When you’re facing mountains of debt, each day can be a challenge. Your stress levels continue to rise as interest and fees add up. What if the bank repossesses my car or home? How will I get to work, and where will my family live? Creditors can sue you and even try to garnish your wages for unpaid debts. You might think you are the only person who deals with these types of financial struggles. But you are not alone. Whether your financial troubles are sudden or have been brewing for months or years, there are resources available to help you piece your finances back together. At Padgett & Robertson, our Mobile bankruptcy attorneys have been serving clients throughout South Alabama for over 40 years. Chapter 13 bankruptcy is one option that allows you to reduce and eliminate certain debt as well as avoid the liquidation of your assets. But, Chapter 13 Bankruptcy is more complex than Chapter 7, and it is highly advisable that you partner with an experienced attorney that can help you structure the most advantageous plan. Contact our office today to schedule a free consultation. Chapter 13 Bankruptcy is also commonly referred to as Debtors Court in Alabama. Instead of wiping your unsecured debts clean like Chapter 7 Bankruptcy, it consolidates them into a court-approved payment plan lasting three to five years. At the end of that period, any unsecured debts still outstanding will be discharged, and your bankruptcy case will be closed. Chapter 13 is particularly helpful to people who are behind on their mortgage and car payments. It can stop foreclosure and repossession of these assets, prevent creditors from filing lawsuits or garnishing wages, and give you a chance to consolidate your debt into a more manageable monthly payment. In nearly all cases, you’ll get a lower interest rate on vehicle notes, and interest will stop accruing on unsecured debt, like credit cards. With a lower monthly debt payment, you should have more spending money and breathing room at the end of each month. If you are considering filing for Chapter 13 bankruptcy, there are some pros and cons to this approach. Some of the typical benefits to Chapter 13 include: Potential drawbacks to Chapter 13 Bankruptcy include: Chapter 13 bankruptcy is an excellent option for people who don’t qualify for Chapter 7 bankruptcy because of the means test or any other reason. If you have enough income to repay some of your debt but are finding it difficult to make ends meet, Chapter 13 might be an option. It’s also a good choice for people who want to avoid the liquidation aspect of Chapter 7 bankruptcy. If you have substantial assets that you don’t want to sell to satisfy creditors, debt consolidation with Chapter 13 bankruptcy can help you achieve your goals. One of the most powerful features of bankruptcy is the automatic stay. If you are tired of being hounded by bill collectors or are concerned about the implications of foreclosure or repossession of your property, filing for bankruptcy protection can help. As soon as you file, all of your creditors are put on notice, and they are no longer permitted to engage in any type of collection activity. The bankruptcy court will determine what your creditor receives from that point forward. Creditors are no longer allowed to call you, send letters, garnish wages, levy bank balances, file separate lawsuits, or foreclose on or repossess property. If they do, they are in violation of the law. Entering into a debt repayment plan is a serious commitment. If you decide to file for Chapter 13 bankruptcy, the law requires that you first participate in a Credit Counseling course. Once complete, your bankruptcy attorney will create a debt repayment plan that maximizes your chances of success and getting a full discharge of your remaining debts at the end of the process. Your attorney will file a petition with the court along with your debt repayment plan and all the required schedules and financial statements. The court will appoint a Chapter 13 trustee to administer your case. Within 31-45 days of filing the petition, there will be a creditor meeting where the trustee and any creditors can attend and ask questions. You will be responsible for making regular monthly payments to the Chapter 13 trustee for the life of the case (3-5 years). The trustee uses that money to pay your various creditors. Once all payments are made, the bankruptcy court will discharge your remaining unsecured debts. Chapter 13 Bankruptcy is an excellent option for some people who are struggling with debt. But it isn’t for everyone. As your legal counsel, the attorneys at Padgett & Robertson will make sure you understand all of the benefits and potential drawbacks of this route. Our goal is to help you make informed decisions and then guide you through the bankruptcy process so that you can regain your financial freedom. If you do decide to file for Chapter 13, we don’t collect any fees upfront, but can instead include these in your monthly payment to the trustee. Contact our Mobile office today at (251) 342-0264 or reach out to us online to schedule your free initial appointment.Mobile, Alabama Chapter 13 Bankruptcy Attorneys
What is Chapter 13 Bankruptcy in Mobile, Alabama?
Common Benefits and Drawbacks of Chapter 13 Bankruptcy
Qualifying for Chapter 13 Bankruptcy
Getting an Automatic Stay
How Chapter 13 Bankruptcy Works
Speak With an Experienced Mobile, Alabama Personal Bankruptcy Attorney
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4317 Downtowner Loop N.
Mobile, AL 36609
Toll Free: (800) 303-1416
Phone: (251) 342-0264
Email
Alabama State Bar Association Regulations require the following: “No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.” 11 U.S.C. 528 of the U.S. Bankruptcy Code requires the following: “We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”