Home › FAQs

Bankruptcy FAQs

These answers are general information. Bankruptcy results depend on complete facts, current law and court procedure.

What is the difference between Chapter 7 and Chapter 13?

Chapter 7 generally involves liquidation rules and no repayment plan, while Chapter 13 allows an eligible individual with regular income to propose a three-to-five-year repayment plan. Eligibility, property, income and goals determine which chapter deserves consideration. Compare Chapter 7 and Chapter 13.

Does filing bankruptcy stop collection activity?

Filing a petition generally creates an automatic stay against many collection actions, but exceptions and limitations apply. Prior dismissed cases can affect the stay. A consultation request or unfinished petition does not create a stay.

Can bankruptcy stop a foreclosure?

Chapter 13 may be used to address mortgage arrears if the case is filed before the foreclosure sale and the filer can meet ongoing obligations and plan requirements. Timing and exceptions require urgent review.

Can I keep my home and vehicle?

Possibly. The answer depends on equity, exemptions, liens, payment status, chapter and the treatment selected for secured debt. Do not assume that filing automatically protects or surrenders property.

Are all debts discharged?

No. Domestic-support obligations, certain taxes and other categories can survive. Student-loan discharge generally requires additional litigation and a demanding legal showing. Valid liens may remain even if personal liability is discharged. See Debt Discharge Analysis.

Must both spouses file?

Not always. A married person may file individually, but household and non-filing-spouse information can still be required. Joint debts, property ownership and income should be reviewed.

What are credit counseling and debtor education?

Individual filers generally must complete approved credit counseling before filing and a separate debtor-education course after filing to receive a discharge, subject to limited exceptions. Use an approved provider and preserve the certificates.

What is the meeting of creditors?

The Section 341 meeting is conducted by the trustee or bankruptcy administrator, not the judge. Debtors answer questions under oath about the petition, finances and property. Required attendance and current format should be confirmed for the case.

How much does bankruptcy cost?

Costs depend on chapter and complexity. Court fees and course costs are separate from attorney fees. Review Bankruptcy Fees & Cost Estimates.

Where are Madison County cases handled?

Bankruptcy is federal. The U.S. Bankruptcy Court for the Northern District of Alabama maintains a Northern Division presence in Huntsville. Venue and current appearance instructions should be confirmed for each case.

How do I begin?

Gather records and request a case evaluation. If a deadline is pending, state the exact date when you call (256) 221-3387.

Official resources

U.S. Courts Bankruptcy Basics | Credit Counseling and Debtor Education | Northern District of Alabama Bankruptcy Court

Attorney advertising. This website provides general information, not legal advice. Contacting Huntsville Bankruptcy Lawyer does not create an attorney-client relationship. Representation begins only after conflicts review and a written engagement agreement. No result is promised.