How To File Bankruptcy for Free in Alabama: Complete Guide

Filing for Chapter 7 bankruptcy in Alabama can help you hit reset if debt is weighing you down. You can wipe out credit cards, medical bills, payday loans, and old utility bills.

Many people in Alabama file on their own without hiring a lawyer.

This guide walks you through the process step by step. You’ll learn how to gather your financial documents, take the required courses, complete your bankruptcy forms, and file your case with the court.

We’ll also cover what happens after you file and how to finish your case.

It takes some time and effort, but many people file for free and get the relief they need.

Collect Your Alabama Bankruptcy Documents

To get ready for your Chapter 7 case, you’ll need to gather some important documents. These will help you fill out your bankruptcy forms and give the court a clear picture of your finances.

Gathering everything up-front can make the rest of the process much smoother.

You’ll need:

• Pay stubs or other proof of income for the past six months
• Tax returns from the last two years
• A bank account statement that includes your bankruptcy filing date

These will be used to check your income and confirm that you’re eligible to file.

Other helpful documents include:

• Credit card and loan statements
• Letters from debt collectors
• 6–12 months of bank statements
• A recent copy of your credit report

Your credit report can help you accurately list all your debts. You can get a free copy at AnnualCreditReport.com.

Identify Your Alabama Bankruptcy District

Before you take the next steps in your bankruptcy journey, you need to know which district you’ll be filing in.

Alabama has three bankruptcy districts: Northern District, Middle District, and Southern District.

Each district has slightly different rules for filing.

Your district is determined by the county you live in. It affects things like:

• Which credit counseling and debtor education courses you can take
• Where you file your bankruptcy forms
• Which rules apply to your case

Use the chart below to find your district:

Take a Credit Counseling Course

Before you file your case, you need to take a credit counseling course from an approved provider.

This short class reviews your finances and explains possible alternatives to bankruptcy. It’s designed to give you the tools and information you need to make the best choice for your situation.

Here are some important course details:

• You must take the course six months before you file
• You can take it online, over the phone, or sometimes in person
• It typically costs $10–$50 (many providers offer a fee waiver if you can’t afford it)
• When you finish, you’ll get a certificate that you must file with your bankruptcy forms

Alabama is unique: Each district has its own list of approved course providers. Make sure you choose one that’s accepted in your district.

Complete the Bankruptcy Forms

After you finish your credit counseling course, you’re ready to dive into the bankruptcy forms.

These tell the court about your financial situation, including your income, expenses, debts, and property.

Take your time and do your best to fill out everything accurately.

The forms are the same across the country. You can download them for free as fillable PDFs at USCourts.gov.

If you’re working with a bankruptcy attorney, they’ll handle the paperwork for you based on the information you provide.

Get Your Filing Fee

There’s a $338 court fee to file a Chapter 7 bankruptcy case.

But many people qualify for a fee waiver and file for free.

If you don’t qualify for a waiver, you can apply to pay the fee in up to four installments.

You’ll get the protection of the automatic stay as soon as you file. The automatic stay stops most debt collection, like wage garnishment and foreclosure.

Just be sure to follow your payment plan closely. If you miss a payment, the court may dismiss your case.

Some people prefer to save up the full fee ahead of time. The right option depends on your situation and what you feel comfortable with.

Print Your Bankruptcy Forms

If you’re filing for Chapter 7 bankruptcy in Alabama without a lawyer, you’ll usually need to print your forms. Submit them to the court in person or by mail.

Some courts allow online filing, but even then, a few forms may still need to be printed and delivered.

If you print the forms, use regular white letter-size paper (8.5″ x 11″). Print everything single-sided using black ink.

Don’t staple or hole-punch your forms.

Many of the forms look similar. Use a checklist to make sure you’re printing and organizing everything correctly.

Sign every page that has a signature line. These can be easy to miss.

Keep a copy of your forms for your records.

If you’re working with a lawyer, they’ll usually file everything electronically for you through the court’s system.

File Your Forms With the Alabama Bankruptcy Court

Each of Alabama’s three districts has its own rules about where and how to file your Chapter 7 paperwork.

You’ll need to file in the district that covers the county where you live.

Most folks filing on their own will need to submit their forms either by mail or in person.

The Southern District is the only one that offers online filing for people filing on their own. It still requires a few forms to be delivered separately.

Mailing your forms is allowed in every district, but many people prefer to hand-deliver their forms.

When you file in person, a court clerk can check for missing signatures or documents. You’ll get your case number right away.

If you choose to mail your forms, consider sending them via certified mail. You’ll have a record of when they were sent and received.

Mail Documents to Your Trustee

After you file your bankruptcy case in Alabama, the court will assign someone to review your case.

In Alabama, they’re supervised by a bankruptcy administrator.

The administrator’s job is to make sure your paperwork is complete and accurate. They also oversee your 341 meeting, which is a short required meeting that occurs about a month after you file.

Before that meeting, they’ll ask you to send them some documents by mail.

