Alabama Bankruptcy

The state of Alabama is divided into three bankruptcy districts: Alabama Middle Bankruptcy Court, Alabama Northern Bankruptcy Court and Alabama Southern Bankruptcy Court. These courts serve the entire state of Alabama.

The Gulf Coast is showing a steady climb in bankruptcy filings, particularly in states hardest hit by Hurricanes Katrina and Rita, such as Louisiana , Mississippi , and Alabama . Homeowners struck by the storms and receiving no assistance from their insurance companies are looking to file Chapter 13 in order to prevent foreclosure on their properties and get some financial relief. Chapter 7 only provides a temporary stop to Alabama foreclosure proceedings. There are very few Chap 11 BK filings because chapter 11 is too expensive and complicated. Plus, it doesn't have provisions for preventing foreclosure. Even without the hurricane damage compounding matters, Alabama bankruptcy lawyer Brad Botes said that consumers are still drowning in high credit card debt, spiking home interest rates, and out-of-control home equity loans.

Avoiding Bankruptcy
Alabama chapter 7 bankruptcy laws and Alabama chapter 13 bankruptcy laws have changed the landscape of filing for bankruptcy. It is now more complicated and expensive to file for chapter 7 and chapter 13 bankruptcy. But, there are two aggressive, but effective ways of avoiding bankruptcy: loan modification and debt settlement. A debt settlement involves getting your creditors to agree to take less than what you owe as full payment for the debt. A loan modification involves negotiating with your mortgage lender for rates and terms that allow you to stay in the loan. Mobile bankruptcy lawyers and other Alabama bankruptcy lawyers can explain your options and advise you on the best one to choose.