Many people who fall behind on their financial obligations are hesitant to file for bankruptcy because they fear losing their most valuable property in the settlement. Others believe that they won't qualify for bankruptcy protection if they still have a steady income. However, the law provides several programs to help people in a variety of situations, including Chapter 13 bankruptcy. Let Dothan's trusted bankruptcy and disability attorneys at The Gil Law Firm explain how this particular plan functions so you can decide whether a Chapter 13 might be best for you.
Unlike the more familiar Chapter 7 bankruptcy, in which all or part of your unsecured debts are erased, a Chapter 13 is a reorganization that allows you to pay your debts without the risk that some of your assets may be sold to pay your creditors. In a Chapter 13, the court creates a payment plan, usually lasting three to five years, which allows you to catch up with your past due accounts, while keeping your home, car, and other possessions.
In some cases, the court may decrease the amount you owe and discharge some of your debts upon completion of the payment plan. Declaring bankruptcy also puts an immediate stop to any foreclosure activity and creditor harassment, giving you peace of mind while you get your finances back on track.
If your unmanageable debts are taking over your life, visit The Gil Law Firm online or call (334) 673-0100 to schedule a consultation with an experienced attorney today.