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Chapter 13 Bankruptcy

Jan 17
0

A Guide to Chapter 13 Repayment Plans

By | Chapter 13 Bankruptcy, Financial Tips | No Comments

What is a Chapter 13 bankruptcy repayment plan? What would mine look like?

According to Statista, in 2021, Alabama had the highest personal bankruptcy filing rate in the United States, with 296.44 per 100,000 inhabitants filing for bankruptcy. 

Typically, when it comes to personal bankruptcy, there are two types: Chapter 7 and Chapter 13. While these may fall under the same umbrella, there are a few key differences when it comes to their distinctions. 

More specifically, Chapter 13 bankruptcy is also called the “wage earner’s plan”. This is usually a more desirable avenue for debt relief than Chapter 7 because it enables a customer to keep certain valuable assets out of a creditor’s reach. The debtor then proposes a plan with a help of a bankruptcy attorney to repay creditors over a reasonable period of time.

Here is a guide to Chapter 13 repayment plans for any Auburn or Opelika resident looking to file Chapter 13 bankruptcy from David S. Clark, an experienced bankruptcy attorney in Alabama. 

What is the Chapter 13 Repayment Plan

The Chapter 13 repayment plan is a legal document that establishes how to pay back creditors, typically over 3 to 5 years. Once your unique plan is drawn up, a bankruptcy judge and any creditors will have a chance to assess and possibly challenge any part of your repayment. Once confirmed, you’ll follow the plan and pay back any and all debt over the allotted time. 

While it is possible to create your own repayment plan, the process can be extremely complicated, plus without detailed knowledge about Chapter 13 bankruptcy, presenting your plan to the bankruptcy judge can result in failure. 

That’s why it is best to work with an experienced bankruptcy lawyer, who can ensure your repayment plan meets all requirements and has your best interests at heart. 

DISCLAIMER: The following blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.

Need Bankruptcy Help? Call David S. Clark

Differences in Debts, Differences in Repayment 

Unfortunately, creating a repayment plan is not as easy as placing all your debts in one box with a bow on top. Generally, your debts will be split into three different categories in your Chapter 13 bankruptcy repayment plan.

Priority Debts

Aptly named, priority debts are the debts that must be paid off during a Chapter 13 repayment plan. These can include a number of types of debt but a few examples include the taxes you owe, the cost of filing for bankruptcy, and child/spousal support payments. 

Secured Debts

Secured debts are backed by a home mortgage, auto loan, business equipment, inventory, or any other type of collateral. Depending on the foundation around the secured debt, you could be required to pay back the value of the collateral or the full payment of the debt.

Unsecured Debts

Unsecured debts typically come in the form of medical bills, credit cards, or unsecured personal loans. These debts are typically last on the list in terms of Chapter 13 repayment, which means that it’s totally possible for creditors not to be paid in full and these debts are “discharged” at the end of your plan. 

David S. Clark – Auburn and Opelika Chapter 13 Bankruptcy Attorney

When it comes to Chapter 13 repayment plans, every plan is unique. That’s why having a dedicated Chapter 13 bankruptcy attorney can not only help establish the best repayment plan for you but do so with your best interests at heart. 

David S. Clark is an Auburn and Opelika, Alabama bankruptcy attorney that understands the complex nature of Chapter 13 bankruptcy. For more information, contact David S. Clark today! 

DISCLAIMER: The above blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.

Nov 02
0

Is a Bankruptcy Attorney Necessary?

By | Bankruptcy Law, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy | No Comments

Bankruptcy can give you a fresh start when you are under the weight of overwhelming debt. Yet, much like any legal matter, the process of bankruptcy can be confusing.

Bankruptcy can give you a fresh start when you are under the weight of overwhelming debt. Yet, much like any legal matter, the process of bankruptcy can be confusing. You can file the case without legal help, known as going pro se, but the expertise of an experienced bankruptcy attorney is unmatched. 

Here’s how to decide if you need a bankruptcy lawyer and what to expect from David S. Clark, a bankruptcy attorney based in Opelika, Alabama. 

Different Types of Bankruptcy

While there are many types of bankruptcy, when filing as an individual, cases often fall under either Chapter 7 or Chapter 13.

Chapter 7, also known as a straight or liquidation bankruptcy is designed for Auburn or Opelika residents who are unable to pay monthly debt payments. In every Chapter 7 Bankruptcy case, the court assigns an impartial case trustee that faces your debtors for you. Ultimately, these appointed trustees aren’t working to make money for the creditors or to make your debts magically disappear. They seek the best route forward for both parties.

