Birmingham Bankruptcy Attorney
If you’re reading this, something has probably already happened — a garnishment started, a foreclosure notice arrived, a car disappeared from the driveway. Bankruptcy is a legal tool built for exactly this moment, and it works better the earlier you use it.
The Law Office of Stephen Bulgarella, LLC has handled hundreds of consumer bankruptcy cases in the Birmingham area. We’ll tell you honestly whether bankruptcy is the right move for you — including when it isn’t.
What Bankruptcy Actually Does
The moment a bankruptcy petition is filed, federal law triggers something called the automatic stay. It’s the reason bankruptcy works, and it’s immediate.
The automatic stay legally requires most creditors to stop:
- Garnishing your wages
- Foreclosing on your home
- Repossessing your vehicle
- Calling you, emailing you, or contacting you at work
- Filing or continuing lawsuits against you
- Draining your bank account
It’s not a request. Creditors who violate the stay can be held liable for doing so.
What bankruptcy does not stop: child support and alimony obligations, most recent tax debts, most student loans, and debts from fraud or willful injury. Criminal restitution is unaffected. Anyone who tells you bankruptcy erases everything is not being straight with you.
Chapter 7 vs. Chapter 13
There are two chapters most individuals use. The right one depends on your income, what you own, and what you’re trying to protect.
The short version: if you’re drowning in unsecured debt and don’t have much to protect, Chapter 7 is usually faster and cheaper. If you’re behind on a house or a car you want to keep, Chapter 13 is usually the tool that saves it.
Most people can’t tell which applies to them from a website, and that’s fine — it’s a fifteen-minute conversation on the phone.
Chapter 7 Bankruptcy
Chapter 7 wipes out qualifying unsecured debt — credit cards, medical bills, personal loans, most old judgments — and it’s typically done within a few months of filing.
The fear that stops most people from filing Chapter 7 is losing their home or car. In practice, most Chapter 7 filers keep everything they own. Alabama law provides exemptions that protect equity in your home, your household goods, and personal property, and Alabama filers must use the state exemptions rather than the federal ones. Married couples filing together can generally double them.
The exemption amounts are adjusted periodically under Alabama law, and there’s an enhanced homestead exemption available to filers who are 62 or older or who have a qualifying disability. Because the figures change, we don’t post them here — call and we’ll tell you the current numbers and, more usefully, whether they cover what you’re worried about.
Chapter 13 Bankruptcy
Chapter 13 is a repayment plan, usually three to five years, supervised by the bankruptcy court. You make one monthly payment to a trustee, who distributes it to your creditors.
It's the right tool when:
- You're behind on a mortgage and want to keep the house. Chapter 13 lets you cure the arrears over the life of the plan while staying current going forward.
- You're behind on a car loan and want to keep the vehicle.
- Your income is too high to pass the Chapter 7 means test.
- You have equity you'd lose in a Chapter 7.
At the end of a successfully completed plan, remaining qualifying unsecured debt is discharged.
Urgent Situations
Stopping a Wage Garnishment
In Alabama, a creditor who has obtained a court judgment against you can garnish your wages. Under Alabama Code § 6-10-7, 75% of your wages are exempt from garnishment for consumer debts — which means a creditor can take up to a quarter of what you earn, every pay period, until the judgment is satisfied.
Filing bankruptcy triggers the automatic stay, which stops most wage garnishments. The practical timeline is usually days, not weeks — the court issues notice, your employer receives it, and the deductions stop.
In some circumstances, money garnished shortly before filing may be recoverable. That depends on timing and amounts, so if a garnishment has already started, call sooner rather than later.
Stopping a Foreclosure
Alabama allows non-judicial foreclosure, which means a lender generally doesn’t have to sue you first. That makes the timeline shorter than in many states, and it’s why foreclosure notices in Alabama catch people off guard.
Filing a Chapter 13 case before the foreclosure sale occurs stops the sale and lets you cure the past-due amount through your plan while resuming regular payments.
The deadline is the sale itself. Once the property is sold, options narrow sharply. If you have a sale date, call today — not next week.
Stopping a Vehicle Repossession
Alabama lenders can generally repossess a vehicle without a court order once you’re in default. There’s often no warning.
