Chapter 13 Bankruptcy
As a Tuscaloosa bankruptcy lawyer, I often find myself explaining the differences between Chapter 7 and Chapter 13 bankruptcy.
A Chapter 13 case works differently than a Chapter 7 case, in that it provides you with the opportunity to pay back unsecured debt over a 3-5 year period, without having to liquidate assets like your house or car.
A Chapter 13 repayment plan has to meet certain requirements and be approved by the Bankruptcy Court. Payments under the plan are then distributed to your creditors by the Court-appointed trustee – you pay them, and they pay the creditors. Your creditors will no longer be allowed to contact you – provided you continue to meet the requirements of the repayment plan.
Just like Chapter 7, filing a Chapter 13 bankruptcy petition provides relief from creditor harassment, garnishments, tax liens, and repossessions.
While you do have to make payments on your debts and currently have a stable income to qualify for Chapter 13 bankruptcy, the total amount you’re required to pay back can often be substantially reduced by the Bankruptcy Court. Along with this benefit, the Court allows you to keep all of your assets.
A Chapter 13 filing also automatically stops foreclosure proceedings. Don’t wait if you think your home is in danger of foreclosure – as long as you file before the lender completes the foreclosure proceeding, you can be allowed to catch up past due mortgage payments over time and stay in your home.
Chapter 13 could help me with my bills – what do I do next?
Contact me using the form on the right, or give me a call at 205.349.3055. Bring all your debt, income, and asset information to our initial meeting, and I’ll take a look at what Chapter 13 bankruptcy can do for you.
After you have chosen me to help you with your bankruptcy, my office will get your petition filed and help you take care of the necessary paperwork.
You’ll also need to bring your most recent tax records.
You’ve done your Internet research – why spend any more time wondering and worrying? Go ahead and schedule a free consultation – I’m here to help.
