Bankruptcy doesn't have to be something bad.
It can actually be the start of something good.
Your situation is unique, and it's personal.
Your attorney should be as well.

Chapter 13 Repayment Plan

The primary difference between Chapter 13 and Chapter 7 bankruptcy is that Chapter 13 includes a repayment plan to deal with debts, while Chapter 7 simply discharges many debts in return for the liquidation of property. In order to complete Chapter 13, a debtor must set up a repayment plan that follows the law and reasonably provides that debtor the chance to pay back what they owe. Thus, a successful Chapter 13 filing is dependent on the debtor having a stable source of income.

For a free consultation and legal advice that could help you determine if Chapter 13 is right for you, contact Birmingham Chapter 13 bankruptcy attorney Paula Greenway today by calling (205) 324-4000.

Chapter 13 Repayment Plan Factors

When setting up a repayment plan, there are several factors that the courts take into consideration before agreeing to permit the bankruptcy to go forward. While Chapter 13 is less punitive in terms of collecting on properties, it also requires additional work to go into the planning and preparation phases, as a single missed payment could jeopardize the entire bankruptcy. The following are some common characteristics of a Chapter 13 repayment plan:

  • Priority debts must be paid prior to the activation of the repayment plan
  • Secured debts and late fees must be included
  • Disposable income may work towards paying unsecured debts
  • Average length of payment relates to average income

A Chapter 13 repayment plan must be taken very seriously and properly carried out by the bankruptcy filer. A late or missed payment can lead to cancellation of the bankruptcy filing.

Contact Us

If you are considering filing for bankruptcy, contact Birmingham Chapter 13 bankruptcy lawyer Paula Greenway at (205) 324-4000 today to discuss your situation.

"When I had my power cut off because I just didn't have the money to pay the power bill, a friend suggested I call Paula Greenway. From the moment I walked in her office I felt like a burden was lifted from my shoulders."
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I can't tell how comforting it is to know your attorney is working on your case. I would and have recommended their service to friend and associates."Ed H.
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Greenway Bankruptcy Law, LLC
505 20th St N #1220
Birmingham, AL, 35203
Phone: (205) 324-4000
Tuscaloosa: (205) 737-3350
Gadsden: (256) 467-6650

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Greenway Bankruptcy Law, LLC All rights reserved. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. The following language is required pursuant to Rule 7.2, Alabama Rules of Professional Conduct. No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

Greenway Bankruptcy Law, LLC 505 20th St N #1220, Birmingham, AL, 35203 | Phone Number: (205) 324-4000