Many people who come to us for advice about filing for bankruptcy or Debtors Court want to know what will happen to their retirement accounts when they file. They have worked hard to save as much as possible, and they do not want to give up their savings.  Fortunately, retirement accounts are not at risk in the vast majority of Chapter 7 and Chapter 13 (Debtors Court) cases. While there are exceptions for certain types of accounts, these exceptions do not apply to most people. 

One of the main benefits of filing for bankruptcy is having your debts discharged. Once you have debts discharged through the bankruptcy process (whether under Chapter 7 or Chapter 13 (Debtors Court)), you are no longer responsible for those debts. Your former creditors cannot require you to pay the debts, and those creditors cannot pursue collection activities. Many individuals (and couples) who file for bankruptcy in Alabama will be able to have all of their debts discharged. However, there are some exceptions to the dischargeability

In Birmingham, Alabama, Chapter 13 bankruptcy is often referred to as Debtors Court. Debtors Court is an option for individuals and couples who cannot afford to pay all of their bills month-to-month, but who can afford to make smaller payments and gradually pay down their debts over time. As a result, Debtors Court is a good option for Alabama residents who have some source of income and either do not qualify to eliminate their debts under Chapter 7 straight bankruptcy or prefer to minimize the

When Jefferson County, Alabama, filed Chapter 9 bankruptcy in November 9, 2011, it was the largest municipal bankruptcy case in history. That is no longer the case since the city of Detroit, Michigan recently filed its own Chapter 9 bankruptcy case. Jefferson County had debts of approximately $4 billion while Detroit has debts of approximately $18 billion. The purpose of Chapter 9 is to give cities and counties the ability to reorganize their debts. Jefferson County has submitted a plan to complete its bankruptcy case.