Chapter 13 Bankruptcy Attorneys in Spanish Fort, AL

You’re in debt—more than you can handle. But you’re not looking to wipe your debt away completely. If you can just restructure your payments, you know you’ll be able to get caught up and get back on track. If this describes you, Chapter 13 bankruptcy could likely be a good choice for you. Chapter 13 bankruptcy allows for the more gradual repayment of debts and a steady return to financial stability.

Considering Chapter 13 bankruptcy in Spanish Fort? Working with the team at Padgett & Robertson can help you explore your options and avoid common mistakes. Call us at 251-336-3695 to set up a consultation now.

An Overview of Chapter 13 Bankruptcy

While Chapter 7 bankruptcy eliminates most debts, Chapter 13 restructures them and makes the payments more affordable. One of the key benefits of Chapter 13 bankruptcy is that it allows you to protect assets from seizure while working towards a debt-free life. After identifying your debts, you create a repayment plan that lasts three to five years. Upon completion of that plan, your secured debts are up-to-date and any remaining unsecured debt is discharged.

Who is Chapter 13 for? It’s generally recommended for those who have too much income or too many assets to qualify for Chapter 7 bankruptcy. This path gives individuals and couples the chance to reorganize their finances, get on a regular repayment schedule, and change how they look at their finances.

What to Expect When You Choose Chapter 13 Bankruptcy

Knowing the Chapter 13 process can help you feel more confident as you prepare for your free consultation. Here’s what to expect from this process:

• Confirming eligibility and filing: When you meet with your Spanish Fort bankruptcy lawyer, they will take an in-depth look at your finances. This includes your income sources, assets, secured debts, and unsecured debts. They’ll determine whether or not you qualify for Chapter 13 bankruptcy. If you do and you opt to move forward, they will assist with filing. Your bankruptcy petition should include your debts, assets, income sources, and expenses.

• The automatic stay: Once you file bankruptcy, the automatic stay goes into place. The automatic stay prevents creditors from pursuing collection actions against you. They cannot move forward with foreclosing on your home, repossessing your car, garnishing your wages, or even calling you to collect on debts. This is a huge relief for most debtors, as it gives them a break from the constant collection efforts of their creditors.

• Creating a repayment plan: You will need to create a repayment plan. The repayment plan must cover all of your secured debts that you are currently behind on and allow you to continue making regular payments on those assets. It should also address your unsecured debts, although many people do not fully repay their unsecured debts during this process. The plan should be unique to you, based on your income, debt amount, assets, and expenses.

• Executing the repayment plan: The repayment plan will go to the court, where they will likely approve it during a confirmation hearing. You must make all scheduled payments and follow the terms of your bankruptcy to retain your assets and become debt-free. At the end of the three-to-five-year repayment period, any remaining unsecured debt is discharged.

Relevant Laws in Alabama

While bankruptcy is available throughout the United States, bankruptcy laws do vary from state to state. Cases in Spanish Fort must follow the rules laid out by the United States Bankruptcy Court for the Southern District of Alabama.

This court allows debtors who are regular employees, self-employed, or unincorporated business owners to apply for Chapter 13 bankruptcy. Your payment plan will be three years if your income is less than the median in Alabama, but it will be five years if your income exceeds the median. To have your bankruptcy granted, you will need to file a Certificate of Credit Counseling.

You may wonder if exemptions are relevant in this type of bankruptcy. Your assets aren’t being seized to repay creditors, but they are still relevant in Chapter 13. Your assets do affect your monthly repayment plan, so it’s important to familiarize yourself with exemptions under Alabama state law.

How Padgett & Robertson Can Help with Chapter 13

We know how complex and overwhelming the process of filing for bankruptcy can be—especially if you opt for Chapter 13 bankruptcy. While Chapter 7 bankruptcy is over fairly quickly, you are bound to a Chapter 13 plan for a minimum of three years.

It is crucial that you discuss your plan with an attorney before moving forward. We’ll ensure that your plan meets the court’s requirements and is reasonable for your current income and financial obligations. Our team understands that everyone’s financial situation is unique, which is why we don’t give one-size-fits-all advice. We will look at your family’s financial needs and give you our professional advice.

As we help you develop a customized repayment plan, we will work to create a plan that cost fulfills your obligations and gives you enough breathing room to provide for your family. Throughout this process, we handle all communication with creditors so they know about your bankruptcy filing and the automatic stay. Our goal is to limit your stress during this time and allow you to take a break from the harassment creditors often heap on debtors who are in over their heads.

Throughout this process, we’ll stay in frequent contact with you and ensure prompt, complete answers to your questions. With our experience, informed advice, and professional guidance, we will help you get through this time with minimal stress and anxiety.

Discuss Your Bankruptcy Options with Padgett & Robertson Today

The first step to financial freedom is a meeting with Padgett & Robertson. The sooner you connect with our Spanish Fort bankruptcy lawyers, the sooner you can become debt-free and get a fresh financial start. Set up your consultation now by reaching out online or calling us at 251-336-3695.