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Chapter 13 (Debtors Court)

Chapter 13 is commonly called Debtors Court here in the Birmingham, Alabama area.  Debtors Court is a court approved repayment plan. It is basically a debt consolidation.  You consolidate your debts into one easy payment and a court appointed trustee will distribute the money to your creditors.  This almost always results in a lower total monthly payout to your creditors.

In almost all cases, it reduces your total debt and leaves you with a little more spending money at the end of the month.

Debtors Court is about giving you a second chance to save your home, vehicles, furniture, appliances, and personal belongings, among other things.  Debtors Court is particularly helpful if you are behind on your mortgage or car payment.  This is because it will stop the foreclosure of your home and the repossession of your vehicles.  It also allows you to save your wages from garnishment since creditors are not allowed to garnish your wages once you file a Debtors Court case.

In almost all cases, interest stops accruing on unsecured debts.  Also, in most cases, the interest rate on car notes will be lowered.

Automatic Stay

The automatic stay is a powerful federal law which provides that no one may take any action against you once you file a Debtors Court case.  This means that a creditor cannot harass you with phone calls or letters, garnish your wages or bank accounts, repossess your vehicle, file a lawsuit against you, or foreclose on your home.

Timing is very important with regard to handling these matters.  In order for you to take advantage of the automatic stay, the sooner you contact us, the better we can provide you with relief.

Qualifying for Chapter 13 Debtors Court

Debtors Court is a good option for people who have some form of income but are finding it difficult to stay current on their monthly bills.  In order to file a Debtors Court case, you need some source of income.  However, you do not necessarily have to be employed.  You can fund your Chapter 13 plan with Social Security benefits, retirement or pension benefits, unemployment benefits, or even contributions from friends and family members.

Benefits of Debtors Court:

  • Stop creditor harassment, garnishments, repossessions, lawsuits, foreclosures, collection calls and letters
  • Catch up on mortgage payments
  • Reduce car payments
  • Lower interest rates on most bills; in fact, the interest rate will go to zero on most bills
  • Keep your property and belongings
  • Consolidate bills and lower your monthly payments
  • Reinstate your driver’s license

A Chapter 13 Debtors Court case is complicated and it is important that you have an experienced Birmingham Debtors Court attorney to help you through this complex process.  The Biddle Law Firm will help you during each part of the process.  We will give you quality legal representation for a reasonable price.  We offer affordable and flexible payment plans.  We have helped countless clients consolidate their debts through Debtors Court.