Filing for Chapter 13 Bankruptcy in Alabama
Bankruptcy Attorneys in Huntsville | Crumbley, Blackwell, Wisda & Associates, P.C.
If you are a consumer that is stuck in a mountain of debt, you may be considering filing for bankruptcy. There are two chapters that consumers may file under: Chapter 7 (liquidation bankruptcy) and Chapter 13 (reorganization bankruptcy). Chapter 7 is designed for persons who have little to no income, and allows for debt discharge after non-exempt property is liquidated and creditors are paid. Chapter 13 bankruptcy, on the other hand, allows debtors to keep their property in exchange for the payment of debts over a period of three to five years.
Most people are eligible for Chapter 13 bankruptcy; however, there are exceptions:
- Irregular income or low income (file for Chapter 7 instead)
- High debt burden
- No income tax returns for any of the past four years
To show your income, you may use wages, pension payments, and any other type of government benefits including spousal or child support, royalties or rent, and commission. Speak with our Huntsville bankruptcy attorneys to find out if you are eligible for Chapter 13 bankruptcy.
Repayment Plan for Chapter 13 Bankruptcy
Developing your Chapter 13 plan can be quite complicated. There are certain debts that must be paid back first, while others can be repaid partially. To create an effective plan, discuss your options with an experienced bankruptcy attorney at our firm. We can educate you about the process and come up with a plan that can maximize your assets and help you get out of debt.
The first and most important debts to be paid off are priority debts. These include employee wages, taxes, child support, and alimony. Next, secured debts need to be paid; these are any debts that have been secured by your property such as a home or car. Lastly, unsecured debts are paid with whatever disposable income is left.
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Are wondering if you will need an attorney to file for bankruptcy? Discuss your case with our team of bankruptcy attorneys. We can analyze your situation and discuss your options.
To speak with a local bankruptcy firm with nearly 50 years of combined legal experience, call our Huntsville bankruptcy lawyers at Crumbley, Blackwell, Wisda & Associates, P.C. We are more than happy to discuss your situation and recommend an effective plan of action. Give us a call at (256) 539-4464 or submit an online case evaluation form to receive your free consultation. Don't wait until it is too late, obtain the legal services of our experienced Huntsville lawyers today.