Because Your Rights Matter
At Alabama Consumer Law Group, LLC, bankruptcy is not just something we do—it’s what we do best. Our team focuses on helping individuals and families across Alabama understand their options, protect what matters most, and move forward with confidence.
We are here to guide you through every step of the bankruptcy process, answer your questions in plain language, and stand beside you in and out of court.
Below, you’ll find a brief description of each type of bankruptcy chapter we handle, so you can start to see which path may fit your situation. At the bottom of this page, there is also a link that will take you to the official U.S. Courts bankruptcy information, where you can read more straight from the source.
Chapter 7 Liquidation
Known as liquidation bankruptcy, Chapter 7 is designed to wipe out qualifying unsecured debts, giving you a fresh financial start. Most clients find that this process allows them to eliminate credit card debt and medical bills quickly, often within a few months.
Eligibility Criteria
- Passing the Bankruptcy Means Test
- Income level assessment relative to Alabama median
- Complete credit counseling within 180 days prior
- No Chapter 7 discharge in the last 8 years
The Legal Process
Our attorneys guide you through documenting assets, filing the petition to trigger an automatic stay, and attending the 341 Meeting of Creditors. We ensure your exemptions are maximized to protect your personal property throughout the liquidation phase.
Chapter 13: Repayment Plan (Individuals & Families)
Chapter 13 is designed for individuals and families with regular income who need time to catch up on past‑due debts while keeping important property like a home or car. Through a court‑approved repayment plan, you can reorganize what you owe and pay it back over three to five years.
✔ Save Your Home from Foreclosure
✔ Fixed 3 to 5 Year Repayment Timeline
✔ Immediate Automatic Stay Protection
Chapter 11 Reorganization
Chapter 11 functions as a powerful reorganization tool for Alabama businesses and individuals with substantial debt. This path allows you to restructure financial obligations and remain operational while creating a sustainable plan to repay creditors over time.
Who Chapter 11 Is For
- This option is ideal for businesses and individuals managing complex financial portfolios or high debt levels that exceed other limits. It offers a path to reorganize with confidence.
How the Process Works
We help your business stay open while proposing a restructured repayment plan to the court. Our legal team manages the approval process and creditor negotiations, ensuring you maintain daily operations while successfully reorganizing your financial future.
Chapter 12: Family Farmers & Fishermen
Chapter 12 provides Alabama’s family farmers and fishermen a tailored path to reorganize debt while keeping their operations running. It offers higher debt limits and more flexibility than other chapters, allowing you to create a seasonal repayment plan that fits your industry’s unique income.
Why Chapter 12 Exists
✔ Tailored Debt Relief for Agriculture
How Chapter 12 Helps
Choosing Your Bankruptcy Path
Chapter 11
Usually utilized by businesses or individuals with more complex financial situations, Chapter 11 allows for a customized reorganization plan. While our practice focuses primarily on Chapters 7 and 13, we also assist select clients and businesses with Chapter 11 matters and can help you understand whether it is an appropriate option for your case.
Chapter 12
Chapter 12 is a specialized form of bankruptcy designed specifically for family farmers and family fishermen. Although most of our work involves Chapters 7 and 13, we are able to advise eligible clients about Chapter 12 and, when appropriate, help them pursue this relief or connect them with additional resources.
Bankruptcy FAQ
Will I lose everything I own if I file for bankruptcy?
No. Bankruptcy laws include 'exemptions' that allow you to keep essential property such as your home, car, and retirement accounts. Our team will review your assets to help you maximize these protections.
How long does the bankruptcy process take?
Chapter 7 cases are typically completed in four to six months. Chapter 13 cases involve a repayment plan that lasts between three to five years, providing long-term relief for those with stable income.
Will bankruptcy stop creditors from calling me?
Yes. As soon as your case is filed, an 'automatic stay' goes into effect. This legally prohibits creditors from contacting you, garnisheeing your wages, or proceeding with a foreclosure or repossession.