Facts about filing Chapter 13 Debt Consolidation:
Filing Chapter 13 means that you will pay back a certain percentage of your debt in a Court approved payment plan over a 36, 48 or 60 month period. Chapter 13 is preferred by Debtors who have excess equity in their assets, such as a home or a car, that is over the allowed exemption ($15,000 for your home, $7500 for your personal property per person in Alabama) which they wish to keep. This is possible because under Chapter 13, a Debtor proposes to propose a plan over a period of up to 3-5 years during which the Debtor can catch up past due mortgage arrearage on the home, reduce car payments, pay back taxes and child support.
Chapter 13 is different from Chapter 7 since the Debtor can remain in possession of his past due house, automobile and child support payments. Also unlike Chapter 7, the Debtor does not receive an immediate discharge of his debts. He must complete the payments required under the plan before he receives his discharge. Once filed, Chapter 13 protects the Debtor from Lawsuits, Foreclosures, Repossessions and Garnishments. Chapter 13 also allows the Attorney to reduce the payments on loans such as automobile and furniture loans by modifying the payment and interest rate over the life of the plan. The discharge is also considerably more extensive (more debts such as taxes and child support are eliminated) than the discharge under Chapter 7. The filing of a Chapter 13 can stay on your credit report for up to 7 years. The filing fee to file a Chapter 13 is $310. Another advantage in hiring the Loris Law Firm is that the attorney fees are set and paid by the Bankruptcy Trustee. We are comfortable being paid through the plan, so we do not require any attorney fees up front, as most other law firms do!
Facts about filing Chapter 7 Straight Bankruptcy:
Filing Chapter 7 means that all of your unsecured debts are completely wiped out, except for specific types of debts (some types of taxes, secured debts, child support, criminal restitution and gambling debts).
Chapter 7 Debtors have little or no non-exempt property to be distributed. Chapter 7 is appropriate for people that have a lot of unsecured debt, such as credit cards and medical bills, or in situations where they wish to surrender and walk away from a house or automobile and receive a "Fresh Start". Filing a Chapter 7 case is a quick process and the Debtor usually receives a discharge within 90 days after the petition is filed. The filing of a Chapter 7 can stay on your credit report for up to 10 years. The filing fee to file Chapter 7 is $335. We set our attorney's fees during the free initial consultation, depending on how complicated the Chapter 7 case is and how much debt is discharged.
The Loris Law Firm is one of the few law firms in the State of Alabama that allows monthly payments plans on Chapter 7 Cases!
We understand times are tough, we will work with you in every way possible to set up a monthly payment plan that meets your budget, so that you can receive your "Fresh Start"!
If you have questions regarding your current debt situation, do not hesitate to call any one of our three Alabama offices or submit your online information request today. Our discussions and your information are held in strict confidence.
Mobile & Eastern Shore (251) 432-3100
Central Baldwin (251) 945-3100
All Other Areas (800) 576-3328