Please scroll down this page to view the various answers to the frequently asked questions concerning, CH 13
Debt consolidation.
DO I NEED TO PAY ANY MONEY UP FRONT?
Most clients who have a regular source of income will be able to file a debt consolidation petition without paying any
attorney's fee or filing fee up front. The attorney's fee is approved by the court and paid out of the monthly plan payments.
CAN I KEEP MY HOUSE AND STOP FORCLOSURE?
If a client is behind on their house payments they can stop the forclosure by filing a CH13 debt consolidation case. The
client would be able to add their back house payments to the CH 13 case and pay their back house payments over a
period of up to 60 months. The client would however continue to make the regular monthly mortgage payment outside the
case.
CAN I PREVENT VEHICLE REPOSESSION WITH CH13?
A person can file a CH13 debt consolidation case and prevent vehicle reposession. When the case is filed the vehicle/s will
generally be added to the case and paid for entirely through the case over a period of up to 60 months. Often the amount
owed on the vehicle and the intrest rate being charged by the creditor can be reduced during the CH13 case by filing a
motion to value the car and objection to the intrest rate..
CAN I KEEP MY FURNITURE AND OTHER HOUSEHOLD ITEMS?
Generally most furniture and other household items are exempt up to $3000 if filing individually and $6000 if filing jointly
and therefore would be retained by the client . If an item is secured by a creditor the item can be paid for in the CH13 case
or if avaliable a motion can be filed in certain cases to wipe out that creditors secured claim.
CAN LAWSUITS BE STOPPED?
Filing a CH13 debt consolidation case prevents any lawsuits from being filed or judgments taken against you. When a client
files a debt consolidation case and a lawsuit is pending, it can go no further. If a judgment has been taken, its enforcement
can go no further unless allowed by the bankruptcy court.
CAN GARNISHMENTS BE STOPPED?
After a CH13 case is filed a motion is filed that immediately stops garnishments from continuing.
CAN TAX DEBTS BE STOPPED?
Income tax debts over three years old will usually be wiped out with other unsecured debt if the tax returns were filed
promptly. Other taxes that are not wiped out can be paid in the CH13 case over sixty months, usually without additional
penalties or intrest charges.
After a Ch13 case is filed, the IRS cannot garnish your wages, seize your bank account, close your business, perfect a tax
lien or take any other collection effort.
The following language is required pursuant to Rule 7.2, Alabama Rules of Professional Conduct. No representation is
made that the quality of legal services to be performed is greater than the quality of legal services performed by other
lawyers.This web site is designed for general information only. The information presented at this site should not be
construed to be formal legal advice nor the formation of a lawyer/client relationship.