Info on Bankruptcy Law in Alabama

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Alabama has unique considerations when filing for bankruptcy. The culture of this State means that filing bankruptcy is almost a trend. In 2016, Houston County, Alabama was one of the third-highest counties for bankruptcy filings in the United States alone, as a whole. Bankruptcy, in some people’s minds, means giving up everything you own including your house or apartment. You can, however, keep exemptions such as clothing, and household goods. You also keep retirement benefits, your so long as it is an inexpensive car, as well as multiple kinds of assets. Exemptions apply to whatever State you are living in at the time of the bankruptcy filing. 

Chapter 7 in Alabama has some specific considerations. Debtors have the choice between the state list and the federal list. They have to choose which list is better, depending on what is owed by the debtor and what the debtor wants to keep. Bankruptcy can be difficult, causing the debtor a great deal of stress. The debtor has to make some serious choices. Sometimes this can cause immense difficulty because the debtor needs to make adequate choices. Paying off debt is necessary to eventually have the debtor work their way out of bankruptcy

There are some federal exemptions that are actually not on the original federal list. The homestead exemption is Alabama code that researching with a law firm can help you with, such as a bankruptcy law firm birmingham al. The homestead exemption is part of Alabama Code 6-10-2 because filing is limited to $15,000 while $30,000 can be husband and wife filing together. Equity simply means that the value of the house is subtracted from the balance due on the mortgages. The homestead is limited to 160 acres because if the homestead declaration you have to file a declaration with your county until you file for bankruptcy. 

Filing for bankruptcy is a heavy task requiring a cool head because if an individual cannot pay their bills, then, in that case, the right to file by bankruptcy is made obvious. A bankruptcy filing means creditors are stopped in their tracks from harassing you about your debt

Debtors need to stop foreclosure on their house, which gives the debtor an opportunity to prevent repossession of your car, among other situations. Filing for bankruptcy provides a way to get a fresh financial start. A fresh start is extremely important for resetting the finances of a debtor. A fair warning though is that filing for bankruptcy does not cure a major debt crisis. 

What cures debt is being responsible with paying it off because debt is taken care of by getting a good job or somehow making enough money in unconventional ways besides working such as the stock market or a bond. A bond can be bought for $25 while you watch it expand. Being in debt is a crisis. It is best to protect debt cosigners because the cosigner may have to repay the loan altogether. Declaring bankruptcy with a cosigner can be dangerous to finances.

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