movement, and being a big employer for colleges and the military. The Heart of Dixie grew its economy after World War II ...
In Alabama, you’ll file for bankruptcy in one of three courts depending on where you live, which are then separated by division. All bankruptcy cases are handled by a United States Bankruptcy Court.
These include exemptions for retirement benefits for federal employees, federal death and disability benefits, and certain other federal benefits.
The homestead is limited, though, to 160 acres. Finally, in order to use the homestead exemption in Alabama, you must file a declaration with your county before you file for bankruptcy. More exemptions, for reference, can be found in The Code of Alabama 1975, but we’ll go over a few more of the bigger ones in detail below.
When you file for Chapter 7 bankruptcy, the idea is that all your possessions will be sold and the money will be used to pay some part of your debts to your creditors. However, there are things you are able to keep even though you file for bankruptcy. These are called exemptions.
Alabama Bankruptcy Exemptions: Can I keep my house? Alabama has decided that its citizens, when filing for bankruptcy, can only use the list provided for in Alabama’s laws along with a limited number of federal exemptions that are not in the “federal list.”.
The amount of non-exempt wages and salary would normally be so small that the bankruptcy Trustee would not bother taking it. Personal clothing is exempt, but there is no specific exemption for furniture. However, the “wild card” exemption can be used.
In addition to the credit counseling course you took before your case was filed, you have to take a financial management course after filing Chapter 7 in Alabama. This second course is a requirement under the bankruptcy code and if you don't take it, you will not get your discharge. Once you are done, you get a certificate of completion. This certificate has to be filed with the bankruptcy court. If you don't take the course (or don't file the certificate, notifying the court that you took it), your Chapter 7 bankruptcy in Alabama can be closed without a discharge being entered. As before, it's important to take this course through one of the providers approved to offer it in your district. There is a small cost associated with this second course too, but just remember to keep things in perspective. Paying even $50 (though that's probably on the higher end of the price range) in exchange for getting rid of almost all of your debts is definitely worth it.
When you are looking into filing a Chapter 7 bankruptcy in Alabama, your first instinct may be to avoid hiring a lawyer, after all, the cost of a bankruptcy lawyer averages a little more than $1,000 per case. Keep in mind, however, how much debt you are able to walk away from as a result of your Alabama bankruptcy.
Basically, the trustee's job is to make sure that your creditors are getting what they are due under Alabama bankruptcy laws. The benefit of this is that you don't have to deal with each and every creditor representative separately. Part of the trustee's review of your financial situation involves a review of your federal income tax returns. That's why everyone filing Chapter 7 in Alabama has to send a copy of their most recent return to their trustee more than 7 days before their creditors' meeting. In addition to the tax return, your trustee may ask you to send them some other documents, such bank statements or paycheck stubs. It's important to respond to the trustee's requests in a timely manner, so they can properly prepare for your creditors' meeting. Even though the trustee does not represent you or your interests, generally speaking, making the trustee's life easier by following their instructions will make your life easier. The worst thing you can do is make it seem as though you are hiding something, because that will really peak the trustee's interest in the details of your Chapter 7 bankruptcy in Alabama.
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When you file a Chapter 7 bankruptcy in Alabama, everything you own is an asset, even your car. The question of what happens to your car depends on how much it's worth and whether you are still paying on a car loan. If your vehicle is paid off, then you get to keep it as long as your car is worth less than the allowed exemption. If you are still making payments on the car, then you can keep it as long as you keep the debt that is on it. You can't keep the car without paying for it. That is not how it works outside of bankruptcy and, therefore, it's not something that can be done as part of a bankruptcy. However, if your car's value is much less than what you still owe on the loan, then you can buy the car for its current value and get out from under the loan that way. This is called a redemption. If the loan terms are manageable, and you know you can make the payment every month without a problem, you can also enter into a reaffirmation agreement to keep things basically the way they were before filing Chapter 7 in Alabama. Finally, if you don't want your car any more, you can surrender it to the bank without having to worry about the remaining loan balance.
As you know, the court filing fee for a Chapter 7 bankruptcy in Alabama is $338. Normally, this fee is due in full at the time your case is filed with the court. If you qualify for a fee waiver, you should complete this fee waiver application to have the filing fee waived now, and bring it with you when you go to the courthouse to file your case. Fee waivers are only granted if your income is less than a certain amount and the court determines that you are unable to pay the fee in installments. If you know ahead of time that you don't qualify for a full waiver, it's best to be proactive and instead of waiting for the judge to deny your application, ask the court to allow you to make payments on the fee after you are done filing Chapter 7 in Alabama. Be careful if you go that route, though, as missing just one payment will likely get your Alabama bankruptcy case thrown out.
That's why everyone filing Chapter 7 in Alabama has to send a copy of their most recent return to their trustee more than 7 days before their creditors' meeting.
Chapter 7 is known as "straight" bankruptcy or "liquidation.". It requires a debtor to give up property which exceeds certain limits called "exemptions", so the property can be sold to pay creditors. Chapter 11, known as "reorganization", is used by businesses and a few individual debtors whose debts are very large.
What Does It Cost to File for Bankruptcy? It now costs $200 to file for bankruptcy under chapter 7 and $185 to file for bankruptcy under chapter 13, whether for one person or a married couple. The court may allow you to pay this filing fee in installments if you cannot pay all at once.
After you file the bankruptcy petition, the court mails a notice to all the creditors listed in your bankruptcy schedules. This usually takes a couple of weeks.
Chapter 11, known as "reorganization", is used by businesses and a few individual debtors whose debts are very large. Chapter 12 is reserved for family farmers. Chapter 13 is called "debt adjustment". It requires a debtor to file a plan to pay debts (or parts of debts) from current income.
However, if you receive an inheritance, a property settlement, or life insurance benefits within 180 days after your bankruptcy, that money or property may have to be paid to your creditors if the property or money is not exempt.
(see bankruptcy - Alabama exemptions) Stop foreclosure on your house or mobile home and allow you an opportunity to catch up on missed payments. (Bankruptcy does not, however, automatically eliminate mortgages and other liens on your property without payment.)
Bankruptcy cannot, however, cure every financial problem. Nor is it the right step for every individual. In bankruptcy, it is usually not possible to: Eliminate certain rights of "secured" creditors. A "secured" creditor has taken a mortgage or other lien on property as collateral for the loan.
A judge will review your case and accept or deny the request. If approved, the court puts an "automatic temporary stay" in place that stops creditors from trying to collect payments or taking action such as wage garnishment, repossession, or foreclosure, while the bankruptcy case is pending.
Chapter 7 bankruptcy focuses on liquidating your nonexempt assets, if you have any, to repay creditors before your remaining debt is discharged. The process can get rid of many types of unsecured debt such as credit card debt, medical bills, and utility bills.
Nonexempt Property Under Chapter 7. Most people who file for bankruptcy do not lose any assets in liquidation because so many types of property are considered exempt. However, some property cannot be protected from creditors during the bankruptcy process. This is known as nonexempt property.
Chapter 7 Compared to Chapter 13. People who do not pass the Chapter 7 means test have the option to file for Chapter 13 bankruptcy instead. Chapter 13 requires you to pay back debt over time using a repayment plan under which installment payments are made to creditors over three to five years.
Bankruptcy Exemptions: Property You Can Keep. Chapter 7 bankruptcy involves gathering certain property or assets, if you have them, and selling them to pay off as much debt as possible. This step, known as liquidation, must happen before the rest of your debt can be "discharged" or eliminated.
However, you must file the remaining paperwork within 15 days.
Chapter 7 is the most common of the bankruptcy options available to individuals. Another bankruptcy option available to individuals is Chapter 13, which focuses on debt repayment. (More on the differences between the two below.) Chapter 12 bankruptcy is a relatively new option available to “family farmers" and “family fisherman.".
The Chapter 7 bankruptcy rules are a combination of the United States bankruptcy laws and the local court rules. The United States bankruptcy laws can be separated into the Bankruptcy Code and the Bankruptcy Rules. Since these bankruptcy laws cover every bankruptcy case, there’s quite a few of them.
Once your Chapter 7 bankruptcy case is filed, the bankruptcy laws immediately provide you with protection from your creditors in the form of the automatic stay.
The Bankruptcy Rules are the same but a different chapter of the Bankruptcy Code applies. That’s actually why the different types of bankruptcy are called “chapters.” In a Chapter 13 proceeding, the filer proposes a repayment plan that pays back certain types of debt in full and others in part before the bankruptcy discharge is granted by the court. Since Chapter 13 cases go on for 3 - 5 years from the filing date, you have a few additional responsibilities, including: 1 Keeping the Chapter 13 bankruptcy trustee updated if your income changes and - if requested - providing them with your tax returns for each year that your case is pending 2 Filing any amendments necessary to update your income, expenses, or add additional assets you may receive during the bankruptcy process 3 Staying current with any domestic support obligations like child support or alimony
Since Chapter 13 cases go on for 3 - 5 years from the filing date, you have a few additional responsibilities, including: Keeping the Chapter 13 bankruptcy trustee updated if your income changes and - if requested - providing them with your tax returns for each year that your case is pending.
Sometimes that means letting the trustee know if you become eligible to receive an inheritance within 6 months from your filing date. It just depends on what’s going on in your case. You also have to make sure that you update both the bankruptcy court and the trustee if your contact information changes.
You have to take credit counseling. At some point in the 6 months (180 days, to be exact) before filing bankruptcy, everyone has to take a credit counseling course from an approved credit counseling agency. Without it, you’re not eligible to file any type of bankruptcy.
If you’re earning more than the median income, you may still pass the means test. You have to show that your disposable income (after deducting your income tax withholdings and considering your living expenses) is not enough to pay your unsecured creditors at least 25% in a Chapter 13 bankruptcy .