Stopping the Paycheck Drain in Alabama
The moment we file your bankruptcy petition in the Birmingham division of the Northern District, a powerful legal injunction goes into effect. This stay immediately halts wage garnishments, stops harassing phone calls, and pauses lawsuits and repossession efforts. It provides you with the “breathing space” needed to evaluate your path forward without the constant pressure of collection agencies.
Chapter 7
For many individuals, the most effective path is Chapter 7 bankruptcy, often called “Straight Bankruptcy” or “Liquidation.” In Alabama, Chapter 7 is a streamlined process that can discharge most unsecured debts—including credit cards, medical bills, and personal loans—in as little as 90 to 120 days. One of the most common myths I hear in my office is that you will lose everything you own if you file for Chapter 7. This is categorically false. By utilizing the Alabama state exemptions, most of my clients are able to keep their home, their car, and their personal belongings.
Alabama Homestead Exemption
As of 2026, the Alabama homestead exemption allows you to protect up to $18,800 in equity in your primary residence ($37,600 for married couples). Furthermore, our “wildcard” exemption provides an additional $9,400 to protect other assets like your vehicle or household furniture. Most Chapter 7 cases in Alabama are “no-asset” cases, meaning the debtor keeps all their property while completely erasing their debt burden.
Eligibility
Eligibility for this fresh start depends on the Alabama Means Test. For cases filed after November 1, 2025, a single person earning less than $62,672 or a family of four earning less than $104,003 will generally qualify automatically for Chapter 7. If you earn more than these amounts, don’t be discouraged. We can often use your actual expenses—such as mortgage payments, insurance, and taxes—to show that you still qualify under the law.
The transition to a debt-free life also involves modern convenience. In 2026, the mandatory 341 Meeting of Creditors is conducted via Zoom for Government. This means you can attend your hearing from a quiet location without the stress of navigating the federal courthouse in downtown Birmingham. As a solo practitioner, I personally guide you through this virtual process, ensuring your technology is ready and your screen name is properly formatted to include your case number.
Don’t Let a Collection Agency Dictate Your Future
Bankruptcy is a legal right, not a punishment. It is a tool designed to give honest debtors a fresh start while treating creditors fairly. If you’re ready to stop the paycheck drain and start rebuilding your financial life, call my office today for a free, confidential consultation. Let’s talk about how the law can work for you.
