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

Am I Qualified for Bankruptcy?

Bankruptcy is a legal procedure that allows individuals and businesses to relieve themselves of overwhelming debt. In Mobile, Alabama, as with other parts of the US, there are specific qualifications that must be met for a person or entity to file for bankruptcy.

To determine eligibility:

1. Means Test: Primarily for individuals looking to file Chapter 7 bankruptcy, the Means Test compares your monthly income to the median income for a household of your size in Alabama. If your income is below the median, you qualify. If it’s above, further analysis of your expenses and debts will determine eligibility.
2. Counseling Requirement: Before you can file for bankruptcy in Mobile, you are required to complete credit counseling from an approved agency. This must be done 180 days prior to filing.
3. Previous Bankruptcies: If you’ve filed for bankruptcy in the past, there may be waiting periods. For instance, after a Chapter 7 discharge, you need to wait eight years before filing another Chapter 7.
4. Business Entities: If a business is insolvent or faces overwhelming debts, it might qualify for Chapter 11 bankruptcy. Each situation is unique, so it’s essential to evaluate the business’s financial standings meticulously.

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

While it is possible to file for bankruptcy without an attorney, known as “pro se,” it isn’t usually recommended. The bankruptcy process is complex and requires a good understanding of both federal and state laws.

1. Complex Process: Bankruptcy laws are intricate. One small mistake could lead to a case being dismissed or assets unintentionally being left unprotected.
2. Professional Guidance: An attorney can offer guidance on which type of bankruptcy is most suitable, protect assets, and ensure that all necessary documents are filed.
3. Representation in Court: If creditors contest the bankruptcy, having an attorney becomes invaluable in representing and defending your interests.

In essence, while it’s not mandatory, hiring a lawyer significantly increases the chance of a successful and beneficial bankruptcy process.

Cost to File Chapter 7 Bankruptcy in Mobile, AL

Filing for Chapter 7 in Mobile, Alabama, requires understanding both the court fees and attorney costs:

1. Court Fees: As of my last update, the filing fee for Chapter 7 was $398. This may be subject to change, and it’s always good to check current rates.
2. Attorney Fees: While they can vary, attorney fees for Chapter 7 in Mobile typically range between $1,200 to $2,800, depending on the complexity of the case.
3. Additional Costs: There may be costs for mandatory credit counseling courses and for obtaining credit reports.

Cost to File Chapter 11 Bankruptcy in Mobile, AL

Chapter 11, often referred to as reorganization bankruptcy, is primarily for businesses but can be for individuals with significant debts and assets:

1. Court Fees: The filing fee for Chapter 11 is $1,938, but there might also be quarterly fees based on the debtor’s disbursements.
2. Attorney Fees: Due to its complexity, Chapter 11 attorney fees can be significant, often ranging from $11,000 to $55,000 or more, based on the business’s size and debt structure.
3. Management Costs: Since Chapter 11 involves reorganizing and potentially restructuring business operations, there may be additional costs involved.

Cost to File Chapter 13 Bankruptcy in Mobile, AL

Chapter 13, or the wage earner’s bankruptcy, allows individuals to develop a plan to repay their debts:

1. Court Fees: The filing fee for Chapter 13 stands at $393, though this can change.
2. Attorney Fees: Attorney fees for Chapter 13 are generally higher than Chapter 7 but less than Chapter 11. They usually range from $3,200 to $6,800.
3. Plan Payments: It’s essential to remember that in Chapter 13, you’re committing to a repayment plan which usually lasts 3-5 years. This isn’t a direct “cost” of filing, but it’s a commitment to repay a portion of your debts.

In conclusion, while bankruptcy can offer a fresh financial start, understanding the nuances of the process, costs involved, and seeking professional assistance is crucial to navigate this complex legal terrain successfully.

Reliable Bankruptcy Attorneys in Mobile, AL

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

Brock & Stout Attorneys at Law

107 St Francis St #2320, Mobile, AL 36602, United States

Padgett & Robertson

4317 Downtowner Loop N, Mobile, AL 36609, United States

Loris Bankruptcy Law Firm

1358 Dauphin St, Mobile, AL 36604, United States

Ryan Legal Services, Inc.

9 Dauphin St UNIT 201, Mobile, AL 36602, United States

Mobile, AL Zip Codes We Proudly Serve:

36571, 36575, 36582, 36602, 36603, 36604, 36605, 36606, 36607, 36608, 36609, 36610, 36611, 36613, 36615, 36617, 36618, 36619, 36688, 36693, 36695

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