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Back to Basics: Chapter 13 Bankruptcy

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David S. Clark takes you “back to basics” with a breakdown of Chapter 13 bankruptcy

Bankruptcy can be a daunting word, but it can also be the best way to regain financial control. If you’re an Opelika or Auburn, Alabama resident and seeking an escape from the weight of overwhelming debt, here is a quick and easy breakdown on Chapter 13 bankruptcy from David S. Clark, a Chapter 7 and Chapter 13 bankruptcy attorney in Opelika, Alabama. 

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 is Chapter 13 Bankruptcy?

Often referred to as a “wage earner’s plan”, Chapter 13 bankruptcy is a chapter of personal bankruptcy that allows individuals with an income to establish a plan to repay all or parts of their debt. This functions differently than Chapter 7, which involves liquidating certain assets, like a house or car, to pay off debts. Essentially, Chapter 13 allows you to keep your property and assets while consolidating your debt into monthly payments, typically over the course of 3 to 5 years. 

How Does Chapter 13 Work?

Before moving forward with Chapter 13 bankruptcy, it is essential to find a Chapter 13 bankruptcy attorney who understands your unique financial situation. Furthermore, a local Alabama bankruptcy lawyer will understand the often complex nature of bankruptcy, providing you with valuable information, encouragement, and help. 

So how does it work? Ultimately, when you file for Chapter 13 bankruptcy in Opelika, the process begins with a petition to the bankruptcy court. This is also where you must provide a detailed financial report that includes your assets, liabilities, income, expenses, and a proposed repayment plan.

As mentioned above, the repayment plan typically lasts between three to five years, with the exact timing depending on your income level. During this time, you will make monthly payments to a dedicated bankruptcy trustee, who then distributes the funds to your creditors according to the court-approved repayment plan. 

Who Qualifies for Chapter 13 Bankruptcy?

Unfortunately, this question isn’t as simple as it may seem. Bankruptcy is a complicated and unique option for every individual struggling with debt. So, it is crucial to talk to your dedicated Chapter 13 bankruptcy attorney about your options, and if you qualify for those options before moving forward. 

Benefits of Chapter 13 Bankruptcy

Filing for Chapter 13 bankruptcy in Auburn or Opelika, Alabama offers several key benefits:

  1. Asset Protection: Unlike Chapter 7, you can keep your home, car, and other assets while repaying your debts over time.
  2. Debt Consolidation: Chapter 13 consolidates your debt into one monthly payment, simplifying your finances and providing much-needed relief. 
  3. Foreclosure Prevention: Chapter 13 stops foreclosure proceedings, allowing you to catch up on your mortgage.
  4. Reduced Creditor Harassment: Once you file for bankruptcy, an automatic stay is put in place, preventing creditors from harassing you or attempting to collect debts.

Is Chapter 13 Right for You?

Much like the rest of this blog, this question requires time and effort to figure out. Yet, don’t be intimated by it! You don’t have to walk through this process of reaching financial freedom alone.

In conclusion, Chapter 13 bankruptcy is a powerful tool for those who are committed to repaying their debts but need more time or flexibility. David S. Clark is a bankruptcy attorney who not only understands the need for that flexibility but strives to fight alongside you. 

If you’re searching for a Chapter 13 bankruptcy attorney in Opelika, Alabama, look no further than David S. Clark. Ready to get started? Reach out to 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.

Navigating the Chapter 13 Bankruptcy Process

By Chapter 13 Bankruptcy No Comments

A guide to Chapter 13 bankruptcy

Are you facing overwhelming debt and considering Chapter 13 bankruptcy as a solution? Navigating the Chapter 13 bankruptcy process can be complex, but with the right guidance from a dedicated Chapter 13 bankruptcy attorney, you can regain control of your finances and pave the way to a fresh start. Here is a breakdown of the Chapter 13 bankruptcy process from David S. Clark, an experienced bankruptcy attorney in Opelika, Alabama.

Understanding Chapter 13 Bankruptcy

Before breaking down the process of Chapter 13 Bankruptcy, it is essential to understand what it is. Chapter 13 bankruptcy, often referred to as a “wage earner’s plan,” allows individuals with regular income to restructure their debts while keeping their property. Unlike Chapter 7 bankruptcy, which involves liquidating assets to pay off creditors, Chapter 13 creates a manageable repayment plan based on your income and expenses.

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

Initial Consultation and Evaluation

Prior to making any decisions, the first step in any bankruptcy process is an initial consultation and evaluation with a bankruptcy attorney. Spend time searching for the “best” attorney in the Auburn and Opelika area. Read reviews, look at their history, and choose a bankruptcy attorney who not only represents you but cares for you and your financial future. 

