Alabama Bankruptcy Attorney

Bankruptcy Law - Chapter 7, 11 and 13

Mobile, Al / Gulf Coast   


Filing Bankruptcy

     Filing bankruptcy can only be done in federal court, and the individual states are not authorized to enact their own bankruptcy laws. The laws are thus uniform throughout the United States, with certain variations allowed to the individual states relating to what assets an individual debtor is allowed to keep ("exemptions"). There are also variations from state to state with respect to the effect of bankruptcy, because the individual states have different laws respecting the nature and extent of a debtor's property interests and other matters.

     There are 5 different types of bankruptcy:

  • Chapter 7 - Liquidation or "straight" bankruptcy
  • Chapter 11 - Business reorganization
  • Chapter 13 - Individual debt adjustment
  • Chapter 9 - Adjustment of debts of a municipality
  • Chapter 12 - Adjustment of debts of a family farmer

     Chapters 7, 11. and 13 are the most common form of bankruptcy. 

     Under the Bankruptcy Code, individuals, partnerships, and corporations are the only "persons" permitted to file bankruptcy.Filing BankruptcyInsurance companies, banks, savings and loan associations, and credit unions are specifically prohibited from filing, and railroads are eligible only for Chapter 11 relief. To be eligible for bankruptcy filing, a person must reside or have a domicile, a place of business, or property in the United States.  Chapter 13 is limited to individuals who owe less than $269,250 in unsecured debts and $807,750 in secured debts. A secured debt is one in which the creditor has taken some form of collateral (property) to "secure" the debtor's promise to pay. Common types of secured debts are home mortgages and car payments. Unsecured debts include any debt which is not secured by property, and include most credit card and department store bills, student loans, personal loans, and other such debts.

Contacting Us      For more information concerning corporate bankruptcy or other related legal matters in the State of Alabama, Attorney Kathryn McCord is available for consultation. To set up an appointment, please feel free to call 251-555-1212 or email her office at

Kathryn Jeanne McCord                               315 5th Ave                               Mobile, AL 36611
Tel: 251-555-1212                                           Fax: 251-555-1214                                           Email:

The following language is required pursuant to Rule 7.2, Alabama Rules of Professional Conduct.
No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers.  This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

Bankruptcy Law 
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