Alabama Bankruptcy Laws
Alabama among other states of the United States of America has different bankruptcy laws when it comes to filling bankruptcy. If one happens to be insolvent, there are several laws that can be applied to exempt some personal properties from transferring ownership to the debtors. Some of the chapters in the Alabama laws that anyone that has to file for bankruptcy in Alabama should know are mostly covered by chapters 7, 9, 11. 12. 13 and 15. These chapters are designed to provide some form of integral protection to the individual or families in debt, but only applicable when they are filled in the Alabama bankruptcy courts.
Alabama Bankruptcy Exemptions:
Some of the exemptions in the Alabama bankruptcy laws include the residential properties, personal properties and wages among others. The success of the fillings and cases also rely heavily on the legal expertise of the lawyer. Alabama has the following protection plan that covers and not limited to your home for residential up to $5,000, $3000 for personal property including photos, army weapons and uniforms, and books.
Alabama Chapter 7 Bankruptcy Laws:
Alabama chapter 7 bankruptcy laws cover the liquidation of the debtors assets with the exception of exemptions provided for by the laws. The liquidation proceeds can then be distributed to the creditors upon sale of the assets.
Alabama Chapter 11 Bankruptcy Laws:
Chapter 11 of the Alabama bankruptcy laws covers the commercial sector where partnerships are involved. The chapters helps the debtors in that it provides the chance of settling debts in a corporation overtime so as not to dry out the businesses.
Alabama Chapter 13 Bankruptcy Laws:
Chapter 12 helps families that are impoverished with some regular income in planning a repayment plan. The pan extends over 3 years when successful and is mostly associated with farming and fishermen families.
Chapter13 bankruptcy laws provide debtors with the advantage of an extension of the repayment period for debtors with a regular income; this allows the debtor in keeping possession of their assets though they have to eventually settle their dues.
Chapter 15 covers the interest of debtors over borders as well as ancillary cases.
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