Bankruptcy Courts in Alabama
If you live in Alabama and are thinking about filing for bankruptcy, your case will be handled in federal bankruptcy court. Alabama has three bankruptcy districts, each serving specific counties:
- Northern District of Alabama – based in Birmingham, Decatur, and Anniston
- Middle District of Alabama – based in Montgomery, Dothan, and Opelika
- Southern District of Alabama – based in Mobile and Selma
Each district has its own courthouse, judges, and trustees. You’ll file your case in the district that covers the county where you live or where your main property or business is located. Because filing in the correct district is important, an experienced bankruptcy attorney can help ensure your case is filed properly and handled efficiently.
All Alabama bankruptcy courts apply the same federal bankruptcy laws, but each district also has its own local rules and procedures that supplement those laws. Because these requirements can vary and change over time, it’s best to work with an experienced bankruptcy attorney who understands the local practices in your area. Court decisions follow guidance from the U.S. Court of Appeals for the Eleventh Circuit, which also covers Georgia and Florida.
Bankruptcy Filing Trends in Alabama
Bankruptcy filings across Alabama have remained steady in recent years, reflecting the ongoing financial challenges many families face. According to the Administrative Office of the U.S. Courts, thousands of individuals and families in Alabama file for bankruptcy each year.
Chapter 7 filings continue to be the most common, allowing debtors to eliminate unsecured debt such as credit cards and medical bills. Chapter 13 repayment plans remain popular among homeowners and wage earners seeking to catch up on missed payments and protect their property. These cases show how many Alabamians each year use bankruptcy as a structured way to stop collection actions, prevent foreclosure, and rebuild financial stability.
Alabama Bankruptcy Exemptions — What You Can Keep
Bankruptcy does not mean losing everything you own. Alabama law protects certain property called exempt property, which includes the things you need to live and work. These items are protected by law and cannot be taken or sold to pay creditors.
Alabama has opted out of the federal exemption system, so residents must use Alabama state exemptions instead. The table below lists the most common types of property you can protect when filing for bankruptcy in this state, along with the exemption amounts allowed by law.
| Type of Property | Amount You Can Protect (Individual / Joint) |
|---|---|
| Homestead (primary residence) | $18,800 / $37,600 |
| Personal property (wildcard, any items except wages) | $9,400 / $18,800 |
| Wages, salaries, or compensation | 75% protected |
| Household goods and furnishings | Fully protected |
| Vehicle essential to debtor’s business | Fully protected |
| Tools or equipment essential for work | Fully protected |
| Life-insurance proceeds or cash value | Fully protected |
| Retirement accounts and pensions | Fully protected |
| Unemployment and workers’ compensation benefits | Fully protected |
| Burial plots, family pictures, and wearing apparel | Fully protected |
If you’re married and file jointly, most exemption amounts double. Because Alabama requires the use of state exemptions, and the laws contain specific definitions and limits, it’s important to work with a bankruptcy attorney to make sure your home, vehicle, and savings are fully protected.
Steps and Local Requirements
Credit counseling. Before filing, you must complete a short credit-counseling course from an approved agency. A second debtor-education course is required before your debts can be discharged (legally erased).
Means test. To qualify for Chapter 7, your household income must be below Alabama’s median income or pass a calculation known as the means test, which compares your income and expenses to determine whether you can repay some of your debt.
Filing fees. The filing fee is $338 for Chapter 7 and $313 for Chapter 13. If you cannot pay the full fee at once, you may request to pay in installments or apply for a waiver based on income.
Meeting of creditors. About a month after filing, you’ll attend a brief “341 meeting.” This meeting is not held in front of a judge. Instead, a bankruptcy trustee assigned to your case will ask a few basic questions to confirm your identity and review your paperwork.
In Alabama, meetings are typically held virtually or in person depending on the district where your case was filed. Meetings in the Northern District are conducted virtually or at the courthouses in Birmingham, Decatur, or Anniston; meetings in the Middle District take place in Montgomery, Dothan, or Opelika; and meetings in the Southern District are generally held virtually or at the courthouses in Mobile or Selma.
Local rules and forms. Each district follows local rules that supplement federal law. The court’s website provides current rules, required forms, and filing instructions. Following them carefully helps your case proceed without delay.
