Filing Chapter 13 Bankruptcy

When you are struggling to pay minimum payments on your credit cards, your car payments are behind, and you can’t seem to pay your mortgage on time, a Chapter 13 bankruptcy may be perfect for you. Filing for Chapter 13 bankruptcy will help reorganize your debts and, as a result, you can be debt-free in 3-5 years.

Benefits of Filing for Chapter 13 Bankruptcy

The moment you file for chapter 13 bankruptcy,

  • As soon as you file for bankruptcy, you will no longer receive phone calls from collection agents. Notices that you continually receive in the mail will cease. You will be able to refer all of your creditors to the lawyer you have hired to handle your bankruptcy.
  • As you work to reorganize your debt with your chapter 13 bankruptcy lawyer, all actions that have been filed against you, including foreclosures, wage garnishments, and repossessions will also stop.
  • As part of your bankruptcy filing you will be able to cure the defaults on your mortgage and car payments.
  • Money that you owe to unsecured creditors such as credit cards and past medical bills can be reorganized, and you will owe less than you do now with a specific time period in which to pay back this debt.
  • Once you file for bankruptcy, your credit rebuilding begins.

Interest and penalties make your unsecured debt go quickly out of control. The amount you owe is generally far more than what you actually spent in the first place. When you file for Chapter 13 bankruptcy, part of reorganizing your debt sets the amount you will pay back, and the payments will be based in part on your ability to pay back your creditors.

Chapter 13 Bankruptcy Plan Requirements

If you filed for Chapter 13 bankruptcy, you must submit a repayment plan explaining how you plan to pay your debts and how much you plan to pay. Some of the requirements include:

  • The length of time the plan will last. If your income is below the median of your state, it will be for three years. If your income is above the median of your state, your repayment plan will last for five years.
  • A list of all creditors and whether you will pay them directly or through the trustee.
  • How much you will pay the trustee and whether the payment will be monthly or bimonthly.
  • What secured property, if any, will be surrendered. In order to keep the property, the plan must pay the creditor the present value of the secured property.
  • How much unsecured creditors would receive under a Chapter 7 liquidation bankruptcy. The reorganization plan must pay unsecured credits the amount they would have received under Chapter 7.
  • How you will pay the arrearages.
  • What contracts you want to assume and which ones you want to reject.
  • A statement that the plan has been made in good faith.

The plan must reflect a commitment to using all projected disposable income to pay off the creditors during the bankruptcy period. You also must show that your current income is sufficient to pay the trustee for your back debts as well as paying your ongoing secured debts like your mortgage or car loan.

Pay Off Your Debts in Chapter 13 Bankruptcy

Filing a Chapter 13 bankruptcy allows you the opportunity to get caught up on your debt by reorganizing your debt into a manageable repayment schedule. You will get caught up with your debts in a specific time period, anywhere from 3 to 5 years.

Debt consolidation offers are out there for people looking to get out of debt, but the promises made by debt consolidation companies can be false. It’s important to work with a local, reputable lawyer, who is monitored by a federal judge. All Chapter 13 decisions are binding on your creditors, and they can’t come after you for more money in the future.

When you make the decision to control your debt, it’s time to call a bankruptcy law firm that can help you. We understand that your circumstances are different from anyone else’s. That is why Bond & Botes chapter 13 bankruptcy lawyers give every client the personal attention they need and deserve. Make sure you know your rights and are prepared to make the important financial decisions that will give you a fresh start. Your initial consultation at our law offices is FREE.

Our Attorneys Can Help

When you come to meet with an attorney at our practice, you should bring all the financial information that you have. This includes all past due bills, bank accounts, back tax records and more. Your bankruptcy lawyer will have to take a careful look at your finances, and you may be asked to provide a significant amount of documentation in order for a chapter 13 bankruptcy to be filed.

Filing for chapter 13 bankruptcy allows you to take control of your financial future. Sometimes filing for bankruptcy is the best way to a more stable future. Instead of wallowing in paying credit card minimums and taking calls on a daily basis from creditors, it’s time to make a change that will give you a more stable financial foundation for your future.


Related Posts:

Can Bankruptcy Stop Foreclosure?

How Bankruptcy Can Help Provide Instant Relief

Repo Man Chasing You? How to Handle a Serious Auto Loan Delinquency

Will Filing Bankruptcy Affect Your Employment?

Chapter 13 Bankruptcy Do’s and Don’ts

Bond & Botes Law Offices

At Bond & Botes, we now offer full service bankruptcy consultation and filing over the phone or by video from the comfort and safety of your home or office. Please call 1-877-581-3396 or click here to setup your free phone or video consultation.

The lawyers at the Bond & Botes affiliated offices serve clients at offices in Anniston, Birmingham, Mobile, Montgomery, Opelika, Decatur, Huntsville, Florence, Haleyville and Gadsden, Alabama; Vicksburg, Hattiesburg and Jackson, Mississippi. Read our disclaimer here. You can view our Privacy Policy here.

Alabama Offices


2107 5th Avenue North
Age-Herald Building
Birmingham, Alabama 35203
Phone: (205) 802-2200

Shelby County Location
15 Southlake Lane, Ste 140
Birmingham, AL 35244
Phone: (205) 802-2200

Florence Location
121 S. Court Street
Florence, AL 35630
Phone: (256) 760-1010

Huntsville Location
225 Pratt Avenue NE
Huntsville, AL 35801
Phone: (256) 539-9899

Montgomery Location
311 Catoma Street
Montgomery, AL 36104
Phone: (334) 264-3363

Decatur Location
605 Bank Street
Decatur, AL 35601
Phone: (256) 355-2447

Haleyville Location
914 19th St.
Haleyville, AL 35565
Phone: (205) 486-3580

Gadsden Location
430-B Chestnut Street
Gadsden, AL 35901
Phone: (256) 485-0195

Opelika Location
216 South 8th Street
Opelika 36801
Phone: (334) 887-7666

Anniston Location
1302 Noble St #2C
Anniston, AL 36201
Phone: (256) 344-3559

Cullman Location
200 Second Avenue SW
Cullman, AL 35055
Phone: (256) 739-9866

Mississippi Offices

Jackson Location
120 Southpointe Dr., A
Byram, MS 39272
Phone: (601) 353-5000

Hattiesburg Location
607 Corinne St, Ste B8
Hattiesburg, MS 39401
Phone: (601) 353-5000

Vicksburg Location
1212 Farmer Street
Vicksburg, MS 39180
Phone: (601) 353-5000

© 2024 by Bond & Botes Law Offices. All rights reserved. Disclaimer | Privacy Policy