Advantages of Filing Chapter 13 include:
- Chapter 13 allows you to pay only a portion of your attorney fee prior to the filing of your case. You do have to pay a minimum of $388 which covers certain costs and expenses.
- Chapter 13 means you do not have to be concerned about losing any of your property. In general, you can keep all of your property. If you have excess equity in your property, you will pay that value, over time, as part of your payment to the trustee.
- Chapter 13 allows you to cure arrearages owed on your home or cars. You must still make your regular payment each month but Chapter 13 gives you a way to pay the amount you are behind over a period of time.
- No interest is paid to unsecured creditors in a Chapter 13 case. This feature means that the amount you owe to unsecured creditors is fixed on the day of the filing of the case. You will not incur any further late fees, interest charges, over limit fees, or other charges.
- As with Chapter 7, the filing of a Chapter 13 case will stop your creditors from harassing you. You will finally be able to stop worrying about the phone ringing. It will also immediately stop all lawsuits and garnishments.
- You can protect someone who co-signed on a consumer loan with you. As long as you propose to pay the debt in full, the creditor cannot sue the co-debtor while you are in Chapter 13.
- In some circumstances you can lower your interest rate and/or your payment on your car loans. The bankruptcy code does not allow for the modification of your mortgage on your principal residence
As you can see, there are many advantages of filing chapter 13. I am Melinda Dionne and I have offices in Birmingham and Tuscaloosa, Alabama. As a bankruptcy lawyer with 28 years experience, I can explain all of your options to you. You will not be pressured to hire me or file a bankruptcy case at all. The call and the consultation will not cost you anything. Isn’t it time to find out how you can stop struggling with your debt?
How to Get Help and Get Out of Debt
Call me at 205-349-5911 (Tuscaloosa) or 205-453-1012 (Birmingham). When you call, tell me that you are a website reader and I will set you up with a free, no obligation, consultation to show you how I can help you start living again.