If your car hasn’t been taken yet, filing bankruptcy stops the repossession. If it has already been repossessed, whether you can get it back depends heavily on how much time has passed and whether the lender has sold it. This is genuinely a matter of days — if your car was just taken, call now.
Chapter 13 may also allow you to keep the vehicle and restructure the loan.
Where Your Case Will Be Filed
Bankruptcy cases for Jefferson County, Blount County, and Shelby County are filed in the Southern Division of the U.S. Bankruptcy Court for the Northern District of Alabama, which sits in Birmingham at 1800 5th Avenue North.
But you probably won’t set foot in that building. Meetings of creditors in this district have been conducted by video since 2020 — you’ll receive a link with your case paperwork and attend from home. It’s not a trial, there’s no judge, and it typically lasts a few minutes. Stephen is on the call with you.
We also handle consultations, document gathering, and signatures remotely for most clients. If you’d rather meet in person, our office is downtown at 420 20th Street North — but it’s your preference, not a requirement.
Why Work With Stephen Bulgarella
Stephen began his career filing hundreds of bankruptcy cases for individuals and families. Then he spent five years representing the other side — major banks and mortgage lenders including Fannie Mae, Freddie Mac, Wells Fargo, U.S. Bank, PennyMac, and Regions Bank — in bankruptcy and foreclosure matters in federal courts across Alabama.
In 2021 he opened this firm to go back to representing consumers.
That background is not a résumé line. It’s practical: when a creditor’s attorney files an objection in your case, Stephen has filed that objection himself. He knows which arguments those firms actually pursue and which ones they raise to see whether anyone pushes back.
He’s a graduate of Cumberland School of Law, where he was named a Scholar of Merit for his work in bankruptcy and consumer law, and he has practiced in all three of Alabama’s federal bankruptcy districts.
Frequently Asked Questions
Will I lose my house if I file bankruptcy in Alabama?
Most people don’t. Alabama’s homestead exemption protects a set amount of equity in your primary residence, and it’s doubled for married couples filing jointly. If your equity exceeds the exemption, Chapter 13 often lets you keep the home anyway by paying the non-exempt value through your plan. The exemption amount is adjusted periodically, so call for the current figure.
How fast can bankruptcy stop a garnishment?
The automatic stay takes effect the instant your petition is filed. In practice the garnishment stops once your employer’s payroll department receives notice, which is usually a matter of days.
Do I have to go to court?
For most consumer cases, you’ll attend one meeting of creditors — a short, informal meeting with the trustee, not a hearing before a judge. It’s conducted by video, so you can attend from home. Chapter 13 cases also involve a plan confirmation, which your attorney typically handles.
Will bankruptcy ruin my credit forever?
No. A Chapter 7 filing stays on your credit report for ten years and a Chapter 13 for seven, but the practical effect fades much sooner than that. Most people’s scores are already badly damaged by missed payments and collections before they file, and many see improvement within a year or two of discharge because the underlying debt is gone.
Can I file bankruptcy without an attorney?
Legally, yes. Practically, it’s risky. Errors in exemption claims, means testing, or scheduling of assets can cost you property or get the case dismissed — and a dismissed case can leave you worse off than when you started.
How soon after I call can we file?
It depends on how quickly we can gather your documents. If something is genuinely urgent — a foreclosure sale on the calendar, a car that was just repossessed — say so when you call and we’ll tell you honestly what’s possible.
Can I keep a credit card out of my bankruptcy?
No. Bankruptcy requires you to list all debts and all creditors. You can’t pick and choose.
How much does it cost?
Two costs: the court’s filing fee, set by federal law, and attorney’s fees. This office works hard to keep its fees reasonable, and we accept payment plans. In Chapter 13 cases, the attorney’s fee can typically be paid through your plan over its three-to-five-year life rather than upfront — which is often what makes filing possible for someone who’s already stretched. The consultation itself is free, so you can find out exactly what your case would cost without paying anything to ask.
Will I actually get to talk to the attorney?
Yes. At this firm, all work is done by an attorney and phone calls are answered by an attorney. Nothing is handed off to non-attorney staff.