Real Cases for the Week of October 17th, 2013

Today we confirmed four Chapter 13 bankruptcy cases in the Southern District of Alabama.  One of them I’d like to talk about is Mandy Green.*

Mandy came to us with $12,400 of credit cards and $13,000 of state and federal income taxes. She has a small house that she has worked hard to keep and a car that she needs to get to work. She was current on her vehicle, so she didn’t really need help there – it was the IRS threats of imposing a tax lien that were really scaring her. We determined that Chapter 13 was the best route for her because Chapter 7 would have put her in danger of losing her home equity.

We designed a plan for her to pay off her car and get rid of her tax debts and credit cards in 5 years – for under $600/month. Before she came to our office, her car payment alone was over $500, and she had almost 5 years left on that auto loan. So for $100/month, Mandy was able to get rid of all of her taxes and credit cards in 5 years. She was very happy with that deal and now she can get back to working and living her life without fear of losing it all.


*Names were altered to protect client confidentiality.