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560 S. McDonough St., Suite A Montgomery, AL 36104

(334) 269-0269

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INFORMATION ABOUT CHAPTER 13 BANKRUPTCY

At Carly B. Wilkins, P.C., we recognize the misconceptions that continue to exist regarding the new bankruptcy laws. Clients have many concerns and even more questions. We represent clients who are in need of debt relief through Chapter 7 or Chapter 13 bankruptcies, and communicate to them the minimal impact of the new laws. Listed below are various bankruptcy resources for your review. They will help you get beyond the misconceptions and straight to the facts related to bankruptcy. If you have additional questions that are not answered by this page, please contact our office for a free initial consultation at (334) 269-0269.

Chapter 13 – An Overview

You may be in a situation where the bills are stacking up, you are receiving demanding calls and letters with increasing frequency, and despite the best of efforts, the overdue debts just cannot be paid. In such cases, filing bankruptcy under Chapter 13 of the Bankruptcy Code may provide a solution to what seems like an insurmountable problem. Once considered a last resort, bankruptcy has evolved into an accepted method of resolving serious financial problems. If you are facing serious financial challenges, it is important to seek the counsel of an experienced bankruptcy attorney to determine whether filing under Chapter 13 is right for you.

Bankruptcy law provides two basic forms of relief: (1) liquidation and (2) rehabilitation or reorganization. Most bankruptcies filed in the United States involve liquidation, which is governed by Chapter 7 of the Bankruptcy Code. A reorganization or rehabilitation bankruptcy under Chapter 11 or 13 of the Bankruptcy Code is, however, the option often preferred by the courts. Under Chapters 11 and 13, creditors may be provided with a better opportunity to recoup what they are owed.

Debts that Remain After a Chapter 13 Discharge

A Chapter 13 discharge affects only those debts provided for by the plan. Any debts not provided for in the plan will remain, and the debtor will have to pay them in full, even after discharge. Additional exceptions to a Chapter 13 discharge include, generally, claims for spousal and child support, educational loans, drunk driving liabilities, criminal fines and restitution obligations, and certain long-term obligations, such as home mortgages that extend beyond the term of the plan. A lawyer experienced in bankruptcy law can explain which debts are dischargeable as a result of a Chapter 13 discharge, and which will remain the obligation of the debtor.

Effects of a Salary Increase on a Wage-Earner Plan Under Chapter 13

When a Chapter 13 debtor enters into a wage-earner plan, he or she commits the next three years’ disposable income, that portion of the debtor’s income not required to meet the necessary needs of the debtor and his or her dependents, to the repayment of debt. Often, a debtor’s income will increase after the plan is in place, and the question arises as to what becomes of this increase in income. Experienced bankruptcy lawyers like Mrs. Wilkins can answer these and other Chapter 13 questions as they arise, providing information, reassurance, and competent and zealous advocacy throughout the bankruptcy process.

If you would like more information about a Chapter 13 bankruptcy, please contact Carly B. Wilkins at (334) 269-0269.

Chapter 13 Resource Links

United States Bankruptcy Courts

The official Web site of the United States Bankruptcy Courts includes a variety of useful information about bankruptcy.

Bankruptcy Glossary

This Web site includes a glossary on bankruptcy terminology that explains, in layman’s terms, many of the legal terms that are used in cases filed under the Bankruptcy Code.

Bankruptcy Fees

This Web page, maintained by the Administrative Office of the US Courts on behalf of the US Courts, contains the fees associated with a bankruptcy filing under a particular chapter.

Bankruptcy Forms

This Web site, maintained by the United States Bankruptcy Courts, includes Official Bankruptcy Forms, Procedural Forms and the Bankruptcy Forms Manual. All forms and instructions are available in PDF format.

Chapter 13 Basics

This Web page provides general information about individual debt adjustment under Chapter 13 of the Bankruptcy Code.

Experienced Insights From Montgomery Business Bankruptcy Attorneys

While Chapter 11 bankruptcy is a good solution for some businesses, it is not the best fit for many others. Companies that wish to stay in business can also enter into voluntary work-out negotiations with its creditors. Our Chapter 11 bankruptcy attorneys get to know how your company operates in order to reach the best possible outcome. We will work with you to fix your immediate concerns and help decide what bankruptcy option works best — or if filing for bankruptcy is even necessary. To schedule a free initial consultation in which we can assess your situation and provide a recommendation on the next steps to take, call (334) 269-0269.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.