Filing Chapter 13 Bankruptcy
Let Birmingham Lawyer Paula Greenway Reduce Your Debt by Filing Chapter 13 Bankruptcy
If you have both significant debts as well as significant assets, or if you are behind on your mortgage, car payment or child support, filing Chapter 13 bankruptcy can protect your assets and give you time to reduce your debt to a manageable level. At Greenway Law, LLC, in Birmingham, Alabama, we offer a free initial consultation to discuss your case and determine if Chapter 13 bankruptcy is the best solution for your debt problems.
Chapter 13 Bankruptcy Is a Debt Repayment Plan
Chapter 13 bankruptcy is a debt restructuring plan. But unlike so-called credit counseling plans that promise to reduce your debt, filing Chapter 13 bankruptcy offers you the full protection of the federal court to put an immediate stop to repossessions, home foreclosure* and creditor harassment.
Chapter 13 bankruptcy allows you to restructure your debts and pay them over a three- to five-year period. Secured debts such as home or car loans must be repaid at 100 percent, but many times the interest rate on car loans can be reduced through the plan, thus reducing your monthly payment. However, unsecured debts such as credit card or hospital bills may be paid back from zero to 100 cents on the dollar, depending on your individual situation.
To be eligible to file Chapter 13 bankruptcy, you must have a regular source of income. However, you do not have to be employed. You can file if you receive child support, alimony, unemployment, family support or Social Security Disability (SSD).
Expenses such as back child support can be put into a Chapter 13 repayment plan. Certain types of loans can be renegotiated, and sometimes you can reduce the amount of interest you pay on automobile loans, often paying no interest on a portion of the car loan, depending on how long you have owned the vehicle.
Free Consultation With a Bankruptcy Lawyer
To discuss Chapter 13 bankruptcy with attorney Paula Greenway, call 205-324-4000 or fill out our simple contact form. We are located in Birmingham, Alabama, across from the downtown YMCA.
Learn more about Chapter 13 bankruptcy.
* If you have had two or more bankruptcy cases dismissed, your protection from home foreclosure or repossession is not as great.
