Understanding Chapter 13 Debt Consolidation
When it gets difficult to control your debt, you may be in need of other solutions to help with paying what you owe. One option is filing bankruptcy to create a plan that gives you a more manageable way to take care of your debt. Bankruptcy comes in many forms based on a person’s financial situation. One of the common categories is Chapter 13 for people who want a payment plan to pay back their creditors. Prior to exploring this option, you should get the help of Mobile Alabama debt consolidation attorneys. An Alabama bankruptcy lawyer at the Loris Law Firm will help you get started with the application process.
Chapter 13 Bankruptcy
This category of debt consolidation creates a plan for a person in debt to repay the money they owe in a fixed time frame. Chapter 13 bankruptcy, lasting from three to five years, requires a monthly payment to a trustee of the lending institution. Once all payments have been made, the bankruptcy cases typically result in a discharge of the debt.
In order to start Chapter 13, a person has to qualify for it. These qualifications include:
•Having unsecured debt less than $394,725
•Having secured debt less than $1,184,200
•Receiving credit counseling
Before you can begin the process, a Mobile Alabama debt consolidation attorney will review your information to determine if you qualify.
Chapter 13 Petition
Once an Alabama bankruptcy lawyer has determined that you qualify, a petition will be drafted with the necessary supporting documents. After the petition is submitted, you will be notified of the decision and the next steps.
If you want to learn more about Chapter 13 debt consolidation and what it entails, contact the Loris Law Firm. We specialize in helping clients with bankruptcy and can explore the available options with you.