Start Fresh with a Chapter 13 Bankruptcy Lawyer in Montgomery AL

Anyone can get behind on bills or debts. One small emergency or unexpected bill can throw off a household’s entire budget. This can cause bills to get paid late, which can create late fees, higher interest rates, and other additional costs. This can make it more difficult for a person to get back on track. Before long, this debt has snowballed into an uncontrollable mess with creditors calling all the time. Fortunately, a Chapter 13 Bankruptcy Lawyer in Montgomery, AL can help.

Why Consider Bankruptcy?

Bankruptcy is not the right option for everyone. If it is possible to work with creditors to get debt under control, that may be the best option. However, there are occasions where bankruptcy is the only way to find a solution that can be afforded. Putting off the debt and letting it accumulate can create serious issues with harassment and low credit ratings. A low credit rating can make it difficult to get further credit. It can even be a hindrance when trying to get a new job or home.

What happens in Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is an option to allow debtors the chance to reorganize their debt. An agreement is made in the court system with the creditors to determine an affordable payment plan. This payment plan allows debtors to pay a certain amount over 3 to 5 years. This money is then distributed to the creditors as agreed upon in the court. Once the term has ended, the remaining debt may be discharged. This gives individuals the opportunity to gain control of their finances and restore their credit over time.

What is Chapter 7 Bankruptcy?

For those who have little or no income, chapter 7 bankruptcy provides an option for getting out from under difficult debt. For those who cannot make the payments in a reorganization of their debts and fall under certain income guidelines, they may actually be better off with this type of bankruptcy. For those that qualify, any non-exempt property is sold to pay off debt. Any remaining debt is discharged. This gives those with little income the opportunity to start with a clean slate.

It can be difficult to determine if bankruptcy is the right option. Fortunately, a Chapter 13 Bankruptcy Lawyer in Montgomery AL can help in this decision. Visit Davidweston.org for more information or to schedule a free consultation.

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