Mobile, AL Law Firm Handle Chapter 13 Bankruptcies

Alabama Bankruptcy Lawyers Represent Clients in Chapter 13 Bankruptcy

Chapter 13 bankruptcy permits an individual to pay some or all of what he owes his creditors over three to five years, depending upon the amount of their debt and income. In return for adhering to his repayment plan, a debtor may be allowed to keep valuable non-exempt property.

Only debtors with dependable income will be eligible to file for chapter 13 bankruptcy. This includes wages or commission earned through employment, but does not include overtime, bonuses, intermittent income, or child support payments received.

The Chapter 13 Bankruptcy Process

When a debtor files for chapter 13 bankruptcy, they typically suggest a three-to five-year repayment plan that must be approved by the bankruptcy court. The repayment plan offers to pay off all or part of his debt with future income. Chapter 13 bankruptcy can be used to:

• Stop foreclosure on a home
• Bring delinquent accounts current again
• Pay off back taxes
• Prevent interest from accruing on tax debt
• Retain certain non-exempt assets

If a debtor complies with the terms of the repayment plan, all their remaining dischargeable debt will be wiped out at the end of the plan. The amount that the debtor will be required to repay is determined by various factors, such as:

• Monthly earnings
• Disposable income – the difference between monthly earnings and the amount reasonably expended for maintenance and support
• Money needed to cover the bankruptcy’s administrative expenses, cure obligations, and meet the best interests of creditors test

Contact an Experienced Alabama Chapter 13 Bankruptcy Attorney

Are you considering filing for Chapter 13 bankruptcy? Contact the experienced Alabama bankruptcy lawyers Bond and Botes, P.C. online or call 1-877-581-3396 to set up your initial consultation today.