Frequently Asked Questions

Straight answers to the questions we hear most from clients in Birmingham, Bessemer, Gardendale, Blount County, and across central Alabama.

These are general answers about Alabama law. They aren’t legal advice about your situation, and the details of your case matter. Call (205) 898-1234 and we’ll give you a real answer.

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Stopping Wage Garnishment

Yes, in most cases. Filing a bankruptcy petition triggers the automatic stay under federal law, which legally requires most creditors to stop collection activity — including wage garnishment — immediately. The main exceptions are child support, alimony, and certain tax obligations, which generally continue.

The automatic stay is effective the moment the petition is filed. The practical delay is administrative: the court issues notice, the creditor notifies your employer, and your employer’s payroll department stops the deduction. That’s usually a matter of days.

Sometimes. Money taken shortly before filing may be recoverable, depending on how much was taken and when. There are specific rules and thresholds involved, and the timing window is short — which is why it’s worth calling as soon as a garnishment begins rather than waiting to see how bad it gets.

Sometimes. Depending on the circumstances, options can include claiming exemptions you’re entitled to, challenging the underlying judgment if it was improperly obtained, or negotiating directly with the creditor. Whether any of these apply depends on your specific situation. Bankruptcy is not always the answer, and we’ll tell you if it isn’t yours.

Under Alabama Code § 6-10-7, 75% of your wages are exempt from garnishment for consumer debts — meaning a creditor with a judgment can generally garnish up to 25% of your earnings each pay period until the judgment is satisfied. Different rules apply to child support and federal debts.

Stopping Foreclosure

Yes, if it’s filed before the sale takes place. The automatic stay halts the foreclosure, and a Chapter 13 plan lets you cure the past-due mortgage amount over the life of the plan — typically three to five years — while resuming your regular monthly payments going forward.

The petition must be filed before the sale occurs. Cases have been filed the morning of a scheduled sale and stopped it. That said, filing under that kind of pressure means less time to prepare a case properly, which raises the risk of problems later. If you have a sale date, call now — not the week of.

It depends on the chapter and on whether you can sustain payments. Chapter 13 is designed to let you keep the home permanently: you catch up the arrears through your plan and stay current going forward. Chapter 7 stops a foreclosure temporarily but doesn’t provide a mechanism to cure past-due payments, so if you’re behind on a home you want to keep, Chapter 13 is usually the right tool.

Typically you resume making regular monthly mortgage payments while the past-due amount is paid off through your plan payment. The exact structure varies by case and by how your plan is written.

Faster than most people expect. Alabama permits non-judicial foreclosure, meaning a lender generally doesn’t have to file a lawsuit and win before selling the property. That removes months of process that exist in other states. If you’ve received a notice, treat it as urgent.

Stopping Vehicle Repossession

Yes. Filing triggers the automatic stay, which requires the lender to stop repossession efforts. If you want to keep the vehicle long-term, Chapter 13 lets you cure the past-due payments through your plan.

Possibly, but this is genuinely time-sensitive. Whether recovery is possible depends largely on how recently it happened and whether the lender has already sold the vehicle at auction. Once it’s sold, the options narrow dramatically. If your car was taken in the last few days, call today.

In some Chapter 13 cases, yes. Depending on when you bought the vehicle and what it’s currently worth relative to the loan balance, it may be possible to restructure the loan through your plan. There are specific timing requirements that determine whether this is available, so it comes down to the facts of your loan.

Generally yes. Alabama permits self-help repossession, meaning that once you’re in default, a lender can typically take the vehicle without a court order and without advance notice, as long as they don’t breach the peace in doing so.

Chapter 7 Bankruptcy

Chapter 7 discharges qualifying unsecured debts — credit cards, medical bills, personal loans — usually within a few months of filing. Eligibility is determined by a means test that compares your household income to Alabama’s median income for your household size. If you’re below the median, you generally qualify. Above it, a more detailed calculation applies.

