Chapter 13 Bankruptcy in Birmingham
Bankruptcy & Debt Consolidation in Birmingham, Anniston, Gadsden, Tuscaloosa, Talladega, and Walker County areas
A Chapter 13 case is often used by individuals who want to catch up past-due mortgage or car loan payments and keep their assets. Filing Chapter 13 bankruptcy allows individuals with regular income to develop a court-ordered repayment plan for all or some of their debts. Chapter 13 allows you to keep your property and repay your debts over an extended time period with little or no interest. In Chapter 13, the debtor must propose in good faith to pay all or part of the debts from future income over a period of three to five years. According to bankruptcy law if the court approves the plan, the debts may be settled in this manner even if some creditors object to the plan. If the debtor makes the required payments, he or she will be able to keep his or her property. Chapter 13 can be a better choice than Chapter 7 for those who are behind on their home mortgage or their car loans, as well as for other reasons. For instance some of the debts that cannot be discharged in a Chapter 7 can be discharged in Chapter 13. Also the debtor can pay some non-dischargeable federal taxes over the term of the Chapter 13 plan without interest. Since most people will pay their debts if given some financial relief, Chapter 13 allows them to do so in good faith.
Known as the wage earner’s plan or debtor's court, Chapter 13 bankruptcy was designed for people with regular incomes greater than their living expenses. They may not be able to pay the amount that their creditors are asking, but can afford to pay some portion of their debt on a regular basis. Individuals may choose to file Chapter 13 bankruptcy when:
- They owe debts that cannot be discharged under Chapter 7, such as taxes, child support, or fraud judgments.
- They have liens that are larger than the value of the assets securing the debt.
- They have years of unfiled taxes.
- They are behind on car or house payments.
- Their assets are worth more than the available exemptions.
How a Chapter 13 repayment plan works
In Birmingham, Chapter 13 bankruptcy follows state-established income guidelines to determine the length of your repayment plan. If your monthly income falls under the state median, your repayment plan could last for three years, unless the court approves a longer payment period. If your monthly income exceeds the state median, you will have a longer repayment period of five years. Regardless of your income, however, repayment plans may not extend beyond five years.
During your repayment period, creditors may not start or continue efforts to collect outstanding payments you owe them outside of court proceedings. In Birmingham, attorney Cindee Dale Holmes can help you determine if Chapter 13 bankruptcy is the right way for you to ease your financial burdens. With her representation, the court will establish and ultimately oversee a repayment plan that you can manage, offering you relief from your financial worries and giving you back your peace-of-mind.
Your repayment plan will begin immediately after your Chapter 13 bankruptcy case has been filed with the court. To get the help you need contact an experienced bankruptcy attorney with 22 years of experience. As your repayment plan comes to a close, and you have successfully met all of the payback conditions, you will receive a full discharge of your debt, even if the full amount of the debt has not been repaid. With Cindee’s help in establishing your payback plan, your self-esteem will be restored and the collection calls will stop once and for all.
Experienced Bankruptcy Lawyer – Cindee Dale Holmes
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