Understanding Chapter 7 Bankruptcy in Alabama

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. You usually can keep your clothing and household goods, your retirement benefits, your car if it is not too valuable, and many other assets.The exemptions that apply to any case depend on the state you live in at the time you file your case. Each state usually has its own list of exemptions that citizens of that state are able to keep. This list is written into the law of that state.There is another list, called the federal exemptions list, which is provided in the federal bankruptcy law itself. Each state can choose, through its own law, whether debtors in that state must only use the state list, or can instead choose the federal list. Sometimes the federal list is better, sometimes the state list is better. It depends on what the debtor owns and wants to keep.See also: How Often Can You File Chapter 7 Bankruptcy in Alabama?

Cost to file chapter 7 in Alabama

The chapter 7 filing fees in Alabama are $338, but that doesn’t tell the whole story of the real cost to file bankruptcy. Bankruptcy lawyers usually charge between $1,000 and $2,000 to file a chapter 7 case, in addition to the filing fee.

Where are the Alabama bankruptcy courts located?

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. Click any of the links below for more details on which county each court covers, plus operating hours, information on parking, and more.

Northern District of Alabama

Northern Division: 400 Well St., Decatur

Eastern Division: 1129 Noble St., Anniston

Southern Division: 1800 Fifth Avenue North, Birmingham

Western Division: 2005 University Blvd., Tuscaloosa

Middle District of Alabama

Northern Division: One Church St., Montgomery (main office; also the mailing address for all three divisions)

Eastern Division: 701 Avenue A, Opelika (hearings only)

Southern Division: 100 W. Troy St., Dothan (hearings only)

Southern District of Alabama

Mobile: 201 St. Louis St., Mobile (also mailing address for Selma division)

Selma: 102 Church St., Selma (hearings only)

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