A lot of people throughout Huntsville and northern Alabama want to file Chapter 13 bankruptcy because they’re behind on their house payments. They’re afraid they’re going to lose it in a foreclosure. So what we do in a Chapter 13 is put how much the client is behind by in this case, and then they would start making their regular payments again the very next month. That would allow them to not lose their home.
The same principle goes for a vehicle. If the client is behind on their car payments, then we would put their whole vehicle into the case, and we would have them pay off the vehicle through this case by making one payment a month for a set period of time. The court lets you pay that money back between 3-5 years.
If you have a lot of secured debt then we would ask for as much time as we can get to pay it back. If you have more unsecured debt then we would try to get you in a 3-year payback plan. Both are good options, so really it just depends on your circumstances.
Overcoming debt can feel like an overwhelming prospect, but my law firm is here to help. If you need a bankruptcy lawyer in Huntsville, Alabama or a neighboring area, please don’t hesitate to reach out and schedule a free consultation.