If you’re considering filing bankruptcy in Montgomery, 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 Montgomery, Alabama, qualifying for bankruptcy depends on several factors, including your income, expenses, and the type of debts you owe. The Means Test is the primary tool used to evaluate whether you are eligible to file for Chapter 7 bankruptcy. It compares your monthly income to the median income of a similarly sized household in Alabama. If your income is below the state median, you qualify. Otherwise, additional assessments of your disposable income and unsecured debts are necessary to determine eligibility.

For Chapter 13 bankruptcy, there isn’t a Means Test, but there are debt limits. Your unsecured debts must be less than $425,275, and secured debts must be less than $1,297,850. These figures may change, so it’s advisable to consult the current limits. In Chapter 13, you must also have a regular income that allows you to make monthly payments under a repayment plan.

Chapter 11 bankruptcy, often used by businesses but available to individuals, does not have specific income or debt requirements but is generally used when debts exceed Chapter 13 limits or when complex debt restructuring is needed.

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

While it’s legally possible to file for bankruptcy without an attorney, known as filing “pro se”, the process can be intricate and challenging. Bankruptcy laws are complex, and even small errors in your filing can lead to the case being dismissed, assets being lost, or other complications. A lawyer can ensure that all paperwork is correctly filled out and filed, and can advise on whether bankruptcy is your best option, and if so, which type.

Attorneys are familiar with the federal and state laws governing bankruptcy, and they can navigate the legal system efficiently, ensuring that your rights and assets are protected. They also represent you in court and communicate with your creditors, providing a buffer that many find comforting.

A lawyer can also offer alternatives, help you understand the long-term consequences of bankruptcy, and formulate a post-bankruptcy plan to rebuild your financial standing.

Cost to File Chapter 7 Bankruptcy in Montgomery, AL

Chapter 7 bankruptcy, often referred to as “liquidation” bankruptcy, allows individuals to discharge unsecured debts after non-exempt assets are sold. The costs associated with this form of bankruptcy can be categorized into two main areas: court filing fees and attorney fees.

Court Filing Fees: The court filing fee for Chapter 7 bankruptcy is $390. This fee is paid directly to the court. This number may have changed, so you should check with the U.S. Bankruptcy Court in Montgomery or their website for the most current fee.

Attorney Fees: The cost for legal representation varies significantly depending on the complexity of your financial situation and the attorney you choose. In Montgomery, AL, attorney fees for Chapter 7 typically range between $1,000 to $2,500. Some attorneys may offer a flat fee, while others may charge by the hour.

In total, a debtor in Montgomery looking to file for Chapter 7 bankruptcy might anticipate costs ranging from $1,338 to $2,838 or more.

Cost to File Chapter 11 Bankruptcy in Montgomery, AL

Chapter 11 bankruptcy is primarily designed for businesses, allowing them to restructure and reorganize debts. It’s also available to individual debtors whose debts exceed Chapter 13 limits.

Court Filing Fees: The filing fee for Chapter 11 bankruptcy was $1,938. There could be additional administrative fees based on the specifics of the case.

Attorney Fees: Given the complexity of Chapter 11 filings, attorney fees can be substantial. Depending on the intricacy of the case and the attorney’s rates, these fees can range from $10,000 to $50,000 or even more.

Overall, the total cost for a Chapter 11 bankruptcy in Montgomery, AL can start around $11,738 and escalate significantly based on various factors.

Cost to File Chapter 13 Bankruptcy in Montgomery, AL

Chapter 13 bankruptcy allows debtors to develop a 3-5 year repayment plan to pay off all or a portion of their debts.

Court Filing Fees: The court filing fee for Chapter 13 bankruptcy is $363.

Attorney Fees: Legal fees for Chapter 13 are generally higher than Chapter 7 due to the ongoing nature and complexity of the repayment plan. In Montgomery, these fees can range from $2,800 to $6,400 or more.

The combined costs, including both court and attorney fees for Chapter 13 bankruptcy in Montgomery, might range between $2,990 and $6,513 or higher, depending on the specifics of the case.

It’s crucial to consult local resources or an attorney for the most current and precise cost information, as these figures may change over time.

The decision to file for bankruptcy is significant and can carry long-lasting financial and personal implications. While the costs associated with filing for bankruptcy in Montgomery, AL—whether it’s Chapter 7, 11, or 13—can be substantial, it’s essential to view these costs in the context of the broader financial relief and fresh start that bankruptcy can offer.

Each chapter of bankruptcy serves a distinct purpose, catering to different financial situations and needs. While Chapter 7 might be suitable for those with limited income and assets, Chapter 13 offers a structured repayment plan, and Chapter 11 provides businesses or individuals with significant debts an opportunity to restructure.

It’s also crucial to remember that while some may see the upfront costs as prohibitive, the potential to mitigate large-scale debt or prevent further financial downfall might outweigh these initial expenses in the long run. However, the complexity of bankruptcy laws and the potential consequences of errors during the process underscore the importance of seeking qualified legal advice.

If you’re considering bankruptcy, it’s recommended to consult with a bankruptcy attorney in Montgomery, AL. They can provide guidance tailored to your unique circumstances, ensuring you make informed decisions about your financial future. Above all, remember that while bankruptcy might present an initial challenge, for many, it’s the first step towards regaining financial stability and building a more secure future.

Reliable Bankruptcy Attorneys in Montgomery, AL

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

Bond & Botes Law Offices

311 Catoma St, Montgomery, AL 36104, United States

Brock & Stout Attorneys at Law

6336 Woodmere Blvd, Montgomery, AL 36117, United States

Stephen L. Klimjack

2800 Zelda Rd #100, Montgomery, AL 36106, United States

Grainger Legal Services

4220 Carmichael Ct N, Montgomery, AL 36106, United States

Montgomery, AL Zip Codes We Proudly Serve:

36043, 36064, 36104, 36105, 36106, 36107, 36108, 36109, 36110, 36111, 36112, 36113, 36115, 36116, 36117

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