Chapter 13 Bankruptcy

WHAT is CHAPTER 13 BANKRUPTCY?

In addition to allowing any Auburn or Opelika resident to keep valuable assets, Chapter 13 bankruptcy also provides a number of other benefits. For instance, it can help stop foreclosure proceedings and prevent the repossession of a vehicle or other secured property. Additionally, Chapter 13 bankruptcy may allow debtors to catch up on missed mortgage or car payments over the course of their unique repayment plan.

Another key advantage of Chapter 13 bankruptcy is that it can provide relief from certain types of debts that are not dischargeable under Chapter 7 bankruptcy, such as tax debts and student loans. While these debts cannot be eliminated through bankruptcy, Chapter 13 can provide a structured repayment plan that makes them more manageable.

In order to qualify for Chapter 13 bankruptcy, someone struggling with debt in Auburn or Opelika must have a regular income and debts below a certain threshold. Once a repayment plan is established and approved by the court, the debtor must make regular payments to a bankruptcy trustee, who will then distribute the funds to creditors according to the terms of the plan. Successful completion of the repayment plan can result in the discharge of remaining eligible debts, providing a fresh financial start.

WHAT TO EXPECT WHEN FILING FOR CHAPTER 13 BANKRUPTCY?

Filing for Chapter 13 bankruptcy can be a complex process, but our experienced attorneys are here to guide you every step of the way. 

The Chapter 13 Bankruptcy Process:

• Assessment of Eligibility: Our experienced attorneys will evaluate your financial situation to determine if Chapter 13 bankruptcy is the right option for you. We'll review your income, assets, and debts to ensure you meet the eligibility criteria for bankruptcy.
• Filing the Petition: Once eligibility is confirmed, we'll help you prepare and file the Chapter 13 bankruptcy petition with the court. This document outlines your financial situation and proposed repayment plan.
• Repayment Plan: With our guidance, you'll develop a repayment plan based on your income and expenses. Once approved by the court, you'll make regular payments to a bankruptcy trustee, who will distribute the funds to creditors.
• Counseling and Education: Before your repayment plan is confirmed, you'll need to complete a credit counseling course. Additionally, debtors must attend a financial management course during the bankruptcy process.
• Plan Confirmation: Once your repayment plan is confirmed by the court, you'll begin making payments to the trustee. Successful completion of the plan can result in the discharge of remaining eligible debts, providing you with a fresh financial start.

From assessing your eligibility to developing a personalized repayment plan, we will ensure that you understand your rights and options throughout the process. Our team will negotiate with creditors on your behalf, protect your assets, and help you achieve a fresh financial start.