Alabama Bankruptcy Resources

Filing Bankruptcy in Alabama

Is Alabama on the Road to Recovery?

The news for Alabama is better than that for most of the nation—Alabama’s economy to resume growing in early 2010 according to Moody’s. However, bankruptcies filed in 2008 hit record levels with nearly 30,000 in Alabama alone, and over 98% of those filed by consumers. It is estimated that 1.4 million consumer bankruptcies will be filed in the U.S. in 2009, the surge triggered by the foreclosure crisis and economic downturn.

Seek Appropriate Legal Advice from an Alabama Law Firm Specializing in Bankruptcy

The Federal Bankruptcy Law involves processes, procedures and evaluations which can be complex and confusing. Seek the advice of an Alabama law firm with specific long-term experience in Alabama bankruptcy matters. Check references, if possible. A competent Alabama attorney will help you weigh your different options, make informed decisions, help you protect the security of your family and reduce your stress, while facing the realities of the situation.

Alternatives to Alabama Bankruptcy

You may be able to avoid bankruptcy if you’re able to take some actions on your own. Contact your creditors to try to work out payment arrangements that you can manage. Contact the non-profit Consumer Credit Counseling service to get help with a manageable repayment plan. Sell as many assets as you can and pay down your debt to a manageable level. Debt consolidation may be considered, but approach this option with caution to make sure it actually helps your situation.

• If you are at risk of filing for bankruptcy or already in the process, Submit Your Case for a Free Review from a Bankruptcy Attorney in Alabama.

Major Changes Made in 2005 Will Impact your Alabama Bankruptcy filing

Because of bankruptcy filing abuses, the law was changed in 2005 to include the following:

• Required pre-bankruptcy counseling
• Strict guidelines to qualify for a Chapter 7 filing (liquidation proceeding) including a “Means Test” to determine your ability to pay debts
• Tight restrictions on repeat bankruptcy filers
• Random audits to verify accuracy of bankruptcy filing information
• Enhanced oversight for Chapter 11 (reorganization) small business cases

Debts Which Generally Cannot be Discharged in Your Alabama Bankruptcy:

• Taxes owed to government agencies, such as the I.R.S., State, County, etc.
• Student loans (unless undue hardship can be proved),
• Debts incurred after the bankruptcy is filed
• Debts owed to a spouse for divorce-related obligatory expenses
• Debts not listed or scheduled or which the debtor waived discharge
• Debts for willful and malicious injury by the debtor to another person or property owned by another

Thoughts on Alabama Bankruptcy Filings

The promise of an improved economy next year may be little comfort to Alabamans who are suffering, as the State’s economy struggles to recover. If you are considering filing for bankruptcy in Alabama, decisions you make and actions you take now can have a positive or negative effect on the outcome of your bankruptcy proceedings. The U.S. Bankruptcy Court cautions that “Bankruptcy has long-term financial and legal consequences -- hiring a competent attorney is strongly recommended.” Click here to find Alabama attorney resources in your area.