Bankruptcy Information

Authored By: Legal Services Alabama


I lost everything because of a disaster. Will it help me to file bankruptcy?

  • Bankruptcy can help when you have property to protect and a lot of debt that is past-due.
  • Before filing bankruptcy, look hard at other ways to solve your problems.
    • Call your creditors to see if they are giving extra time to people affected by the disaster.
    • Look into consumer credit counseling.
    • You may be able to work out a repayment agreement or file a claim of exemption.
    • Read the information in the Bankruptcy section of this website.
  • Try to wait until you have income coming in before filing bankruptcy.
  • If you have enough new income, you can take advantage of the fresh start bankruptcy gives you. If you don't have enough new income, you get out of one hole just to fall into another.
  • You may need to file bankruptcy if you have to stop a lawsuit, garnishment, foreclosure, eviction, or revocation of a driver's license.

Reviewed May 2014 offers legal information, not legal advice. This website provides information on your rights and options. However, the site does not apply the law to your personal facts. For legal advice, you should call a lawyer. To apply for free legal services in Alabama, call the Legal Services Alabama office that is closest to where you live OR call toll-free 1-866-456-4995. You can also apply online HERE.

Last Review and Update: May 12, 2014
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