Chapter 7 typically discharges credit card debt, medical bills, personal loans, older judgments, and deficiency balances after a repossession or foreclosure. It generally does not discharge child support, alimony, most recent tax debts, most student loans, criminal fines and restitution, or debts arising from fraud or willful injury.

Most people don’t lose either. Alabama law provides exemptions that protect equity in your home and personal property, and Alabama requires filers to use the state exemptions rather than the federal set. Married couples filing jointly can generally double them. Exemption amounts adjust periodically under Alabama law, and there’s an enhanced homestead exemption for filers 62 or older and those with qualifying disabilities. Because the figures change, call for the current numbers.

Typically a few months from filing to discharge for a straightforward case, assuming no complications and no objections.

You’ll attend a meeting of creditors — often called a 341 meeting — but it’s held by video, not in a courtroom. It’s not a trial, there’s no judge, and for most consumer cases it lasts only a few minutes. The trustee asks questions about your paperwork. Stephen is on the call with you.

Yes, but there are waiting periods between discharges. The specific period depends on which chapter you filed previously and which you’re filing now.

Chapter 13 Bankruptcy

Chapter 7 discharges debt quickly and may require surrendering non-exempt property. Chapter 13 is a repayment plan — you make one monthly payment to a trustee for three to five years, and qualifying remaining debt is discharged at the end. Chapter 13 is the tool for people who are behind on a house or car they want to keep, or whose income is too high for Chapter 7.

Three or five years, depending on your income relative to Alabama’s median.

Possibly. Chapter 13 requires regular income, which doesn’t have to be wages. Social Security, disability, pension, rental income, and self-employment income can all qualify. What matters is whether the income is stable enough to fund a plan.

In some cases. Whether the loan balance can be reduced to the vehicle’s value depends on when you purchased the vehicle relative to your filing date. There’s a specific look-back period that governs this.

Tell your attorney immediately rather than waiting. Depending on the circumstances, a plan can sometimes be modified, or a temporary hardship can be addressed. What causes real damage is silence — missed payments without communication can lead to dismissal.

Cost & Process

Two separate costs: the court’s filing fee, which is set by federal law and adjusted periodically, and attorney’s fees. This office works hard to keep its fees reasonable and we accept payment plans. The consultation is free, so you can find out exactly what your case would cost without paying anything to ask.

The attorney. At this firm all work is done by an attorney and phone calls are answered by an attorney — nothing is passed off to non-attorney staff. It’s a small firm, and that’s deliberate.

Yes. We accept payment plans when necessary. In Chapter 13 cases specifically, the attorney’s fee is typically paid through your court-approved plan over three to five years rather than upfront — which is often what makes filing possible at all for someone who’s already behind.

Yes. There’s no charge to call, describe your situation, and find out what your options are. If bankruptcy isn’t the right move for you, we’ll tell you that too.

Generally: recent pay stubs, the last two years of tax returns, a list of your debts and creditors, bank statements, and any court papers you’ve received — garnishment notices, foreclosure notices, lawsuit filings. Don’t let a missing document stop you from calling. We can work with what you have and gather the rest.

No. A Chapter 7 filing remains on your credit report for ten years and a Chapter 13 for seven, but the practical impact diminishes well before that. Most people who file already have significant damage from missed payments and collections. Many see their scores begin recovering within a year or two after discharge, because the underlying debt is gone and they can start rebuilding.

It depends on how quickly documents come together. If there’s a hard deadline — a scheduled foreclosure sale, an active garnishment — say so on the first call and we’ll tell you honestly what’s realistic.

Yes. Bankruptcy requires disclosure of all debts, all creditors, and all assets. You cannot leave out a credit card you’d like to keep using, and omissions can jeopardize your discharge.

Local & Court Questions

Cases from Jefferson, Blount, and Shelby Counties are filed in the Southern Division of the U.S. Bankruptcy Court for the Northern District of Alabama, located in Birmingham at 1800 5th Avenue North.

