How much does it cost to file bankruptcy in Alabama?

At Dani V. Bone & Sam D. Bone, Attorneys at Law, our fee for Chapter 7 bankruptcy is $1,750 plus the $338 court filing fee. We offer free consultations to discuss your situation and payment options.

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

Chapter 7 is a liquidation bankruptcy that wipes out most unsecured debts like credit cards and medical bills. It typically takes 4 to 6 months and requires passing a means test. Chapter 13 is a reorganization bankruptcy where you repay debts over 3 to 5 years. Our firm handles Chapter 7 bankruptcy. Contact us to find out if Chapter 7 is the right option for you.

Will bankruptcy stop wage garnishment in Alabama?

Yes. The moment you file bankruptcy, an automatic stay goes into effect that immediately stops wage garnishment, collection calls, lawsuits, and most other collection actions.

What property can I keep if I file bankruptcy in Alabama?

Alabama has its own bankruptcy exemptions. You can protect up to $15,000 in home equity ($30,000 for married couples), up to $7,500 in vehicle equity, up to $3,000 in personal property, and 75% of your disposable wages. Retirement accounts such as 401(k)s and IRAs are generally fully protected. An attorney can help you determine exactly what you can keep based on your specific situation.

How long does bankruptcy stay on my credit report?

A Chapter 7 bankruptcy stays on your credit report for 10 years from the filing date. However, many people begin rebuilding their credit within 1 to 2 years of receiving their discharge.

Can I keep my car and house if I file Chapter 7 bankruptcy in Alabama?

In many cases, yes. In Chapter 7, you can keep your car and house if you are current on your payments and the equity is within Alabama's exemption limits. The answer depends on your specific equity and financial situation. Call us for a free consultation to find out where you stand.

How long does Chapter 7 bankruptcy take in Alabama?

Chapter 7 bankruptcy typically takes 4 to 6 months from the date of filing to discharge. The automatic stay that stops collections and wage garnishment goes into effect immediately upon filing.

What is the means test for Chapter 7 bankruptcy in Alabama?

The means test determines whether you qualify for Chapter 7 bankruptcy. If your household income is below Alabama's median income for your household size, you automatically qualify. If your income is above the median, a more detailed calculation is done to determine eligibility. Contact us for a free consultation and we can walk you through whether you qualify.

Stop the Garnishment. Eliminate the Debt. Start Over.

Etowah County & Gadsden Bankruptcy Attorneys

Bone Law Firm handles Chapter 7 bankruptcy for individuals and families in Gadsden, Etowah County, and throughout North Alabama. If you are overwhelmed by debt you cannot pay, we will tell you whether Chapter 7 is the right option for your situation — honestly, in plain language, at no charge for the consultation.

Chapter 7 eliminates most unsecured debt and is completed in four to six months. The moment your case is filed in the Northern District of Alabama Bankruptcy Court, an automatic stay goes into effect and all collection activity — calls, lawsuits, garnishments, foreclosure — must stop immediately by court order.

We are local. Our office is on Forrest Avenue in downtown Gadsden, and we represent clients from across Etowah County and the surrounding area in federal bankruptcy court. You will not be handed off to a paralegal or a call center. You will work directly with a Gadsden attorney who knows this community.

What Chapter 7 Bankruptcy Can Do for You

If you are a Gadsden or Etowah County resident dealing with wage garnishment, collection lawsuits, or debt you cannot pay, Chapter 7 bankruptcy may be the fastest and most complete solution available. Here is what it does:

Stops wage garnishment immediately upon filing — your employer is notified by court order
Eliminates most unsecured debt — credit cards, medical bills, personal loans, old judgments
Stops collection calls, lawsuits, and creditor harassment
Stops foreclosure or repossession temporarily while you decide what to do
Protects your vehicle and household belongings under Alabama exemptions in most cases
Results in a discharge — a permanent court order that wipes out eligible debts
Most Gadsden and Etowah County clients receive their discharge within 90 to 120 days of filing
Available to qualifying residents throughout Etowah County, including Gadsden, Rainbow City, Attalla, Hokes Bluff, Glencoe, Southside, Sardis City, and Walnut Grove

