Prichard, AL Chapter 13 Bankruptcy Attorneys

Financial challenges can be all-consuming, often leaving debtors with disrupted sleep, difficulty performing at work, and struggling in their personal relationships. When the debt gets to be too much, it’s important to consider all of your options in Prichard—including Chapter 13 bankruptcy.

Chapter 13 bankruptcy isn’t a viable option for everyone. But if you qualify and you can keep up with the payment schedule, it may give you a fresh start and allow you to keep your hard-earned assets. Ready to learn more? Call Padgett & Robertson at 800-303-1416.

Is Chapter 13 Bankruptcy Right for You?

While Chapter 7 bankruptcy is viewed as a complete discharge of all qualifying debts, Chapter 13 is a slightly different approach. Rather than eliminating your debt, Chapter 13 bankruptcy restructures much of it and eliminates some of it. We’ll explain how the different types of debt are handled later.

Chapter 13 may be the right choice for you if you have a steady income that disqualifies you from filing Chapter 7 bankruptcy. Chapter 7 is only available to those who fall below a certain income or a specific amount of disposable income. If you don’t fall into that category, Chapter 13 may still give you a fresh start. Your debt is restructured into a monthly payment plan that fits your income and other expenses.

You may also opt for Chapter 13 if you want to keep your home and vehicle but have fallen behind on payments. The restructuring of your payments and missed payments may give you some breathing room and help you get caught up without putting your assets at risk.

Different Debts Under Chapter 13 Bankruptcy

It’s important to understand how different debts are managed in Chapter 13 bankruptcy in Prichard. First, some debts must be repaid in full with your repayment plan—and they are prioritized over other debts. Prioritized debts include many types of tax debt, alimony, and child support.

Next, you have secured debt. Secured debts are backed by collateral, so they include mortgages, car loans, and similar asset-backed loans. The repayment plan will allow you to get caught up on your missed payments and stay current on your regular payments. Finally, you have unsecured debt. This includes credit cards, personal loans, and medical bills. These loans are not backed by collateral. Your repayment plan may have you pay some or none of these debts. At the conclusion of your repayment plan, any unpaid unsecured debts are discharged.

An Overview of the Chapter 13 Bankruptcy Process

Understanding the Chapter 13 bankruptcy process can help you know exactly what to expect. We know that this can be a nerve-wracking experience, and our goal is to guide you through it and minimize your stress. The process includes:

• Filing the petition: Your journey starts with the Chapter 13 bankruptcy petition, which includes a substantial amount of documentation and paperwork outlining your financial situation. You’ll provide information on your debts, income sources, assets, and expenses. This proves to the court that you do qualify for bankruptcy.

• Automatic stay: Upon filing for bankruptcy, the automatic stay goes into effect. This stops creditors from attempting to collect on your debts until the process is completed. This step alone brings substantial relief to many people who are tired of dodging collectors’ calls and lawsuit threats.

• The repayment plan: You’ll need to come up with a repayment plan that lasts three to five years. Our team of bankruptcy attorneys will help you with this step. It’s important to pay off what you can but to avoid creating a plan that leaves you without any wiggle room in your budget. The plan must be reasonable and allow you to cover your living expenses.

• Confirmation hearing: At your confirmation hearing, the court will go over your repayment plan and hopefully approve it. Creditors do have the chance to raise objections, but this is relatively uncommon.

• Paying off your debt: Now you have to follow through on your repayment plan. Make every payment on time for the three to five years that you are bound to your plan.

• Completion of the repayment plan: Once you have finished your repayment plan, your remaining qualifying unsecured debts are discharged. You walk away from Chapter 13 bankruptcy caught up on your secured debts and with a better financial outlook.

How Padgett & Robertson Can Help You

Choosing the right legal team for your bankruptcy filing is crucial. This is a huge step to take—it will determine your financial situation for the next three to five years, and be a significant part of your journey back to financial stability. You’ll want to work with a lawyer who understands your situation, does not make you feel bad about your current financial standing, and supports you throughout your repayment plan.

We know that you’ll have lots of questions as you file for bankruptcy, set up your repayment plan, and make your payments. We believe that there are no dumb questions, especially when it comes to your finances. You can always know that our team will be here for you, ready to answer your questions, explain your options, and give our professional advice.

When you pick Padgett & Robertson, you’re selecting a legal team with extensive experience in bankruptcy filings in Alabama. Our knowledge and experience allow us to look into your finances, explain the likely outcome of your filing, and help you weigh your options. We will never push you into filing or making any major decisions—we know all too well how serious these choices are, and it’s crucial that you make the best choice for your family. We’re here to explain your options and guide you through bankruptcy if that’s the best path for you.

Call Us to Discuss Your Next Steps

If you’re ready to explore Chapter 13 or Chapter 7 bankruptcy in Prichard, let’s sit down, take a look at your finances, and talk about what comes next. Schedule your free consultation with Padgett & Robertson now to start your journey to freedom from debt. Call us at 800-303-1416 or fill out our online contact form to get started.