Birmingham Chapter 13 Bankruptcy Attorney
Guiding You Towards a Brighter Financial Future
No one ever wants to file for bankruptcy. That said, when one is overwhelmed by a vast sum of debt and cannot keep up with the payments, bankruptcy is often the key to resolving this issue. Unlike a Chapter 7 bankruptcy, a Chapter 13 bankruptcy allows debtors to hold onto valuable nonexempt property that might otherwise be lost. At Ingram Law, LLC, our attorney will provide the advice you need to make the right decision for your future.
How Does a Chapter 13 Bankruptcy Work?
A Chapter 13 bankruptcy is frequently referred to as a wage earner’s bankruptcy since debtors who file for this have enough disposable income to pay off some of their debts. Generally, if you are filing for this form of bankruptcy, it means your biggest issue is handling the demands of your creditors rather than a lack of income. Thankfully, when you file for a Chapter 13 bankruptcy, it will put a stop to phone calls and letters from your creditors, giving you some much-needed peace.
Although you will pay off much of your debts in a restructured payment plan, which will last for three to five years, some will take more priority than others.
Your debts will likely be separated into three categories:
- Priority debts: Debts like back taxes and spousal support must be paid off throughout the course of your repayment plan and will take priority above all other debts you owe.
- Secured debts: Your home mortgage or car loan are considered secured debts and, depending on the circumstances of these loans, you might also be required to repay the full amount of it.
- Unsecured debts: These debts, which include credit card bills and unpaid medical expenses, typically receive the lowest priority. If they are not paid in full by the end of your repayment plan, they will ultimately be discharged.
How Long Will a Chapter 13 Bankruptcy Stay on My Credit Report?
One of the biggest concerns for those considering bankruptcy is the length of time it will remain on their credit report. A Chapter 13 bankruptcy will take 7 years before it disappears from your credit report, compared to a Chapter 7, which takes 10 years. However, regardless of the type of bankruptcy you choose to file for, you can begin rebuilding your credit immediately. Keep in mind, you are more likely to restore your financial health through bankruptcy than you are by continuing to struggle with your debts, so it is well worth it in the grand scheme of things.
Schedule a Consultation with an Experienced Bankruptcy Attorney
Choosing to file for bankruptcy is a big decision, but it is not as scary as you might think. At Ingram Law, LLC, our Birmingham bankruptcy attorney can help you decide if this is the best move for you and guide you through every step of the process to ensure you are able to achieve the bright financial future you deserve.
Contact our law office today to discuss your case and get started on restoring your financial health.
Attorney Ingram is a Former District Attorney and has a successful track record.
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