Birmingham, AL Law Firm Concentrates on Chapter 13 Bankruptcy

Alabama Bankruptcy Attorneys Help Clients Get Back on Track

Chapter 13 bankruptcy enables a debtor with regular income to pay off some or all of his debt over a specified period of time. In return for sticking to the repayment plan, the debtor could be allowed to keep their valuable non-exempt assets. Regular income includes wages or commission earned through employment, overtime, bonuses, occasional income, or child support payments.

The Chapter 13 Bankruptcy Process

When a debtor files for chapter 13 bankruptcy, they will generally propose a three-to-five-year repayment plan subject to approval by the bankruptcy court. In the repayment plan, the debtor agrees to pay off part or all of their debt with future income. Chapter 13 bankruptcy can be a means to:

• Avoid foreclosure
• Catch up on delinquent car or mortgage payments
• Pay back taxes
• Prevent additional charges from accruing on tax debt
• Keep valuable non-exempt property

If you stick to the terms of your repayment plan, all your remaining dischargeable debt will be erased at the conclusion of the plan. The amount that the debtor will have to repay is determined by various factors, including:

• Monthly income
• Amount of income that is considered disposable – the difference between monthly earnings and the amount reasonably necessary to support a household
• Money necessary to pay for administrative expenses, the best interests of creditors test, and other obligations

Contact an Experienced Birmingham, Al Chapter 7 Bankruptcy Attorney

If you are not eligible for chapter 7 bankruptcy, chapter 13 could be a viable option for you. Contact the Birmingham bankruptcy lawyers at the Bond & Botes Law Offices online or call 1-877-581-3396 to set up your free initial consultation today.