Put your trust in a gadsden, AL bankruptcy lawyer who puts people first

About Sam Bone

Sam D. Bone

Sam D. Bone Alabama State Bar No. BON035 | Admitted: Northern District of Alabama — Bankruptcy Court

Sam Bone is a Gadsden attorney practicing at Dani V. Bone & Sam D. Bone Attorneys at Law, located on Forrest Avenue in downtown Gadsden. He is admitted to practice in Alabama state courts and the United States District and Bankruptcy Courts for the Northern District of Alabama, and he regularly represents clients from across Etowah County in federal bankruptcy proceedings.

He handles Chapter 7 bankruptcy cases personally — not through paralegals or case mills — and attends every 341 meeting of creditors with his clients. When you hire Bone Law Firm for your Gadsden bankruptcy case, you get Sam Bone — from the first consultation through your discharge.

In 2015, Sam was selected by The National Trial Lawyers as a Top 40 Lawyer Under 40. In 2021, he was selected as a Rising Star by Super Lawyers. Bone Law Firm has earned over 300 Google reviews from clients throughout Gadsden, Etowah County, and North Alabama.

If you are dealing with a wage garnishment, collection lawsuit, or debt you simply cannot manage, call our Gadsden office for a free consultation. There is no obligation and no pressure.

Frequently Asked Questions About Chapter 7 Bankruptcy in Gadsden, Alabama

Will bankruptcy ruin my credit forever? No. Bankruptcy affects your credit in the short term, but most Gadsden and Etowah County clients see meaningful improvement within one to two years of discharge as they rebuild. The unpayable debt dragging your score down gets eliminated. Most clients are in a stronger financial position two to three years after filing than they would have been continuing to struggle with debt they could never pay off.

Will I lose my home? Not necessarily. If you are current on your mortgage and your home equity falls within Alabama's exemption limits, you can generally keep your house. We will walk through your specific situation in your consultation at our Gadsden office.

Will I lose my car? In most cases, if you are current on your car payment, you can reaffirm that loan and keep your vehicle. We will go through your specific situation in the consultation.

Who qualifies for Chapter 7 in Alabama? Chapter 7 uses a means test based on your income compared to the Alabama median income. Most working families in Gadsden and Etowah County qualify. If your income is above the threshold, we run additional calculations. We confirm your eligibility in the consultation before anything is filed — you will know where you stand before you spend a dollar.

What does it cost to file bankruptcy in Gadsden? Attorney fees depend on the complexity of your case. Federal court filing fees are set by the Northern District of Alabama. We give you a clear, complete fee quote in your consultation — no surprises, no hidden charges.

Can I file if I have filed bankruptcy before? Yes, with timing restrictions. You must wait eight years between Chapter 7 filings. We confirm your eligibility in the consultation.

Will my employer find out? Your employer will be notified only if they are currently garnishing your wages — in which case the garnishment stops immediately. Employers are not otherwise notified. Bankruptcy is public record but is not routinely searched by employers in Gadsden or anywhere else.

Do I have to come to your office in Gadsden? Yes for your initial consultation and document signing, but we make the process as straightforward as possible. Our office is conveniently located at 1031 Forrest Avenue in downtown Gadsden, with easy access from Rainbow City, Attalla, Hokes Bluff, Glencoe, and the surrounding Etowah County communities.

CLOSING CALL TO ACTION

You have options. The first step costs you nothing.

Call Bone Law Firm at (256) 547-1005 or fill out the form above to schedule your free bankruptcy consultation with Gadsden bankruptcy attorney Sam Bone. We serve clients in Gadsden, Rainbow City, Attalla, Hokes Bluff, Glencoe, Southside, Sardis City, Walnut Grove, and throughout Etowah County and North Alabama.

1031 Forrest Ave, Gadsden, AL 35901 (256) 547-1005 samueldanibone@gmail.com

"Your fight for justice starts today."