|BENEFITS OF CHAPTER 13||POTENTIAL DRAWBACKS OF A CHAPTER 13|
|Allows you to keep your home and catch up on missed payments||Failure to make payments will result in your plan being dismissed
and creditors can resume collection activities
|Allows you to repay child support arrearage and tax debts through your plan||You must complete all payments under your plan’s time period to receive a discharge of your debts|
|Allows you to keep your vehicle and may be able to lower
monthly payments and interest rate
|You may not be subject to new debt without court approval|
|Stops collection activity by collectors||You may not sell or transfer property without court approval|
|Stops civil lawsuits and garnishments||You cannot discharge unpaid student loans, child support, or some unpaid taxes|
|You can pay your attorney fees through the payment plan instead of up front||A bankruptcy can remain on your credit for up to 10 years|
THE APPROPRIATE TYPE OF BANKRUPTCY
Personal bankruptcies include Chapter 7 (liquidation) and Chapter 13 (reorganization), and businesses include Chapter 7 (liquidation but no discharge of debts for businesses) and Chapter 11 (reorganization). Farmers and fishermen may also avail of Chapter 12 bankruptcy.
DISCHARGEABLE VS. NON-DISCHARGEABLE DEBTS
There are certain categories of debts that are not dischargeable, such as alimony, child support, most student loans, and fraudulent debts. Knapp & Associates can help you determine which of your debts are dischargeable in bankruptcy in order to decide whether to file or not.
There are certain statutory requirements that must be satisfied in filing for bankruptcy. These include mandatory credit counseling, notifications, pay stubs, a list of credits, schedules of assets, liabilities, and income, etc. Knapp & Associates can help you ensure that you fulfill all of these requirements.
AUTOMATIC STAY OF ALL COLLECTION ACTIONS
There is a comprehensive stay on all collection actions from the time of filing, and includes virtually all creditor collection activity including garnishments, liens on property, foreclosures, legal actions to collect, etc. If you are facing economic hardships, the attorneys at Knapp & Associates look forward to speaking with you so that we may work together to help you reclaim your future. If you are considering filing for bankruptcy, you should seek experienced legal counsel to help you make this very hard and extremely emotional decision.
Filing for bankruptcy in Tuscaloosa is a complex task, but can get even more complicated if someone files a lawsuit within your case, alias an adversarial proceeding. An adversary proceeding occurs when a Plaintiff files a lawsuit against a Defendant in the bankruptcy court in connection to a bankruptcy proceeding.
SOME POSSIBLE ADVERSARIAL PROCEEDING INCLUDES:
- A creditor challenging the discharge of a debt.
- A trustee can file an adversary proceeding to ask court to deny bankruptcy discharge.
- A trustee can file an adversary proceeding to recover preferential payments and fraudulent transfers.
- The debtor can file an adversary proceeding to sue creditors for violating bankruptcy protection.
- If you have filed for bankruptcy and have been served with an adversary proceeding, call The Knapp & Associates to speak with one of our expert attorneys to come up with a legal plan best suited for you.