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Alabama Bankruptcy Questions & Answers
4 Answers | Asked in Bankruptcy for Alabama on
Q: I did not read my bankruptcy petition before I signed it the lawyer made several errors

Like putting my wifes debts on the petition . And did not including 2 large withdrawals 8000 and 3000 that my wife took out of our joint account to buy a vehicle

W. J. Winterstein Jr.
W. J. Winterstein Jr. answered on Jun 30, 2021

NEVER sign a document before you read through it.

It's surprising that a bankruptcy lawyer would enable you to sign without first reading the documents. One of the questions normally asked by any bankruptcy trustee at the 341 meeting is whether the signature on the Petition is...
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2 Answers | Asked in Bankruptcy for Alabama on
Q: Can I file for bankruptcy if I get by personal checks. I work in a private home.
Kevin M Ryan
Kevin M Ryan answered on Feb 24, 2021

Yes. Receiving income via cash, private income, Bitcoin, or any other means can be disclosed to the Court to comply with 11 USC 521 / 11 USC 707 via an Affidavit prepared by your Attorney. The value of the compensation has to be disclosed to the Court. It must be included on the Means Test... Read more »

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2 Answers | Asked in Bankruptcy and Tax Law for Alabama on
Q: Do I have to give the trustee my tax refund in chapter 13 bankruptcy? Located in Alabama.

Do I have to give the trustee my tax refund in chapter 13 bankruptcy? I called my attorney and spoke to a Lady in the office and she said that the trustee doesn’t take tax refunds anymore. Wasn’t able to speak with my attorney personally.

Lloyd M. Nolan
Lloyd M. Nolan answered on Feb 22, 2021

I do not practice in Alabama, so that question would be dependent on the local bankruptcy rules that govern your case. In the Eastern District of Missouri, where I practice, the local rules require that debtors turn over their tax refunds (over a specific allowable amount) to the Chapter 13... Read more »

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4 Answers | Asked in Bankruptcy for Alabama on
Q: Will getting new car insurance affect my bankruptcy?

I’m in a chapter 13 bankruptcy, and just want to know if I need to report new car insurance? I’m a year into my payment plan. Our insurance is outrageous and want to find a new company. Also I know most companies do a soft credit pull, will that affect anything? I’m in middle district... Read more »

David Luther Woodward
David Luther Woodward answered on Feb 20, 2021

Find a more reasonable insurance carrier. I have changed twice in the past two years for just that reason (I don't live that far from you) and they are competitive. Be sure you have adequate liability limits and equivalent uninsured motorist coverage. It's always the other guy who has... Read more »

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2 Answers | Asked in Bankruptcy for Alabama on
Q: Alabama--- I am considering terminating the relationship with my current lawyer and retaining a new one in my active 13

What are the steps for this? I have heard the current lawyer has to file a motion to have this handled, that I can not terminate without this. I hired him, right????

Timothy Denison
Timothy Denison answered on Feb 6, 2021

Notify your current lawyer that you are terminating the relationship. Have your current lawyer then file an entry of appearance or motion to substitute. Problem solved.

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2 Answers | Asked in Bankruptcy for Alabama on
Q: Financing a car during chapter 13!

We recently were advised not to get a car through bankruptcy by our attorney and just to pay cash, but we can’t find anything worth the money. Are we aloud to have someone finance a car for us and we make the payments? We’re in the Middle District in Alabama.

W. J. Winterstein Jr.
W. J. Winterstein Jr. answered on Feb 5, 2021

Once your Ch. 13 plan is confirmed, so long as you make the plan payments to the trustee, and direct payments to your mortgage lender and perhaps your car loan, the remainder of your income is yours to do as you like. So yes, if someone is willing to risk financing a car purchase on your promise to... Read more »

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2 Answers | Asked in Bankruptcy for Alabama on
Q: I’m currently in chapter 13, my husband and I tried to get a car through our bankruptcy and got denied. HELP!

My car is on its last leg, and we don’t quite have enough yet to pay for something decent with cash. Can we go to a buy here pay here that offers no credit checks? All they ask for is ID, proof of income and insure and down payment. Would we get in trouble and get kicked out of bankruptcy? Or are... Read more »

Kevin M Ryan
Kevin M Ryan answered on Feb 5, 2021

The answer to this question could vary depending on what bankruptcy district your case is pending in. I practice in the Southern District of Alabama, which has a very reasonable and workable approach to getting Debtors in a position to replace or purchase a vehicle while in Chapter 13. The... Read more »

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3 Answers | Asked in Bankruptcy for Alabama on
Q: I'm in the process of buying a small house with help of dad. Can I file ch. 7 and keep home & get rid of other debt
W. J. Winterstein Jr.
W. J. Winterstein Jr. answered on Jan 18, 2021

The bankruptcy court and Ch. 7 Trustee assigned to your case probably won't be interested in your new house, unless there is substantial equity value in it (you don't say how much your father will kick in, but routinely, Mortgage lenders want buyers to pony up twenty per cent of the... Read more »

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2 Answers | Asked in Bankruptcy and Tax Law for Alabama on
Q: Currently in chapter 13 bankruptcy in the middle district of Alabama, I know we have to report our taxes yearly, but do

They take our tax refund entirely? Or do we get to keep it?

