1927 7th Street

   Tuscaloosa, AL  35401

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Bringing peace of mind to the people of Tuscaloosa, Walker and surrounding counties.

Chapter 7 Bankruptcy


Chapter 7 bankruptcy is another type of bankrupty, one in which most debts are discharged outright without making monthly payments through the Bankruptcy Court.  While Chapter 7 is a tool available to most individuals, it does not address several different types of debt.  A Chapter 7 will not discharge certain debts including the following:


  • Domestic support obligations (e.x. child support, alimony, spousal support) 
  • Taxes owed (generally those incurred within the last three tax years)
  • Student Loans
  • Debts arising from fraud, criminal charges, fines and penalties imposed

     by a court       


With Chapter 7, most people get to exempt, or keep, all of their property.  While bankruptcy law allows only a certain amount of property to be exempt, for most people this does not present a problem.  However, when you first meet with the Elmer Law Firm, an experienced attorney will explain how your property would be impacted in a Chapter 7 bankruptcy.


For many people, the most worrying aspect of Chapter 7 is whether they qualify or not.  In 2005, Congress passed an Amendment to the Bankruptcy Code by adding a 'means test.'  In order to file a Chapter 7, you must fall under the median household income for the State of Alabama.  For those whose income is above the median but filing a Chapter 7 would be the most beneficial, call to schedule a free consultation with the Elmer Law Firm to further look into your financial situation to determine whether you qualify.