Debtors who are no longer able to pay their bills may have their debts discharged in bankruptcy. Birmingham bankruptcy attorney, A. B. Dunning, LLC, offers two types of Bankruptcy services to its clients: Chapter 7 and Chapter 13. Chapter 7 is a liquidation of the debtor’s estate minus the exemptions allowed to the debtor under Alabama law. Chapter 13 provides the debtor a period of time (usually three but may be up to five years) to pay down his or her debt by making monthly payments based upon the debtor’s disposable income.
If you need to file bankruptcy, the last thing you need to worry about is how to pay a large bankruptcy attorney’s fee. I am proud to offer clients some of the most affordable Bankruptcy attorney fees in the Birmingham area. With Individual Chapter 7 services available for $850, you can finally afford your fresh start.
Chapter 7 bankruptcy allows consumers to permanently discharge their debts in as little as 4 months. The process begins by determining your eligibility. Eligibility for Chapter 7 is based on whether your earnings are below the median household income for a household of your size. Even if your income is above the median income, you still may qualify depending on your disposable monthly income.
The next step is to determine your assets. Only a limited amount of your assets are protected from liquidation in Chapter 7 bankruptcy. The amount of your property which may be exempt (your exemptions) is based on a number of factors such as when your debt was incurred. Even if some of your property will be sold to pay off the debt, Chapter 7 may still be the best alternative for you. Don’t pay $1,500 and up for Chapter 7, call me and let’s get you started on the road to financial recovery.
The next step is to determine which of your debts can be discharged in your Bankruptcy. Most consumer debts can be discharged but student loans and past due taxes can only be discharged under limited circumstances.
The final step is to file your petition and appear at the meeting of creditors. If you need to re-affirm any debts such as car loans or home mortgages in order to keep that property, you will need to do this as well.
This chapter allows Individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor’s current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period “for cause.” (1) If the debtor’s current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years. 11 U.S.C. § 1322(d). During this time the law forbids creditors from starting or continuing collection efforts.
Chapter 13 offers a number of advantages over liquidation under chapter 7. Chapter 13 offers individuals an opportunity to save their homes from foreclosure.as long as they make all mortgage payments during the chapter 13 plan on time. It allows individuals to reschedule secured debts and extend them over the life of the chapter 13 plan. Chapter 13 may also protect co-signers. Chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a Chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under chapter 13 protection.
The first step in a Chapter 13 bankruptcy is to gather a list of all creditors and the amounts and nature of their claims; the source, amount, and frequency of the debtor’s income; a list of all of the debtor’s property; and a detailed list of the debtor’s monthly living expenses, i.e., food, clothing, shelter, utilities, taxes, transportation, medicine, etc.
The next step is to file a repayment plan with the petition or within 14 days after the petition is filed. The plan must be submitted for court approval and must provide for payments of fixed amounts to the trustee on a regular basis. The debtor must begin making payments according to the plan within 30 days of filing the petition.
Once the plan is approved, the debtor must to continue making payments under the plan on time until any remaining debts are discharged.
Start your Chapter 13 Bankruptcy with no Birmingham Bankruptcy attorney, Adrian Dunning will start working and file your Chapter 13 for an initial fee of $500. You can spread the rest of the attorney fee and the filing fee over your monthly payments. While the total attorney fee is significantly more, the ability to spread this cost and the filing fee out over time means you don’t have to wait to stop annoying creditors, garnishments, and foreclosures. Don’t wait, call today!