If you are considering bankruptcy, research bankruptcy laws in Alabama before you proceed with the decision so you know what to expect from the process and what exemptions you are entitled to.

When starting a business, no one thinks they will fail; however, things happen and there may come a time when filing for bankruptcy becomes the best course of action for yourself and your business. Before filing for bankruptcy, keep in mind the following:

1. Have a plan for life after Alabama bankruptcy. Help yourself by looking at your current situation as a second chance at your life and business.

2. Have a good understanding of bankruptcy laws in Alabama and how they can affect your life and your business.

3. Understand what brought you to this point. Learn from the situation so you can avoid bankruptcy a second time.

Action Steps
The best contacts and resources to help you get it done

Determine the exemptions you have under Alabama bankruptcy law

Take the time to learn about the exemptions you have available to you under Alabama bankruptcy laws. Exemptions will determine how much of your property and assets you can keep. The exemptions allotted in Alabama cover your home, personal property and even your insurance and pension.

I recommend: The Bankruptcy Site offers a detailed explanation of the exemptions available under Alabama bankruptcy law and how they apply in various scenarios. Bankruptcy Information has a chart of all the exemptions that are available under Alabama bankruptcy laws.

Review the bankruptcy law in AL

The passage of the 2005 bankruptcy laws changed the bankruptcy process drastically. There's a new credit counseling provision, a means test and greater difficulty in charging off your debts. You should have an understanding of what the new process involves so you can make an already difficult decision a little easier.

I recommend: Lawyers.com gives a detailed overview of the bankruptcy process in Alabama. AlabamaBankruptcy.com gives step by step details on how the bankruptcy process in Alabama works.

Hire a good Alabama bankruptcy attorney when filing for bankruptcy

A good lawyer is absolutely necessary when filing for bankruptcy in Alabama. The more assets you have, the more complicated your filing may be and the more complicated your Alabama bankruptcy. Finding experienced Alabama bankruptcy lawyers should be a top priority once the decision is made to file for bankruptcy. There are plenty of quality Alabama bankruptcy law firms, so help yourself by hiring a good attorney.

I recommend: BankruptcyLawyerAlabama.com has a database of lawyers that can be searched by zip code as well as wealth of information regarding the bankruptcy laws in Alabama. Bond and Bates, P.C. is a debt relief agency that also offers Alabama bankruptcy assistance.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Review your assets and debt before filing for bankruptcy with your Alabama bankruptcy attorneys. Property that you can't claim as an exemption may be sold to pay off to your creditors. Claim all property that you are eligible to keep as exempt or the exemptions will not be given.