Chapter 13 bankruptcy is a way to reorganize debt and pay creditors in a manner that is more favorable to the debtor, such as lower to no interest rates. It is a restructuring process that allows a debtor to make payments on past due accounts while keeping most or all of their property.
A Chapter 13 bankruptcy allows a debtor to avoid foreclosure on a home or repossession of a vehicle. A Chapter 13 bankruptcy will last between three and five years. A Chapter 13 bankruptcy most benefits a debtor who is behind on their mortgage or car payments and is unable to bring these payments current but can not afford to allow these items to be repossessed. A Chapter 13 can also be helpful for a debtor that owes a large amount of back child support or back taxes owed to the IRS. The amount of debt required to be paid varies from debtor to debtor depending on their unique circumstances. Taking into account all of a client’s debts and applying the proper Bankruptcy Law is essential to determining how much, if any, a debtor must pay back to a particular creditor. There are many nuances to a Chapter 13 bankruptcy which is why it is best to contact an experienced attorney at Jennings and Messer in Anniston & Gadsden Alabama to assist you with determining if Bankruptcy is right for you.
If you need help with Chapter 13 bankruptcy, don’t hesitate to give us a call for a FREE consultation. We’re happy to help, and can get you started in the right direction. Get in touch!