BENEFITS OF FILING A CHAPTER 13 BANKRUPTCY
Generally, chapter 13 BK is preferred by debtors who have a valuable asset, such as a home or car that is not completely covered by exemptions and that they wish to keep. Your attorney will structure your case so that you are able to keep the property in question while catching up on past due amounts and continuing regular payments, as long as you can reasonably afford to do so, and the chapter 13 bankruptcy trustee agrees. This is possible because under a ch 13, a debtor proposes a plan through their attorney to repay creditors over a three to five year period, during which time the debtor can make up overdue payments on any assets and pay into the plan the equivalent value of any assets not covered by chapter 13 bankruptcy exemptions. Since the debtors court plan will require regular monthly or bi-weekly payments, ch. 13 BK is usually only appropriate for a debtor who has a regular source of income. Local Birmingham attorney Melissa Cain will meet with you without cost to answer all of your questions and make sure you have the answers needed to make an informed choice before filing chapter 13 bankruptcy.
FILING YOUR CHAPTER 13 BANKRUPTCY CASE
Filing chapter 13 is very different from ch 7, since the chapter 13 bankruptcy debtor usually remains in possession of the estate property and makes payments to creditors through the debtors court trustee. The payment amount is based on the debtor’s anticipated income over the life of the plan. The attorney represents the client throughout the payment approval process. After filing, the debtor is protected from lawsuits, garnishments, and other creditor action while the plan is in effect. At the confirmation hearing, which your lawyer attends, the court either approves or disapproves the plan, depending on whether the plan meets the Alabama Chapter 13 Bankruptcy code requirements for confirmation. The trustee and your attorney usually work this plan out to protect you while also ensuring creditors who have priority claims are paid inside your plan. In order to ensure you have a successful case, your lawyer will need a statement of your monthly net income, as well as any anticipated future increases in your income. Since the trustee usually requests a copy of your federal tax returns for each year you are paying into the plan, not informing the court of increases in wage compensation could mean that your case falls into jeopardy. Therefore, it is in your best interest to inform your attorney of any changes you anticipate in your current and future income before and during your case.
CHAPTER 13 BANKRUPTCY DISCHARGE OF REMAINING UNPAID DEBT
Unlike chapter 7, the chapter 13 BK debtor does not receive an immediate discharge of debts. The debtor must complete the payments required under the plan filed in bankruptcy court before the chapter 13 discharge is received.
One of the benefits of filing a chapter thirteen is that the discharge is considerably broader (i.e., more debts are eliminated) under chapter 13 code than the discharge under chapter 7 BK code in Birmingham, AL.
You can find out more concerning chapter 13 debtors court during your free consultation with local attorney Melissa Cain. You can reach her now to schedule a free consultation at 205-582-7007.
FILING CHAPTER 13 BANKRUPTCY
Basically, filing Chapter 13 Bankruptcy in Alabama means that you will pay back at least a portion of your debt using a court approved payment plan. It lasts approximately three to 5 years, during which time your attorney will represent you. Filing chapter 13 bankruptcy is usually much cheaper up-front when compared to a chapter 7, simply because the attorney fee and court costs are wrapped into the monthly plan payments. We are eager to answer your chapter 13 bankruptcy questions, and we will supply you with all of the bankruptcy information we can.
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