Northwestern Alabama Personal Bankruptcy Lawyers

Bankruptcy is a legal solution to your serious financial problems

You may feel hesitant about pursuing bankruptcy as a solution to your financial troubles. Start by considering whether you recognize any of these warning signs:

• You can only pay the minimum on your monthly bills
• You cannot draw up a budget that will bring you out of debt within five years
• You have received notices of repossession or foreclosure
• You have had a severe financial setback, such as job loss or major illness

If you are experiencing any of the above situations, you should contact the Law Offices of H. Thomas Heflin, Jr. to discuss the possibility of an Alabama bankruptcy petition.

Alabama Chapter 7 bankruptcy

Also known as straight bankruptcy, a Chapter 7 filing allows you to dismiss most of your debts.

Passing the means test

You need to pass a means test to prove that you truly cannot pay your debts. First, you must show that you earn less than the median income in Alabama:

• Add $6,900 for each additional family member

If you earn more than the cut-off amount, our attorneys help you identify allowable deductions from your income to help you pass the means test.

Liquidation of your assets

If you pass the means test, your non-exempt property is sold by a court-appointed trustee to pay back your creditors. In Alabama, you get to keep state-exempt property:

Nearly all of these exempt items are subject to complex limitations and exceptions. There are also certain major debts that cannot be eliminated under Chapter 7, including taxes, child support and student loans. Our lawyers review all of the details with you before we make a final decision together about a Chapter 7 bankruptcy.

Alabama Chapter 13 bankruptcy

An alternative to liquidation is reorganization under Chapter 13, sometimes called wage earner bankruptcy. You present the bankruptcy court with a debt repayment plan of three to five years. If your petition is accepted, your creditors are legally required to accept the payment schedule. People often choose Chapter 13 bankruptcy for the chance to pay off—

You must have a reliable source of income for your Chapter 13 proposal to be accepted. Our firm helps you determine whether your situation can support a reorganization under an Alabama Chapter 13 bankruptcy.

Meet with an experienced Alabama bankruptcy lawyer

To schedule a free consultation in Tuscumbia about your bankruptcy case, please contact the Law Offices of H. Thomas Heflin, Jr.