Reviewing Chapter 13 With A Bankruptcy Law Firm In Prattville, AL

by | Aug 9, 2019 | Lawyers


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In Alabama, the court follows stipulations defined in the 2005 Bankruptcy Act for processing and approving bankruptcy claims. The legislation defines how the means test is conducted and what exemptions are available according to the claimant’s filing status. A Bankruptcy Law Firm in Prattville AL helps consumers review chapter 13 bankruptcy.

Qualifying for Chapter 13

The claimant must have an annual income that exceeds the median for their household size. The attorney calculates the claimant’s income through income statements or tax documents. The income is compared to the current chart for median household income. If the claimant qualifies, the consumer or business is approved for a chapter 13 bankruptcy claim.

Prerequisites of Bankruptcy

All claimants filing for bankruptcy are required to complete a credit-counseling course. The course is state-approved, and the claimant must bring their certificate of completion to their attorney. Additionally, the meeting of creditors is hosted, and the court determines what debts are included in the claim. Creditors have the right to refuse inclusion of their account.

Creating a Repayment Plan

The claimant works closely with their attorney and creates a structured repayment plan. The court reviews the plan according to current bankruptcy laws. It must include all debts approved for the bankruptcy and show how the claimant pays off the debts in under five years. Once approved, the claimant submits payments through the court.

Following All Obligations of the Bankruptcy Case

Claimants follow all obligations outlined in their plan. Any failure to comply leads to early discharge of the bankruptcy case. Early discharges terminate the automatic stay and restore the creditor’s ability to file legal claims. Any violation of the terms of the case, including missed payments or using disposable income inappropriately leads to a discharge of the case.

In Alabama, bankruptcy courts review all claims for eligibility and adherence to the law. Attorneys help claimants create a structured and comprehensive plan for chapter 13. The plans must follow all applicable laws and include a majority of the claimant’s debts. Residents who want to learn more about filing and need the help of a Bankruptcy Law Firm in Prattville AL contact David Weston Attorney At Law right now.

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