Any person, partnership, corporation, business trust, charitable or social organization can file for bankruptcy. You do not have to be a United States citizen to file for bankruptcy in Alabama.
Certainly repeat filings are discouraged by the bankruptcy court and will be more strictly scrutinized under the new bankruptcy law. Presently, Chapter 7 bankruptcies may be filed every 6 years. After October 17, 2005, Chapter 7 bankruptcies may only be filed every eight years. There is no time limitation in Chapter 13 filings at the present time.
You have to be married to file a joint petition. However if you are married you may file jointly or individually.
A Chapter 7 bankruptcy, sometimes called Liquidation or “Straight Bankruptcy,” allows most debt to be eliminated in approximately a four-to-five-month period. Some debts cannot be discharged in a Chapter 7 bankruptcy, however. Some examples of debts that cannot be discharged under a Chapter 7 bankruptcy are alimony, child support, student loans and tax debts. A Chapter 13 bankruptcy involves a repayment of some or all of your debt through the office of a bankruptcy trustee over a period up to five years. All types of debts may be paid in a Chapter 13 bankruptcy.
Schedules of your income, expenses and all of your property are required as a part of your bankruptcy petition. If you have excess income or property over your allowed exemptions you are often required to file a Chapter 13 rather than a Chapter 7.
Not necessarily. The State of Alabama allows you to exempt presently up to $5,000 in real property and $3,000 in personal property in addition to other basic items like clothing and family photographs. However, if you have property over and above your exemptions, the bankruptcy court can take the property, sell it, pay off your creditors, give you your exemption back and keep the rest for other creditors. Usually paying the value of said property over and above the exemptions into a Chapter 13 plan will prevent you from losing the property.
A secured debt is a debt backed up by property. A home mortgage and debt for an automobile would be a secured debt. An unsecured debt would be any debt not backed by property like credit card debt, a personal loan or a medical bill.
No. Any debt “in the nature of support” arising from a divorce or child support case would not be dischargeable in a Chapter 7.
No. Your divorce decree does not bind your creditors. If your ex-spouse files a bankruptcy you should seek legal advice.
Recent taxes are not dischargeable in a Chapter 7 bankruptcy. However some old tax debts as well as interest and penalties may be dischargeable. Taxes may be paid as a priority debt in a Chapter 13.
Absolutely. However, most debtors are able to rebuild their credit within a few years with on-time payments to the creditors that remain after the discharge.
The Bankruptcy Court has no jurisdiction over credit reporting agencies. Bankruptcy filings usually remain on credit reports from 7 to 10 years.
First, you must determine if you are even eligible to file. One of the first requirements you should look at to determine if you are eligible to file a Chapter 13 is the amount of debt you have. You must look at your unsecured debts (like credit cards and medical bills), and your secured debt. If you can stay between the lines, you are that much closer to getting protection from foreclosure, credit card debt help, and ultimately using the Chapter 13 rules to get relief from your creditors.
If you are in foreclosure, you have a very limited amount of time in which to take action. If you have decided you want to keep your home and can afford to keep your home, you can contact a bankruptcy attorney who may be able to stop the sale of your home by filing a bankruptcy. If you have decided to give up your home, you may be able to simply walk away. If your home is sold at auction for less than you owe, you will have to pay the remaining balance back to the lender. This is called a deficiency balance and it is usually 100% collectable by the bank. That means that you may still have to suffer through harassing creditor calls, wage garnishments, or threats to your other property. The deficiency balance will follow you wherever you go. A deficiency balance can be addressed in a Chapter 7.
Yes. And, for many, life after and during Chapter 13 bankruptcy is better than their lives before. Chapter 13 will put a stop to wage garnishments. You and your family aren’t being awakened at all hours of the night with harassing creditor phone calls. All of your bills are lumped into one payment that you can finally manage to pay.
As you know, you must report any changes in your income during the life of your Chapter 13. Now, this means you report not just an increase in income, but a drop in your income as well. Your plan payment is based on many factors, one of which is your ability to pay. If your ability to pay changes, you plan payment may need to be modified. You could, however, face some serious consequences. You could be kept from getting your discharge. That means all the hard work you and your attorney put into getting your family protection from foreclosure, credit card debt help, and relief from your creditors could’ve been for nothing.
Yes, once you’ve established a good payment history and financial responsibiliy. Often you can reestablish good credit in two years. Filing bankruptcy doesn’t mean you’ll never be able to own anything again.
You can convert a case one time to any other chapter you’re eligible for. If you change from Chapter 13 to a Chapter 7, some of your possessions may be part of the Chapter 7 estate (and can be taken and sold to pay your debts), even though they were safe from creditors under Chapter 13.
Bankruptcy records are public, and are not protected by any privacy regulations. No sensitive personal information will be released to 3rd parties but they will learn the particulars regarding your bankruptcy case.
Chapter 7 bankruptcies take 2-6 months. Chapter 13, which are repayment plans, take from 3-5 years.
Huntsville Office Location:
303 Williams Avenue SW
Huntsville, AL 35801
Decatur Office Location:
401 Lee Street, Suite 607A
Decatur, AL 35601