Bankruptcy can permit you to:

There are several different types of Bankruptcy that provide differing forms of relief. The two “Chapters” most typically used by individuals are: Chapter 7 and Chapter 13.

Chapter 7 is a liquidation proceeding, sometimes referred to as “straight bankruptcy”. In a Chapter 7 case, a Debtor receives a discharge of most or all of his debts, in return for the liquidation (sale) of his “non-exempt” property, by a Trustee who is appointed by the Court to administer the case. The Trustee then distributes any proceeds from the sale of property to the Debtor’s Creditors. If you do not own anything of significant value, you will not lose any of your property.

No. Bankruptcy Law provides that a Debtor is allowed to keep certain property that may be claimed as exempt.

No. Chapter 7 can permit you to keep your house and car. As long as you are current on your car and mortgage payments, and there is no significant equity in the property, you should be able to reaffirm these obligations, and keep the property. Further, if you do have some equity in your house or car, if the amount of equity is below the Alabama Exemption limits, you will be able to keep the property. If your equity exceeds these limits, you may need to file a Chapter 13, which would permit you keep the property.

In a Chapter 7 Case filed in Alabama, under the Alabama State Exemptions you may be able to keep any equity the following property:

Student loans cannot be discharged in Chapter 7, and will survive after the conclusion of the case. Income taxes for recent tax years typically cannot be discharged, but depending upon whether timely returns have been filed, some older obligations to the IRS can be discharged.

Chapter 13 is debt re-adjustment proceeding for individuals whereby a Debtor is able to keep most of his property (i.e. house, cars, furniture or other necessary personal property) under a Court approved repayment plan, while discharging most, if not all, of his other debts. In a Chapter 13 case, a Debtor proposes a plan to repay his creditors, and consolidates most of his debts into a single monthly payment that the Debtor can more easily afford. Chapter 13 provides a broader discharge than a Chapter 7 case, and certain debts which are non-dischargable in a Chapter 7 case may be discharged in a Chapter 13.

An experienced attorney at Over the Mountain Law Center will recommend which bankruptcy chapter is best for you, based upon all of the facts and circumstances of your case. Call us today at (205) 870-8480 for a free consultation.

No two cases are exactly the same, but bankruptcy is probably more affordable than you think. We base our legal fees on the facts and circumstances of each specific case. After the initial free consultation, we will quote you a specific fee which can be paid in installments. Note that all attorneys’ fees and court filing fees for a Chapter 7 case must be paid in full in order to file your case. The filing fees for a Chapter 7 case are $335.00.

A Chapter 13 case can be filed upon payment of the court filing fee and a portion of the attorney’s fees. The balance of the Chapter 13 legal fees can be paid from the monthly plan payment that you make for your Chapter 13 payment plan. The filing fees for a Chapter 13 are $310.00.

There are two courses that you (and your spouse, if filing jointly) are required to take in connection with your bankruptcy case. The first course, Pre-Bankruptcy Credit Counseling should be taken immediately. We cannot file your case until you have completed this course and received a credit counseling certificate. You must provide us with a copy of your credit counseling certificate.

The second course is called a Personal Financial Management Course. It must be completed within sixty (60) days after the first date set for your Section 341 Meeting with the Trustee. After completion of your Personal Financial Management Course, you will receive a certificate of completion of the course, which also must be provided to our office.

Our office has referred clients to Biblical Financial Concepts d/b/a Stand Sure Information Services to fulfill both of these requirements. After scheduling your free consultation with our office, Please call them at (205) 421-1590 or visit their website atwww.biblicalfinancialconcepts.org. Please note that there is a fee for both courses.

The first step is to contact our office at (205) 870-8480 and schedule an appointment. If possible, please bring the following documents to your initial appointment: