What is Chapter 7 Bankruptcy?
Chapter 7 is a type of bankruptcy designed for debtors in financial difficulty who do not have the ability to pay their existing debts. Under Chapter 7, the appointed bankruptcy trustee will sell the debtors nonexempt properties. The proceeds of this sale will then be used to pay the creditors. Debtors may retain certain properties that are deemed exempt under governing law.
Do I Qualify for Chapter 7 Bankruptcy?
In Alabama, a debtor who earns below the median income of the State of Alabama for a family of equivalent size is eligible. Not everyone is eligible for Chapter 7, nor is every debt dischargeable under the Bankruptcy Code. A few examples of non-dischargeable debts include taxes, student loans, child support, and alimony. A full list of these debts will be provided to you upon request.
Filing Chapter 7 Bankruptcy in Alabama
Tolar & Tolar is a debt relief agency that helps residents of Alabama file for Chapter 7 bankruptcy. We have a specialized team of attorneys who will review your case and determine if you are qualified. Contact us to schedule a free initial consultation!