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Bankruptcy

Bankruptcy is a court-supervised legal process that helps people who can no longer pay their debts get a fresh start by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect financially troubled businesses.

In Alabama, as in all states, bankruptcy is governed primarily by federal law, specifically Title 11 of the United States Code, also known as the Bankruptcy Code. The process is designed to help individuals and businesses eliminate or repay their debts under the protection of the bankruptcy court. There are several types of bankruptcy filings, but the most common for individuals are Chapter 7 and Chapter 13. Chapter 7 bankruptcy involves the liquidation of assets to pay off debts, while Chapter 13 allows individuals with a regular income to develop a plan to repay all or part of their debts over time. Businesses may file for Chapter 11, which allows for reorganization under the bankruptcy laws of the United States. Alabama has its own set of exemptions that determine what property can be kept in a Chapter 7 bankruptcy and may affect the details of the repayment plan in Chapter 13. Bankruptcy cases in Alabama are filed in one of three bankruptcy districts: Northern, Middle, or Southern, and are subject to local rules in addition to federal bankruptcy laws.

Legal Articles

State Statutes

adversary proceeding assumption of contracts, leases automatic stays

Chapter 11 bankruptcy Chapter 12 bankruptcy Chapter 13 bankruptcy Chapter 13 bankruptcy — confirmation hearing Chapter 13 bankruptcy — disposable income Chapter 13 bankruptcy — eligibility Chapter 13 bankruptcy — repayment plan Chapter 7 bankruptcy Chapter 7 bankruptcy — changing trustee Chapter 7 bankruptcy — conversion to chapter 11, 12, or 13 Chapter 7 bankruptcy — discharge Chapter 7 bankruptcy — eligibility Chapter 7 bankruptcy — means test Chapter 7 bankruptcy — no assets cosignors courts creditor claims — secured, unsecured, priority

debtor in possession

estate exemptions

hardship discharges homestead exemption

involuntary bankruptcy

liquidation

nondischargeable debt nondischargeable debt — alimony nondischargeable debt — child support nondischargeable debt — fraud nondischargeable debt — student loans

petition preferential transfer priority debt proof of claim

reaffirmation of debt reorganization plan

section 341 meeting of creditors statement of financial affairs

trustee

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Articles

Understanding the Different Personal Bankruptcy Chapters

At some point in life, many of us will face financial hardships. When debt becomes overwhelming, one potential avenue of relief is filing for personal bankruptcy.

Understanding Personal Bankruptcy: Types, Eligibility, and Consequences

If you're considering filing for personal bankruptcy, it's crucial to understand the different types available, their implications, and the advantages and drawbacks of each.

Alabama State Code