Frequently Asked Questions About Bankruptcy
How do you intend to handle your overwhelming debt? Bankruptcy might be your best solution. Our Alabama bankruptcy attorneys can educate you on your bankruptcy options. We help families in Elmore County and Wetumpka communities. Here is a collection of frequently asked questions:
What types of bankruptcy are available in Elmore County, Alabama?
The most common forms of bankruptcy are:
- Chapter 7: This form of bankruptcy allows individuals to relieve large sums of debt within a short amount of time, but it may require liquidating some assets.
- Chapter 13: Individuals who have a large amount of debt and high income can have their debts restructured into a repayment plan while retaining their property.
- Chapter 11: This is for businesses that are struggling to stay afloat.
- Chapter 12: This provides relief specifically for farmers.
Our attorneys can help you explore the bankruptcy option that works best for you.
Where is the bankruptcy court for Elmore County residents located?
It is crucial to know where to file your bankruptcy. The U.S. Bankruptcy Court for the Middle District of Alabama includes three locations:
- Northern Division: One Church Street, Montgomery, AL 36104
- Eastern Division (George W. Andrews Federal Building): 701 Avenue A, Opelika, AL 36801
- Southern Division: 100 West Troy Street, Dothan, AL 36303
The main office and mailing address for all three divisions is the Northern Division.
Do I need an attorney to file for bankruptcy in Elmore County?
No. It is possible to file for bankruptcy on your own. However, you can protect your legal rights and avoid complications by working with an experienced and knowledgeable bankruptcy attorney. Our Elmore County attorneys are educated on Alabama bankruptcy laws and procedures.
How much does it cost to file for bankruptcy in Elmore County?
Debtors may expect filing fees for bankruptcy. For 2025, the filing fees are as listed:
- Chapter 7: $338
- Chapter 13: $313
These fees may increase every year. In some cases, filing fees may be waived if debtors meet certain income requirements.
Can I keep my home if I file for bankruptcy in Elmore County?
Yes. In a Chapter 7 bankruptcy, certain assets, such as clothing and furniture, are exempt. A house or mobile home may be exempt from bankruptcy. However, there is a limit to these exemptions. A specific amount of equity is exempt from bankruptcy. In Alabama, the homestead exemption is $16,450 for individuals. Married couples have twice the exemption limit of $32,900.
Chapter 13 bankruptcy is often the preferred choice for homeowners. The debtor can keep their home during a Chapter 13 bankruptcy and continue making payments. Our attorneys can help you protect your assets from liquidation.
Will I lose my car if I file for bankruptcy in Elmore County?
If you file for Chapter 13 bankruptcy, you may be able to keep your vehicle as long as you continue to make payments on your car loan. However, you may lose your car in a Chapter 7 bankruptcy, depending on the equity of your vehicle. In Alabama, debtors have a vehicle exemption of $8,223. If the value of a car is more than this limit, the vehicle may need to be liquidated or refinanced.
How will bankruptcy affect my credit score?
The largest downfall of bankruptcy is that your credit score is negatively impacted. Your bankruptcy may show on your credit report for seven to 10 years. However, it is possible to increase your credit score by making certain financial investments. For example, you could make consistent payments on a secured credit card.
Can bankruptcy stop foreclosure on my Elmore County property?
Yes. Filing for bankruptcy places a temporary hold on foreclosure proceedings. Chapter 13 may allow you to catch up on mortgage payments or negotiate a loan modification.
What debts cannot be discharged in bankruptcy?
While bankruptcy can discharge medical debt, credit card debt and other financial obligations, not all debts are eligible for discharge. Debts that cannot be discharged may include the following:
- Student loans
- Recent taxes
- Child support
- Alimony
You can work with an experienced bankruptcy lawyer to learn about what debts are eligible for discharge.
How long does the bankruptcy process take in Elmore County?
The amount of time it takes to finish the bankruptcy process will depend on the type of bankruptcy and the complexity of the case. A Chapter 7 bankruptcy may only take four to six months to discharge debts. A Chapter 13 bankruptcy may take three to five years to complete. You can explore your legal options for a swift bankruptcy filing.
Are there alternatives to bankruptcy for Elmore County residents?
Yes. Residents of Elmore County can work with an experienced attorney to learn about the alternatives to bankruptcy. Some options include debt consolidation, negotiations with creditors and credit counseling.
How often can I file for bankruptcy in Alabama?
You can file for bankruptcy as many times as you want. However, if you have filed for bankruptcy in the past, you may need to wait several years before you can file again. How long you will have to wait depends on the type of bankruptcy you plan to file and the prior filing. The amount of time you will have to wait is as follows:
- Chapter 7 to Chapter 7 bankruptcy: Eight years
- Chapter 7 to Chapter 13 bankruptcy: Six years
- Chapter 13 to Chapter 7 bankruptcy: Four years
- Chapter 13 to Chapter 13 bankruptcy: Two years
You can talk to an attorney to learn how much longer you would need to wait to file for bankruptcy again.
Talk To An Experienced Elmore County Bankruptcy Attorney
To begin your bankruptcy journey, you can contact the Law Office of Jeffrey J. Courtney, LLC, and talk to an experienced Elmore County lawyer. Call us today at 334-521-1454 or contact us online to explore your financial relief options and begin your free initial case evaluation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.