W. J. Winterstein Jr.
W. J. Winterstein Jr. answered on Jan 13, 2021

In a Chapter 13 bankruptcy, while all of your assets, including any expected tax refund, must be disclosed in the Bankruptcy Schedules that must be filed in the case, a debtor retains all his property, unless he chooses to surrender it to a secured creditor, or sell it, as part of the proposed... Read more »

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1 Answer | Asked in Bankruptcy, Consumer Law and Foreclosure for Alabama on
Q: How can I stop forclosure if the bank has charged me over state limit on interest?

I borrowed 48,000 16 yrs ago the 1st 6 yrs was 11.25% after modification it was still 8.9 alabama max is 8. I still owe 41,000 and I've already pd approx 83,000 and they still want to forclose what are my options?

Timothy Denison
Timothy Denison answered on Dec 18, 2020

Plead the usury and fraud in the foreclosure action against you as affirmative defenses and file a counterclaim for overpayment.

2 Answers | Asked in Bankruptcy for Alabama on
Q: I am hoping to convert from.a 13 to a 7. Since my 13, my 19 year old daughter has been working, whom still lives

At home with me. Will the courts consider her income as part of mine? Even though i do not use her money as contribution to my household?

Kevin M Ryan
Kevin M Ryan answered on Dec 1, 2020

If you schedule your sole income and your sole expenses on Schedules I and J, your daughter's income from her employment should not be factored in. The corollary to that assumption is that your daughter earns just enough to pay for things like her vehicle, insurance, food ( at school or her... Read more »

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1 Answer | Asked in Bankruptcy for Alabama on
Q: In chapter 13 repayment plan. Can it be paid off early?
Timothy Denison
Timothy Denison answered on Aug 31, 2020

Yes indeed.

1 Answer | Asked in Bankruptcy for Alabama on
Q: Can the IRS take my tax refund during a Chapter 7?

I owe taxes on 2 years prior to filing chapter 7, and I filed taxes based on income I received prior to filing. No one has lifted the automatic stay, and my case is not yet discharged, but the IRS took my refund, anyway. When i called, they said their system wasnt updated with my BK, but now it... Read more »

Timothy Denison
Timothy Denison answered on Mar 20, 2020

Yes, they can.

1 Answer | Asked in Bankruptcy, Civil Litigation and Lemon Law for Alabama on
Q: I purchased a car 5 months ago and was told that the car is now being repossessed by lein holder that I was unaware of

And also included in a bankruptcy filing but the two involved in selling the car to me or trying to get me to surrender the car to them or else I am in trouble with the law

Timothy Denison
Timothy Denison answered on Mar 15, 2020

If you have title, it is someone else’s problem.

1 Answer | Asked in Bankruptcy and Tax Law for Alabama on
Q: I filed Chapter 13 Bankruptcy in August 2019, in Mont, Al. Can I keep my fed tax refund?
Timothy Denison
Timothy Denison answered on Feb 29, 2020

If you exempted the tax return on your schedules, you probably can keep it. If you did not, you may have to surrender a portion of it.

2 Answers | Asked in Bankruptcy for Alabama on
Q: I filed for Chapter 7 bankruptcy in 2016 and was dismissed in August Currently in 13 can it be converted or reduced

I filed for Chapter 7 in 2016 and dismissed in August of that same year. I am currently in Chapter 13 with 100 percent repayment. I have started nursing school and my work hours will be greatly reduced. Can I convert to a Chapter 7 or get my payments reduced?

Kevin M Ryan
Kevin M Ryan answered on Feb 1, 2020

You must first determine if you received a Discharge Order in the prior Chapter 7 case. If you did not receive a Discharge Order in that case and it was dismissed without a Discharge Order, then you may be able to convert your Ch 13 to Chapter 7. You will need to sit down with your attorney and... Read more »

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2 Answers | Asked in Bankruptcy for Alabama on
Q: My husband and I are filing chapter 13, will we be able to keep our tax refund? We are in Alabama, and have 4 children.
Timothy Denison
Timothy Denison answered on Jan 28, 2020

You can protect some or all of your tax refund, depending on your federal or state exemptions.

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1 Answer | Asked in Bankruptcy and Consumer Law for Alabama on
Q: I just completed a Chapter 13 bankruptcy 5 year 100% payback plan and received a discharge.

In 2014 I co-signed a student loan application for my stepson. His mother and I got divorced later that year. All during the plan this “Sallie Mae Bank Inc” loan showed as being in a “Closed” status on my 3 credit reports. Now that I have completed the plan and received a discharge the... Read more »

Timothy Denison
Timothy Denison answered on Jan 20, 2020

You can contact the credit bureaus regarding this but the bottom line is you are still obligated on the note. Was it not dealt with in your divorce?

2 Answers | Asked in Bankruptcy, Contracts and Real Estate Law for Alabama on
Q: commercial in AL with owner finance. Buyer stopped paying after 2 years and filed for bankruptcy. What can the seller do

Commercial property in ALABAMA was sold in 2017 with owner financing with 30% down and 7 years of monthly payments at 6%. The contract was recorded in court house as a lien. The buyer (LLC) with personal guarantee paid on time for 2 years and now filed for bankruptcy (both LLC and personal).... Read more »

Timothy Denison
Timothy Denison answered on Nov 24, 2019

You can take the property back and sell it to someone else. You have no recourse against the bankrupt buyer unless the bankruptcy isn’t discharged.

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