Navigating Chapter 13 Bankruptcy in Birmingham
Finding oneself in a financial bind is never an easy situation to deal with, but the road to recovery may be less arduous than you might think. For individuals with regular income who find themselves unable to repay all their debts but can still afford to pay a portion, Chapter 13 bankruptcy might be the lifeline you need.
Popularly known as the 'wage earner’s plan' or 'debtor's court', Chapter 13 bankruptcy presents a valuable opportunity for individuals to develop a court-approved repayment plan that covers all or some of their debts. Unlike Chapter 7 bankruptcy, which involves asset liquidation, Chapter 13 enables individuals to retain their property while repaying their debts over an extended period - usually three to five years.
Some individuals might find Chapter 13 a more viable choice than Chapter 7 for various reasons. For example, Chapter 13 may allow the discharge of certain debts that are non-dischargeable under Chapter 7, such as some types of federal taxes.
Common situations where individuals opt for Chapter 13 bankruptcy include cases where:
They owe debts that cannot be discharged under Chapter 7, such as taxes, child support, or fraud judgments.
They have liens that are larger than the value of the assets securing the debt.
They have years of unfiled taxes.
They are behind on car or house payments.
Their assets are worth more than the available exemptions.
In Birmingham, the duration of a Chapter 13 repayment plan is determined by state-established income guidelines. For individuals earning below the state median income, the repayment plan could last for three years unless the court sanctions a longer payment period. However, if your income surpasses the state median, the plan's duration extends to five years.
Upon filing a Chapter 13 bankruptcy case, the court-protected repayment plan commences immediately. During this period, creditors are legally prevented from initiating or continuing their collection efforts outside the court proceedings.
As your bankruptcy attorney, Cindee Dale Holmes, a seasoned professional with 22 years of experience, can guide you through this complex process and help assess if Chapter 13 bankruptcy is your optimal path to financial relief. With her assistance, the court will set up a manageable repayment plan, reinstating your peace of mind and relieving your financial stress.
Finally, upon successful adherence to your repayment plan conditions, you'll be granted a full discharge of your debt. Even if the total debt amount has not been repaid, your financial slate will be clean, and with Cindee's support, the harassing collection calls will cease once and for all, restoring your self-esteem and setting you on the path to a better financial future.
Don't hesitate to reach out for the help you need - contact Cindee Dale Holmes, an experienced bankruptcy attorney, and begin your journey to a stress-free financial life.