Here’s what most reviewers ask for:

• Your two most recent federal tax returns
• A bank statement that covers the day you filed your case
• A copy of your photo ID, like a driver’s license or passport
• Proof of your Social Security number
• Proof of your current income, like a recent pay stub

Mail these at least 14 days before your 341 meeting. If you’re missing something, you can include a short note explaining why.

You’ll get the name and mailing address of the person overseeing your case in an official notice from the court after you file.

Take a Debtor Education Course

Before the court can wipe out your debts, you’ll need to complete a second required course called debtor education.

Some people call it personal financial management.

This course teaches basic money management skills. It helps you stay on track after bankruptcy and make the most of your fresh start.

Here’s what to know:

• You must take the course within 60 days of your 341 meeting
• You can take it before or after the meeting
• You must use a court-approved provider for your district

Each district in Alabama has its own list of approved providers.

You must file your course completion certificate with the court. If you don’t, the court can close your case without erasing your debts.

Attend Your 341 Meeting

About a month after you file your bankruptcy case, you’ll have a short meeting called the 341 meeting.

People also call it the meeting of creditors.

This may sound intimidating, but it’s usually simple and low stress. The goal is to confirm that everything in your paperwork is accurate.

Even though creditors are allowed to attend, they rarely do. Most of the time, it’s just you and the person assigned to review your case having a quick conversation.

These meetings are now almost always held by Zoom video. You can join from home or anywhere you have a quiet space and an internet connection.

The court will send you a notice with the date, time, and instructions for how to join your meeting.

You’ll need two forms of identification:

• A government-issued photo ID, like a driver’s license or passport
• Proof of your Social Security number

During the meeting, you’ll be placed under oath and asked a few standard questions. If something in your paperwork needs clarification, they may ask a few follow-ups.

Most 341 meetings last about 10 minutes and go off without a hitch.

Once this step is done, you’re almost at the finish line.

Deal With Your Car

In Alabama, having a car is often essential. Many people worry about losing their vehicle when filing for bankruptcy.

But most people are able to keep their car.

Whether or not you can keep yours depends on:

• How much your car is worth
• How much equity you have (your car’s value minus any loan balance)
• What exemptions you can use

Alabama doesn’t have a specific motor vehicle exemption. But it does offer a $9,400 personal property exemption that works like a wildcard.

You can use it to protect the equity in your car or other belongings.

If you’re making loan payments on your car, you have three main options:

• Reaffirm the loan: You keep the car and continue making payments under your original loan agreement
• Redeem the car: You pay the lender the car’s current value in one lump sum and the rest of the loan is wiped out
• Surrender the car: You return the car and erase the remaining loan balance

If you own your car outright, you can usually keep it. The car’s current fair market value must be less than $9,400.

You can find the current fair market value using a site like Kelley Blue Book.

Alabama Bankruptcy Means Test

To qualify for Chapter 7 bankruptcy, you’ll need to pass something called the means test.

This test looks at your income to make sure you’re eligible to have your debts erased without a repayment plan.

The means test has two parts.

First, you compare your household income to the median income for a similar household in Alabama. If your income is below the state median, you automatically pass and can file for Chapter 7.

If your income is over the limit, you’ll move on to the second part. This part looks at your monthly expenses and calculates how much disposable income you have left.

If you don’t have much left over after covering your basic needs, you may still qualify for Chapter 7.

Many people pass the means test at Step 1. But even if you don’t, that doesn’t mean you’re out of options.

You may still qualify based on your actual expenses. Or you might explore filing for Chapter 13 instead.

If you need help understanding whether you qualify, you can speak with a bankruptcy attorney for free.

Alabama Bankruptcy Exemptions

When you file for bankruptcy, exemptions help protect the things you need to move forward. They make sure you don’t have to start over with nothing.

Some states let you choose between state and federal bankruptcy exemptions. Alabama isn’t one of them.

If you file here, you’ll use Alabama’s state exemptions.

Here are three important Alabama exemptions:

• Homestead: You can protect up to $18,800 of equity in your home if it’s your primary residence
• Vehicle: Alabama doesn’t have a specific motor vehicle exemption, but…
• Wildcard (personal property): You can protect up to $9,400 of personal property. Many people use this to protect a car, household items, or other belongings

Most people who file for Chapter 7 in Alabama can keep everything they own. Their property is fully covered by exemptions.

Alabama Bankruptcy Lawyer Cost

In Alabama, bankruptcy lawyers usually charge a flat fee between $815 and $1,500 for a Chapter 7 case.

This is often the biggest cost in the bankruptcy process.

Hiring a lawyer isn’t always necessary, but it can be worth it. Consider hiring a lawyer if you own a home or have a more complex financial situation.

Some people just feel better having legal support.

Alabama Legal Aid Organizations

There are numerous legal aid organizations in Alabama that provide low-cost or free legal services to Alabama residents who qualify.

If you’d like some legal advice about your case but can’t afford an attorney, contact a legal aid organization. See if they can help you with your bankruptcy filing.

Legal Services Alabama, Inc.
(334) 223-0240
2567 Fairlane Drive, Suite 300, Montgomery, AL 36116

Alabama Districts & Filing Requirements

Earlier in this guide, we explained how to figure out which bankruptcy district you’re in. Now that you’re ready to file, here’s how the districts are organized. You’ll also learn where to send your forms based on your county.