In a Chapter 13 bankruptcy case, also called a wage earner’s plan, the court approves a repayment plan that gives you a period of a reasonable amount of time to pay off your debt. This is usually a more desirable avenue for debt relief than Chapter 7 because it enables you to keep certain valuable assets out of a creditor’s reach. 

DISCLAIMER: The following blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.

Need Bankruptcy Help? Call David S. Clark

What’s The Point of a Bankruptcy Lawyer?

When it comes time to file for bankruptcy, it can seem like everyone is against you. A dedicated bankruptcy lawyer, like David S. Clark, seeks to not only fight for you but also to relieve the overwhelming aspects that often come with a bankruptcy case. 

Almost like a tour guide, a bankruptcy attorney can advise you about matters such as: 

  • Whether bankruptcy is a smart move or not
  • Which type of bankruptcy to file
  • How every step of the bankruptcy process will work
  • Details on the elimination of debt depending on the chapter of bankruptcy you file
  • Any and all paperwork as well as further discussions with creditors

It can be tempting to handle every step of bankruptcy alone, but just because you file for bankruptcy doesn’t mean your debt magically disappears. Without an experienced lawyer, you may make legal mistakes that carry long-term financial consequences.

David S. Clark, More Than Your Bankruptcy Attorney

Filing for bankruptcy is a significant decision, yet, as mentioned, it doesn’t mean the end of your finances forever. David S. Clark is an Opelika-based bankruptcy attorney who has helped countless Alabama residents find freedom from the weight of immense debt. 

Whether you are seeking to file for Chapter 7 or Chapter 13 bankruptcy, David S. Clark can help you every step of the way. For more information, contact David S. Clark today!

DISCLAIMER: The above blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.

Nov 03
0

Bankruptcy Helps: “Buy Here, Pay Here”

By | Chapter 13 Bankruptcy | No Comments

Chapter 13 Bankruptcy can get your car turned back on. 

Every year thousands of Alabamians decide to buy used cars from car dealerships that are commonly called “buy here, pay here” dealerships.

For car buyers whose credit isn’t good enough for a traditional loan or they simply don’t have any existing credit, the messaging from these dealerships can create an almost irresistible allure to buy a car from them.

        “No credit, no problem!”                     “Down payments as low as $500!”                             “Buy here, pay here!”

DISCLAIMER: The following blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.

Need Bankruptcy Help? Call David S. Clark

Many residents of Auburn and Opelika, AL buy cars from these dealerships at a moment that they have a small pile of extra cash lying around. However, whenever the time to make payments on the loan comes around, buyers realize that the interest rate on their loan is ridiculously high.

The creditors at “buy here, pay here” car dealerships know that the individuals that they sell to are often going to be unable to finish making payments on the cars that they buy. So, many times creditors will install a GPS tracker or what’s called a “starter interrupter” in cars that they financed.

If debtors fail to make a payment, the car dealership will initiate the “starter interrupter” and shut the car off until they receive payment on the loan.

Chapter 13 Bankruptcy Can Get Your Car Turned Back On

Automatic Stay Orders

Whenever debtors file for Chapter 13 Bankruptcy, the court imposes an injunction to creditors that prevents them from taking any further action on you or your car. This injunction is called an “automatic stay.”

Modified Car Loan Payments

After the injunction is issued, you still may not be able to repay the original loan amount.

Depending on the restructuring of your debt under your Chapter 13 Bankruptcy plan, you may be able to avoid returning your car to the dealership by making smaller payments. This will help you keep your car while still making payments on the loan.

Chapter 13 Bankruptcy Protects You From Creditors

Sometimes debtors unfortunately still have to return their cars to the dealerships under Chapter 13 Bankruptcy. However, with Chapter 13 Bankruptcy, there is a real opportunity for you to be able to keep your car.

Chapter 13 Bankruptcy protects you from sitting helplessly at the mercy of creditors. In the case of “buy here, pay here” car purchases, Chapter 13 Bankruptcy protects you from the car dealership you bought your car from.

David S. Clark is a bankruptcy attorney in Opelika and Auburn, AL who has been helping clients keep their cars through Chapter 13 Bankruptcy for years.

Contact David S. Clark today for a free bankruptcy consultation!

DISCLAIMER: The above blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.