Anniston Law Firm Assists with Chapter 13 Bankruptcy

Chapter 13 Bankruptcy Attorneys Guide Clients in Repayment Plans

To file for chapter 13 bankruptcy, a debtor must have regular income and some disposable income that can be applied towards their payment plan. Chapter 13, also known as reorganization, allows debtors to spread out overdue payments over three to five years and reinstate original agreements with creditors.

Who Should File for Chapter 13 Bankruptcy?

Reorganization can be a good option for filers with valuable non-exempt property and those who want to keep secured assets (like their home or a car) when they have more equity in them than they can protect through Alabama’s bankruptcy exemptions.

Under a chapter 13 bankruptcy plan, debtors propose paying off creditors under the terms of a three-to-five-year repayment plan. This plan offers to pay off all or part of their debt with future income. Chapter 13 bankruptcy can be used to:

• Prevent foreclosure on a home
• Bring missed car or mortgage payments current again
• Repay delinquent tax debt
• Stop interest from accruing on tax debt
• Keep your valuable non-exempt property

If the filer can abide by the terms of their repayment plan, all their remaining dischargeable debt will be wiped out at the end of the plan (within three to five years). The amount that will be repaid is determined by several considerations, including the debtor’s disposable income. The amount must be equal to at least as much as creditors would have obtained through a chapter 7 bankruptcy filing.

Contact an Experienced Anniston, AL Chapter 13 Bankruptcy Law Firm

Are you exploring repaying your debt through an Alabama chapter 13 bankruptcy? Contact the Bond & Botes Law Offices online or call 1-877-581-3396 to schedule your no-cost initial consultation with an Anniston chapter 13 bankruptcy attorney today.