During the consultation, your dedicated bankruptcy attorney will evaluate your financial situation, discuss your goals, and determine if Chapter 13 bankruptcy is the right option for you.

Preparing and Filing the Petition

Once you and your Chapter 13 bankruptcy attorney have decided to proceed with Chapter 13 bankruptcy, you’ll work together to gather the necessary documentation, including income statements, tax returns, asset valuations, and a detailed list of debts. 

With these items, your bankruptcy attorney will prepare and file your bankruptcy petition with the bankruptcy court in Opelika or Auburn. 

Automatic Stay 

Worried about harassment from creditors? Thankfully, upon filing for Chapter 13 bankruptcy, an automatic stay goes into effect, halting creditor harassment, foreclosure proceedings, wage garnishments, and other collection actions. This can provide immediate relief from the constant calls, emails, and more that may come from a number of creditors. 

Developing a Repayment Plan

The next step in the Chapter 13 process comes in the form of a repayment plan. Essentially, your bankruptcy attorney will negotiate with creditors to establish manageable monthly payments based on your income and expenses. This plan typically lasts three to five years, allowing you to catch up on past-due balances while maintaining essential assets like your home and car.

Once your repayment plan is finalized, it must be submitted to the bankruptcy court for approval. If the court confirms your plan, you’ll begin making monthly payments to a court-appointed trustee, who will distribute funds to your creditors according to the terms of the plan. 

David S. Clark – Your Chapter 13 Bankruptcy Attorney in Opelika

Ultimately, while this is a guide on the Chapter 13 bankruptcy process, it is crucial to note that every bankruptcy case is different. Thankfully, with the guidance of an experienced personal bankruptcy attorney, you can overcome financial challenges and achieve long-term stability. If you’re considering Chapter 13 bankruptcy in Opelika, Alabama, don’t hesitate to reach out to David S. Clark for personalized assistance and support! 

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.

How Chapter 13 Bankruptcy Affects Your Credit Score

By Bankruptcy Law, Chapter 13 Bankruptcy No Comments

Bankruptcy affects your credit score. But what are the short and long term effects?

When considering filing Chapter 13 Bankruptcy, one of the most common questions asked is “how will filing Chapter 13 Bankruptcy affect my credit score?” In short, the answer is that filing Chapter 13 Bankruptcy will damage your credit score. However, even though filing Chapter 13 Bankruptcy will damage your credit score, it doesn’t have to permanently affect your financial well being. To truly answer this question, let’s break it down a bit more.

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 is the purpose of a credit score?

Credit scores are intended to show the likelihood of you paying your bills on time. Creditors use your credit score and credit report as some of their factors when determining whether or not to lend to you. Because the nature of Chapter 13 Bankruptcy means that you have been unable to repay all your debt in the past, it sends a negative message to creditors.

There are no two ways about it; filing Chapter 13 Bankruptcy is not good for your credit score. But, it is important to know that the negative impact of Chapter 13 Bankruptcy on your credit score is not permanent, and doesn’t have to keep you from improving your financial situation. 

How long is Chapter 13 Bankruptcy on my credit report?

The good news is that Chapter 13 Bankruptcy only stays on your credit report for 7 years. It is important to note that this does not mean your credit score will be damaged for 7 years. Usually, about 2 years after taking the initial hit from filing Chapter 13 Bankruptcy, your credit score will significantly increase, so long as you have financially responsible practices in place.

Even though the Chapter 13 Bankruptcy will remain on your credit report for 7 years, you will still be able to get credit. 7 years after the day you file Chapter 13 Bankruptcy, you will be able to contact the credit bureau and request your bankruptcy to be removed from your report. 

What effect does Chapter 13 Bankruptcy have on my credit score?

There is no set number of points that your credit score will drop by, because it depends on multiple factors like your current score and past negative items. Generally, the higher your current score, the higher the hit will be.

As you rebuild your credit score, you will still be able to receive credit. However, the effect of having a low credit score is that you will receive credit at a higher interest rate. 

How do I rebuild my credit score after Chapter 13 Bankruptcy?

The process of rebuilding your credit score after Chapter 13 Bankruptcy is essential. Practicing financially responsible habits like paying your bills on time is of utmost importance. There are also other practices that can help boost your credit score like using a secured credit card and keeping a low credit card balance. Read more about rebuilding after Chapter 13 Bankruptcy here.

David S. Clark, Your Auburn & Opelika Personal Bankruptcy Attorney 

Even though it can feel stressful and discouraging, filing Chapter 13 Bankruptcy is not the end for your credit score. Rebuilding your credit score is possible when you practice good financial habits. David S. Clark is an experienced bankruptcy attorney who understands the complications of life after bankruptcy. If you need help navigating Chapter 7 or 13 bankruptcy, 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.

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.

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.

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.