In Alabama, claimants start bankruptcy claims for the immediate benefits and protection. The cases initiate an automatic stay and stop foreclosure quickly. Consumers choose this chapter to pay off debts over time instead of selling assets. A Chapter 13 Bankruptcy Attorney in Tallassee AL can offer answers and guidance during the claims.
What are the Most Common Reasons for Filing for Chapter 13?
The most common reason for filing chapter 13 is to stop a foreclosure. However, consumers file to settle back tax payments, keep their primary home, and to catch up their existing mortgage payments. The court may discharge a larger portion of debts through chapter 13 than chapter 7.
What are the Eligibility Requirements for the Chapter?
The eligibility requirements for chapter 13 start with income restrictions. The claimant’s income level must be above the median income for their household size. The attorney reviews income statements for the last six months and calculates the claimant’s annual income.
Does Bankruptcy Reinstate the Original Agreement for the Debt?
Yes, as long as the claimant follows all rules of the claim, the original agreement is reinstated. The payments for the debt return to the previous value. However, the claimant pays off all overdue balances for the debt during the case.
How Long Do Chapter 13 Cases Last?
Typically, the chapter 13 case last about three years. However, claimants with a higher volume of debt could reap more benefits by extending it for five years. The attorney calculates the monthly payments based on a three or five-year plan. The most affordable option is chosen by the claimant.
What Conditions Apply to Disposable Income?
All disposable income is used to pay off debts that weren’t included in the claim. The court identifies the value of the disposable income by subtracting the bankruptcy payment from the income. Next, the total value of all monthly obligations is subtracted. The leftover balance is the disposable income of the claimant.
In Alabama, claimants hire an attorney to achieve the fullest benefits of bankruptcy. The cases are an effective way to manage the heavy burden of debt. Claimants who want answers now contact a Chapter 13 Bankruptcy Attorney in Tallassee AL through Courtney & Mann LLP today.