What is Chapter 13 Bankruptcy and How Do I File For It In Alabama?

Wattsville, AL–If you’re an individual who earns a regular income, you may qualify to file for Chapter 13 bankruptcy in Alabama. Chapter 13 bankruptcy is often recognized as the “wage earner’s plan” as it allows you to file for bankruptcy protection even when you still have a steady paycheck coming in (1).

To find out if you qualify for Chapter 13 bankruptcy, begin searching for attorneys near me so that a bankruptcy lawyer can start assessing your situation to determine if your circumstances qualify you to file for bankruptcy.

How does Chapter 13 bankruptcy work in Alabama?

Whether you work for someone else or are considered self-employed, you may qualify to file for Chapter 13 bankruptcy. Unlike other types of bankruptcies, Chapter 13 bankruptcy allows you to create a repayment plan to satisfy some or all of your unpaid debt using your income.

The amount you earn shall not only be used to determine how much each of your bi-weekly or monthly payments will be but also the duration for which your repayment plan shall last.

For instance, if your income is less than the applicable state median, your payment plan will likely last three years. Should it be higher than the applicable state median, then your payment plan is likely to extend five years.

If you’re not able to settle all of your unpaid debt and it isn’t exempt from discharge, then you may no longer be required to pay the remaining balance once you successfully go through the bankruptcy process. In the event you have debt that does not qualify for discharge (i.e. unpaid child support, certain types of student loans, etc.), then you may still be required to settle this debt after emerging from bankruptcy.

How to file for Chapter 13 bankruptcy in Alabama?

If you want to file for Chapter 13 bankruptcy, there are a few steps you will need to take.

Contact a local Wattsville, AL bankruptcy lawyer first to be sure you qualify for bankruptcy. When consulting with a lawyer, be sure to ask if now is a good time for you to file or if you should wait.
Whether you decide to hire an Alabama bankruptcy attorney or not, you’ll need to complete a credit counseling course before initiating the process.
Once you complete your credit counseling course and receive a certificate of completion, you’ll then need to gather the required paperwork and file it with your local bankruptcy court.
Once your bankruptcy case starts, you’ll then be assigned to a trustee who will assist you through the case.

It’s worth noting that a trustee is not the same as a bankruptcy lawyer. The trustee isn’t concerned with your interests or protecting your assets. Therefore, we do recommend you retain a Wattsville, AL bankruptcy lawyer who will be sure that you follow all the requirements laid out by the court and avoid costly mistakes.

To get connected with a bankruptcy lawyer now, contact Hill, Gossett, Kemp & Hufford, P.C. or call 800-672-3103 to find out how you can schedule a free consultation with an attorney in your area.

Disclaimer: No representation is made that quality of legal services provided is greater than the quality of legal services provided by other attorneys.

Hill, Gossett, Kemp & Hufford, P.C. can be reached at:

Moody Office

2603 Moody Parkway, Suite 200

Moody, Alabama 35004

Phone: (205) 640-2000

Website: www.hwhlawgroup.com

Leeds Office

7900 Parkway Drive

Leeds, AL 35094

Phone: (205) 699-5500

Springville Office

6441 U.S. Highway 11