Northern District of Alabama Requirements

The Northern District is divided into four divisions. Each one has its own courthouse.

Where you file depends on the county you live in.

If you’re filing on your own without a lawyer, you’ll need to submit your forms in person or by mail. Online filing isn’t available in this district.

Northern Division (Huntsville)

Serves: Colbert, Cullman, Franklin, Jackson, Lauderdale, Lawrence, Limestone, Madison, Morgan, and Winston counties

In-person and mailing address:
U.S. Bankruptcy Court Clerk’s Office
660 Gallatin Street SW
Huntsville, AL 35801

Eastern Division (Anniston)

Serves: Calhoun, Cherokee, Clay, Cleburne, DeKalb, Etowah, St. Clair, and Talladega counties

In-person address:
U.S. Bankruptcy Court
1100 Gurnee Avenue
Anniston, AL 36201

Mailing address:
U.S. Bankruptcy Court Clerk’s Office
1100 Gurnee Avenue, Room 288
Anniston, AL 36201

Southern Division (Birmingham)

Serves: Blount, Jefferson, and Shelby counties

In-person and mailing address:
U.S. Bankruptcy Court Clerk’s Office
1800 Fifth Avenue North
Birmingham, AL 35203

Western Division (Tuscaloosa)

Serves: Bibb, Fayette, Greene, Lamar, Marion, Pickens, Sumter, Tuscaloosa, Walker, and Winston counties

In-person address:
Federal Building & U.S. Courthouse
2005 University Boulevard
Tuscaloosa, AL 35401

Mailing address:
U.S. Bankruptcy Court Clerk’s Office
2005 University Boulevard, Room 2300
Tuscaloosa, AL 35401

Pay Your Filing Fee in the Northern District

If you’re paying the $338 filing fee, you’ll need to mail a money order or cashier’s check. Make it out to Clerk, U.S. Bankruptcy Court to the court’s main office in Birmingham.

Payments aren’t accepted in person at any courthouse.

Mail your payment to:
U.S. Bankruptcy Court – Southern Division
1800 5th Avenue North
Birmingham, AL 35203

Include your name and case number on the payment.

The court doesn’t accept cash, credit cards, personal checks, or online payments.

If you’re applying for a fee waiver or asking to pay in installments, include that request when you file your bankruptcy forms.

Middle District of Alabama Requirements

The Middle District has three divisions, but only the Montgomery courthouse accepts bankruptcy filings.

Even if you live closer to Opelika or Dothan, you’ll need to file your forms in Montgomery.

You can file by mail or in person. Online filing isn’t available in this district.

Montgomery

Serves: Autauga, Barbour, Bullock, Butler, Chilton, Coosa, Covington, Crenshaw, Elmore, Lowndes, Montgomery, and Pike counties

In-person and mailing address:
U.S. Bankruptcy Court Clerk’s Office
Middle District of Alabama
Frank M. Johnson Jr. Federal Courthouse
One Church Street
Montgomery, AL 36104

You can also use the after-hours drop box at the main entrance if the clerk’s office is closed.

Pay Your Filing Fee in the Middle District

If you’re paying the $338 filing fee, you can either bring a money order or cashier’s check to the courthouse in Montgomery. Or you can mail it to the same address.

Make it out to Clerk, U.S. Bankruptcy Court.

Send or deliver your payment to:
U.S. Bankruptcy Court – Middle District of Alabama
Frank M. Johnson Jr. Federal Courthouse
One Church Street
Montgomery, AL 36104

Include your name and case number on the payment.

The court doesn’t accept credit cards, personal checks, cash, or online payments.

If you’re applying for a fee waiver or asking to pay in installments, include that request when you file your bankruptcy forms.

Southern District of Alabama Requirements

The Southern District has courthouses in Mobile and Selma. Only the Mobile courthouse accepts bankruptcy filings.

Mobile Division

Serves: Baldwin, Choctaw, Clarke, Conecuh, Dallas, Escambia, Marengo, Mobile, Monroe, Perry, Washington, and Wilcox counties

In-person and mailing address:
U.S. Bankruptcy Court – Southern District of Alabama
201 St. Louis Street
Mobile, AL 36602

If you’re filing without a lawyer in the Southern District, you can use the Electronic Self-Representation (eSR) system. You can prepare and submit your Chapter 7 forms online.

This tool helps you complete your paperwork and send it to the court electronically.

After you submit your forms through eSR, you’ll need to mail or hand-deliver a few required documents within 10 days. Your case won’t be opened until the court receives all of these documents.

Pay Your Filing Fee in the Southern District

The Chapter 7 filing fee is $338. You can pay with a money order, cashier’s check, or exact cash at the Mobile courthouse.

Make checks payable to Clerk, U.S. Bankruptcy Court.

Include your name and case number on the payment.

The court doesn’t accept personal checks, credit cards, or debit cards.

If you’re applying for a fee waiver or asking to pay in installments, include that request when you file your bankruptcy forms.