Many households in the Wetumpka, AL area have suffered through difficult financial circumstances during the past few years due to the financial crisis and the recession. As the economy has recovered, some families have recovered financially. However, many people still have a lot of debt that they can never repay. Unfortunately, some of those people are not eligible to file for chapter 7 bankruptcy due to high income. Fortunately, it is possible to get financial relief and to become debt free with a chapter 13 bankruptcy with the help of a bankruptcy attorney in Wetumpka, AL
Chapter 13 bankruptcy is more difficult to get through than chapter 7. With chapter 13 bankruptcy, it is necessary to enter into a payment plan that will last from three to five years depending on whether or not the consumer’s income is greater than the state median income. After the repayment plan has been completed, the bankruptcy filing will result in all remaining debts being discharged. Those who have a lot of debt will end up with a lot of debt discharged even though five years of repayment has occurred. That is why chapter 13 bankruptcy is often worthwhile. If income drops due to job loss or other reason, the repayment plan will be adjusted accordingly. Some people may end up with a repayment plan that doesn’t require much money after a job loss. There are a number of other requirements that need to be met such as attending credit counseling and filing for taxes. The bankruptcy attorney in Wetumpka, AL will go over the requirements to make sure clients meet them.
One of the few advantages of chapter 13 bankruptcy is that it may be possible to keep property such as a car or a home. However, the consumer needs to pay at least the value of the non-exempt property to creditors in order for this to become a viable option.
Those who decide to file for chapter 13 bankruptcy wonder if it is really necessary to hire legal counsel. In 2005, bankruptcy reforms were enacted that made it much more difficult for consumers to file for bankruptcy on their own without the assistance of attorneys. Because there are so many complicated requirements to meet in order to successfully file for bankruptcy, it is necessary for consumers filing for bankruptcy to hire lawyers such as Courtney & Mann LLP.
