For a lot of Olympics fans, hearing that Natalie Hawkins filed for Chapter 13 bankruptcy was big news. The mother of two-time Olympic gold medalist Gabby Douglas, Hawkins declared that she was “not embarrassed” to say she had filed for Chapter 13 bankruptcy, and that doing so had allowed her to get through a difficult financial situation without losing her house or her car.
But what is Chapter 13 bankruptcy? A difficult economy has made such filings commonplace for many Americans, yet even some people who may be considering Chapter 13 bankruptcy are unclear on what it is. If you’re a resident of Montgomery, AL with high debt, who is considering filing for bankruptcy, there are some good reasons to consider Chapter 13 bankruptcy as a possibility.
Chapter 13 bankruptcy is a payment plan for individuals who have a regular source of income. It allows them to design a plan with their creditors which will help them repay all or part of their debts. If you have a stable income but are currently unable to pay some of your debts, Chapter 13 bankruptcy may be the right answer for you. If you’re experiencing a temporary financial crisis, Chapter 13 bankruptcy can allow you to keep your property while you repay your debts according to a repayment plan approved by the court.
Chapter 13 bankruptcy can also offer some advantages over Chapter 7. For one thing, under Chapter 13 bankruptcy, if you’re unable to make the necessary payments to discharge your debts according your court-approved plan, you may still discharge your debts under Chapter 7 liquidation. If you own an unincorporated business, you are still allowed to own and operate that business under a Chapter 13 plan. A Chapter 13 bankruptcy may also allow you to prevent unpaid mortgage payments from accelerating, making Chapter 13 bankruptcy more attractive for some Montgomery, AL homeowners in certain cases. Chapter 13 bankruptcy is similar to a debt consolidation plan as well; however it also protects you from car repossession, home foreclosure and harassment by creditors.
It is estimated that Gabby Douglas will earn about $10 million from endorsements and appearances related to her Olympic success. It’s probably safe to say that her mother won’t need to worry about money again anytime soon. If you’re burdened with high debt, however, and don’t have a child competing in the Olympics, Chapter 13 bankruptcy may be the right answer for you. With the help of a Montgomery, AL bankruptcy attorney, you can find out what your legal options are for starting down the path to get rid of your debt.
If you’re looking for a bankruptcy attorney in the Montgomery, AL area, contact David Weston, Attorney At Law has been helping Montgomery, AL residents with debt relief cases for over years.