What This Means for You
Filing for bankruptcy in Alabama can provide a fresh financial start and immediate relief from creditor pressure. The process stops most collection activity, including lawsuits, garnishments, foreclosures, and repossessions.
Most people who file are able to keep their homes, vehicles, retirement savings, and personal belongings. Because bankruptcy involves detailed eligibility rules, local procedures, and strict filing requirements, it’s best to consult an experienced bankruptcy attorney before filing.
An attorney can help you:
- Decide whether Chapter 7 or Chapter 13 is best for your situation
- Protect your property using Alabama exemptions
- Complete the required credit-counseling courses
- File all paperwork correctly and meet local deadlines
With the right preparation and support, bankruptcy can provide lasting debt relief and a foundation for long-term financial recovery.
U.S. Bankruptcy Court – Northern District of Alabama
Federal Circuit: Eleventh Circuit Court of Appeals
Court Locations: Birmingham, Decatur, Anniston
Where You File Depends on Where You Live
The Northern District of Alabama is divided into three divisions, and each division serves specific counties.
Birmingham Division
- Blount County
- Jefferson County
- St. Clair County
- Shelby County
- Talladega County
- Walker County
Decatur Division
- Colbert County
- Cullman County
- Franklin County
- Lawrence County
- Lauderdale County
- Limestone County
- Madison County
- Marion County
- Morgan County
Anniston Division
- Calhoun County
- Cherokee County
- Clay County
- Cleburne County
- Etowah County
- Randolph County
If you’re unsure which division serves your county, an experienced bankruptcy attorney can help you determine the correct location and guide you through the filing process.
Recent Filing Statistics
The Northern District consistently records the highest number of consumer-bankruptcy filings in Alabama. According to data from the Administrative Office of the U.S. Courts, thousands of Chapter 7 and Chapter 13 cases are filed here each year—representing the majority of filings statewide. Most are Chapter 7 discharges, though Chapter 13 repayment plans remain common among homeowners seeking to prevent foreclosure.
U.S. Bankruptcy Court – Middle District of Alabama
Federal Circuit: Eleventh Circuit Court of Appeals
Court Locations: Montgomery, Dothan, Opelika
Where You File Depends on Where You Live
The Middle District of Alabama is divided into three divisions, serving the following counties.
Montgomery Division
- Autauga County
- Barbour County
- Bullock County
- Butler County
- Chilton County
- Coffee County
- Covington County
- Crenshaw County
- Dale County
- Elmore County
- Geneva County
- Henry County
- Houston County
- Lowndes County
- Montgomery County
- Pike County
Dothan Division
- Houston County (shared jurisdiction)
- Geneva County (shared jurisdiction)
Opelika Division
- Chambers County
- Lee County
- Macon County
- Russell County
If you’re uncertain which division covers your county, a knowledgeable bankruptcy attorney can help ensure your case is filed in the correct location.
Recent Filing Statistics
The Middle District of Alabama maintains a steady volume of consumer-bankruptcy filings each year. Thousands of Chapter 7 and Chapter 13 cases are filed, with Chapter 13 filings being more common in this district—especially among working families seeking to protect their homes or vehicles.
U.S. Bankruptcy Court – Southern District of Alabama
Federal Circuit: Eleventh Circuit Court of Appeals
Court Locations: Mobile, Selma
Where You File Depends on Where You Live
The Southern District of Alabama is divided into two divisions, serving specific counties.
Mobile Division
- Baldwin County
- Choctaw County
- Clarke County
- Conecuh County
- Escambia County
- Mobile County
- Monroe County
- Washington County
Selma Division
- Dallas County
- Greene County
- Hale County
- Marengo County
- Perry County
- Pickens County
- Sumter County
- Wilcox County
If you’re unsure where to file, an experienced bankruptcy attorney can help determine the right division and ensure your case is filed correctly.
Recent Filing Statistics
The Southern District handles thousands of bankruptcy filings each year, with most being Chapter 7 cases that allow individuals to eliminate unsecured debt. Chapter 13 filings are also common among residents seeking to catch up on mortgage or car payments while maintaining ownership of their property.
