If you’re considering filing bankruptcy in Huntsville, AL, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

In Huntsville, AL, as in other parts of the United States, the qualification for bankruptcy depends on the type of bankruptcy one intends to file, the individual’s financial situation, and recent financial actions.

The two most common forms for individuals are Chapter 7 and Chapter 13. Chapter 11 is typically reserved for businesses but can sometimes be used by individuals with substantial debts or assets.

1. Chapter 7 – This is a liquidation bankruptcy where non-exempt assets might be sold to repay creditors. To qualify, you’ll need to pass the “means test.” This test compares your income to the median income in Alabama. If your income is below the median, you automatically qualify. If it’s above, further assessments of your expenses and debts will determine if you can file.
2. Chapter 13 – This is a reorganization bankruptcy, where you keep your property but repay a portion of your debts over 3 to 5 years. To qualify, your debts need to be below certain limits. The debt limits were $420,275 for unsecured debts and $1,357,850 for secured debts. These amounts may have changed, so it’s crucial to verify the current figures. Moreover, you must show that you have sufficient income to meet your repayment obligations.
3. Chapter 11 – Though typically used by businesses, some high-net-worth individuals with complex debts and assets might use Chapter 11. Qualification requirements are more flexible than Chapter 13, but it’s generally more expensive and complicated.

Recent financial transactions can also affect eligibility. For instance, running up credit card debt shortly before filing or transferring assets to family members might disqualify you or lead to allegations of fraud.

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Do You Need a Lawyer to File For Bankruptcy in Huntsville, AL?

While it is legally possible to file for bankruptcy without a lawyer, known as filing “pro se,” it is not recommended. Bankruptcy laws are complex, and simple mistakes can lead to a case being dismissed or assets being unnecessarily liquidated.

A bankruptcy lawyer can provide invaluable advice tailored to your situation, helping ensure that:

1. You choose the best type of bankruptcy for your circumstances.
2. You complete and file all necessary paperwork correctly.
3. You fully understand your rights and responsibilities throughout the process.

In Huntsville, AL, as in other jurisdictions, the consequences of mishandling a bankruptcy case can be severe. An attorney can guide you through the process, represent you at hearings, and advocate on your behalf with creditors. Their expertise can potentially save you money and stress in the long run.

Cost to File Chapter 7 Bankruptcy in Huntsville, AL

In Huntsville, AL, the cost to file for Chapter 7 bankruptcy consists of:

1. Filing fees: The filing fee for Chapter 7 is $398. However, these fees are periodically adjusted, so it’s essential to check the current rate.
2. Attorney fees: These can vary widely depending on the complexity of your case, but on average, you might expect to pay between $1,200 to $2,700 for representation.
3. Credit counseling and debtor education courses: These are mandatory and usually cost between $25 to $60 each.

It’s worth noting that if you can’t afford the filing fee, you might qualify for a waiver or be allowed to pay in installments.

Cost to File Chapter 11 Bankruptcy in Huntsville, AL

Chapter 11 bankruptcy is more complex and, consequently, more expensive.

1. Filing fees: The fee is $1,7398, but again, this may have changed.
2. Attorney fees: Due to the complexity of Chapter 11, attorney fees can range widely but typically start at $11,000 and can go much higher depending on the case’s intricacy.
3. Administrative fees: Unlike other forms, Chapter 11 filers must pay quarterly fees to the U.S. Trustee Program based on disbursements.

Cost to File Chapter 13 Bankruptcy in Huntsville, AL

Chapter 13’s costs include:

1. Filing fees: This fee is $393.
2. Attorney fees: These can vary but often fall between $3,200 to $5,500. In many cases, part of these fees can be included in the repayment plan.
3. Credit counseling and debtor education courses: Like Chapter 7, these mandatory courses usually cost between $25 to $60 each.

In conclusion, bankruptcy can provide a fresh financial start, but it’s essential to understand the qualifications, costs, and whether you need legal representation. In most cases, seeking the counsel of a bankruptcy attorney in Huntsville, AL, will be a wise investment in your financial future.

Reliable Bankruptcy Attorneys in Huntsville, AL

Below is a list of reputable bankruptcy attorneys in Huntsville, AL. They can help you with both personal and business bankruptcy information.

Bond & Botes Law Offices

225 Pratt Ave NE, Huntsville, AL 35801, United States

Dezenberg & Smith, Attorneys At Law

2700 Winchester Rd NE Suite G, Huntsville, AL 35811, United States

Bankruptcy Law Offices of Joseph G. Pleva

3330 L and N Dr SW, Huntsville, AL 35801, United States

Law Offices of John C. Larsen

1733 Winchester Rd NE, Huntsville, AL 35811, United States

Huntsville, AL Zip Codes We Proudly Serve:

35613, 35649, 35671, 35741, 35748, 35749, 35756, 35757, 35758, 35759, 35763, 35773, 35801, 35802, 35803, 35805, 35806, 35808, 35810, 35811

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