A breakdown of Chapter 13 bankruptcy from David S. Clark, an Opelika-based personal bankruptcy attorney.
If you’re facing overwhelming debt but still have a steady income, Chapter 13 bankruptcy might be your best option. At the law office of David S. Clark, we help guide individuals through all types of personal bankruptcy, including Chapter 13 and Chapter 7 bankruptcy.
As an experienced Opelika bankruptcy attorney, David S. Clark knows that financial hardship can feel impossible to overcome. Chapter 13 bankruptcy can offer a feasible solution, giving you peace of mind and a real path forward. Here’s what you need to know.
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.
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What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is often called the “wage earner’s plan.” Unlike Chapter 7, which wipes out certain debts quickly, Chapter 13 allows individuals to reorganize their debt and pay it off over time, usually three to five years.
This form of personal bankruptcy allows you to catch up on missed mortgage payments, keep your home, and avoid repossessions of your vehicles. Instead of losing your assets, Chapter 13 bankruptcy gives you a structured plan to repay creditors based on your income and what you can afford.
If you’ve been told bankruptcy means giving up everything you own, understand that Chapter 13 bankruptcy offers a different approach, allowing you to protect what matters most.
Who Qualifies for Chapter 13?
Not everyone qualifies for Chapter 13 bankruptcy. To qualify, you must:
- Have a regular income
- Have unsecured debts (like credit cards or medical bills) under a certain limit
- Be up to date on tax filings
- Complete mandatory credit counseling
It is also critical to have a bankruptcy attorney who understands the process from start to finish. At our Opelika law firm, we walk you through eligibility and help you decide whether Chapter 13 is right for your financial situation ot if another path, such as Chapter 7 or even Chapter 9 bankruptcy, makes more sense.
What Happens When You File?
Upon filing for Chapter 13 bankruptcy, the court will put an automatic stay on your debts. This means:
- Creditors must stop contacting you
- Foreclosures and repossessions are paused
- You get some breathing room to regroup and reassess your financial situation
Then, you and your attorney will propose a repayment plan based on your income and expenses. The court and your creditors must approve this plan. Once your Chapter 13 bankruptcy plan is in place, you make a single monthly payment, often lower than what you were paying before, until your plan is complete.
After that, any remaining eligible debts may be dismissed.
Why Work with a Local Opelika Bankruptcy Lawyer?
Bankruptcy law isn’t a one-size-fits-all. Every case is different. Working with a trusted bankruptcy attorney in Opelika ensures:
- You get personalized advice based on Alabama law
- Your paperwork is filed correctly and on time
- You avoid unnecessary delays
- You’re represented if creditors challenge your plan
At the office of David S. Clark, we’ve helped hundreds of people in Opelina, Auburn, and surrounding areas regain control of their financial futures through Chapter 13 bankruptcy and other solutions. We take the time to listen, explain your options, and support you every step of the way.
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Chapter 13 bankruptcy is not a failure. It is a strategy for recovery. If you’re falling behind on mortgage payments, juggling too many credit card balances, ot simply need a structured way to get out of debt, it may be the best choice for you.
And if you’re comparing options, including Chapter 9 bankruptcy or other forms of personal bankruptcy, we’re here to help you make an informed decision.
If you’re ready to take the next step toward financial recovery, don’t wait. Reach out to David S. Clark, a trusted Opelika bankruptcy lawyer with years of experience handling Chapter 13 bankruptcy cases. Call our office or fill out our online form to schedule a consultation and let us help build a plan that works for you.
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.