Yes. Blount and Shelby County cases are filed in the same Birmingham division as Jefferson County cases, so there’s no practical difference in how they’re handled.

Stephen is licensed throughout Alabama and has practiced in all three of the state’s federal bankruptcy districts — Northern, Middle, and Southern. Most of our clients are in the Birmingham metro and north-central Alabama, but call and we’ll tell you honestly whether we’re the right firm for where you live.

Most of it is remote. Meetings of creditors in the Northern District of Alabama have been conducted by video since 2020 — you’ll receive a link with your case paperwork and attend from home. Consultations, document gathering, and signatures can also be handled by phone, email, and video, which is how this office prefers to work. In-person meetings are available at our downtown Birmingham office for anyone who’d rather sit down face to face.

It makes less difference than you’d think. Your case is filed in the same Birmingham court regardless of who represents you, and since the meeting of creditors is by video, neither you nor your attorney is traveling. What actually matters is how well your attorney knows that court.

Yes. Bessemer is part of Jefferson County, and bankruptcy cases from Bessemer are filed in the Birmingham division. See our Bessemer page.

Personal Injury

Get medical attention, even if you feel fine — adrenaline hides injuries and a treatment gap will be used against you later. Photograph the scene if you can. Get witness contact information. Report the accident to your own insurer. Be very careful about giving a recorded statement to the other driver’s insurance company.

Generally two years from the date of injury, under Alabama Code § 6-2-38. Claims against government entities often have much shorter notice deadlines.

It reflects medical expenses, lost income, the severity and permanence of the injury, pain and suffering, available insurance coverage, and — critically in Alabama — how clean the liability picture is. Alabama’s contributory negligence rule means that even a small share of fault assigned to you can eliminate recovery entirely.

No. We handle injury cases on contingency — our fee comes from the recovery, and if there’s no recovery there’s no attorney’s fee.

Alabama is one of only a few states that still follows pure contributory negligence. If you’re found even 1% at fault, you may recover nothing. Most states reduce your recovery proportionally instead. This is why insurance adjusters in Alabama work so hard to get injured people to admit some fault, and why you should talk to an attorney before giving a statement.

Wills, Trusts & Probate

Usually yes — especially if you have minor children. A will names a guardian for your children, chooses who administers your estate, and prevents your family from having to guess at your wishes. It’s about decisions, not just dollars.

The estate passes under Alabama’s intestacy statutes, starting at Alabama Code § 43-8-40. A court appoints an administrator and property is distributed in a fixed statutory order based on which relatives survive. A surviving spouse does not automatically receive everything.

A will takes effect at death and goes through probate. A trust takes effect when created and, depending on type, can pass assets outside probate. Trusts offer more control and privacy but cost more and require ongoing maintenance. Many families are well served by a will alone.

It depends heavily on the size and complexity of the estate, whether anyone contests the will, and whether creditors file claims. Simple uncontested estates move much faster than estates involving real property or family disputes.

Jefferson County has two: Birmingham and Bessemer. Because of the Bessemer Cutoff, an estate is filed in the division where the decedent lived. Filing in the wrong one causes delay.

What Our Clients Say About Getting Answers

Kiara C.
June 2026
Choosing Stephen to handle my case was one of the best decisions I could've made. He has been so easy to work with. His care, professionalism, and expertise have shone through as he's thoroughly and knowledgeably answered all of my questions. He has been so prompt and responsive — even when I just needed a pep talk to get through the next steps of my case. If you're weighing your options regarding legal representation, look no further! Stephen has got you covered.
Angela H.
April 2026
Great person to work with very helpful. This was my first time filing bankruptcy sit down, went over everything with me. Make sure I understand the process very patient answered every question that I had. I am so grateful that I met him.
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Still Have Questions?

Call (205) 898-1234. Most of these questions have a real answer once we know your specific facts — and that conversation is usually shorter than you’d expect. You’ll be talking to an attorney, not an intake service.

Related Pages

Bankruptcy

Personal Injury

Wills, Trusts & Probate

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