Northeast Alabama Chapter 13 Bankruptcy Attorneys
Chapter 13 Starting at $0 Down. We’ve Helped Over 3,000 Northeast Alabama Clients Get a Fresh Start.
At Cobb Law Firm LLC, we genuinely care about our clients’ financial well-being and their path forward. Chapter 13 bankruptcy can feel overwhelming, but it’s also one of the most powerful tools available for getting your finances back on track. We offer Chapter 13 services starting at $0 down in most cases, along with flexible payment plans tailored to your situation. We keep our fees among the lowest in Northeast Alabama because we believe cost shouldn’t stand between you and a fresh start. Call us today to schedule your free consultation.
What Is Chapter 13 Bankruptcy?
Chapter 13, sometimes called a wage earner’s plan, is designed for individuals with a regular income who want to keep their property while repaying all or part of their debts over three to five years. If your current monthly income falls below the applicable Alabama state median, your repayment period is generally three years. If it exceeds that threshold, the plan generally runs five years unless the court approves otherwise. Self-employed individuals and those operating unincorporated businesses may also be eligible, though corporations and partnerships may not file under this chapter. Before filing, you must complete a credit counseling course approved by the court within the six months prior to your filing date.
Ready to explore your options? Call our Chapter 13 bankruptcy attorneys at (256) 733-6102 for a free consultation.
The Debt Repayment Plan
Chapter 13 requires you to file a repayment plan with the court that identifies which creditors will be paid and how much. The bankruptcy trustee collects your payments and distributes them to creditors according to the plan, so you generally won’t have direct contact with creditors during this period. Unsecured creditors such as credit card companies are typically paid through the plan at zero percent interest, and in many cases you repay only a portion of your total unsecured debt.
Once you complete all plan payments, you may be entitled to a discharge that releases you from most debts addressed in the plan. Certain exceptions apply, and we can walk you through every requirement related to the discharge process.
Who Qualifies for Chapter 13 in Northeast Alabama?
To qualify for Chapter 13, you need a reliable source of income sufficient to fund a repayment plan. Debt limits also apply: both secured debts such as mortgages and car loans and unsecured debts such as credit cards and medical bills must fall below the thresholds set by the Bankruptcy Code. If a prior bankruptcy was discharged within certain timeframes, your eligibility to file again may be restricted.
Chapter 13 may be the right fit if you are facing any of the following:
- Behind on mortgage payments and facing foreclosure
- Behind on car payments and facing repossession
- Subject to wage garnishment
- Being sued by a creditor
- Struggling to manage multiple monthly debt payments
Chapter 13 may also be preferable to Chapter 7 if you have assets you want to keep, don’t pass the Chapter 7 means test, or have mortgage arrears you need to cure over time.
We’ve been serving Northeast Alabama since 2007 and know the local procedures and trustees in the Eastern Division of the U.S. Bankruptcy Court for the Northern District of Alabama, which handles cases from Calhoun, Cherokee, Clay, Cleburne, DeKalb, Etowah, Marshall, St. Clair, and Talladega counties. Contact us for a free consultation to find out whether Chapter 13 or Chapter 7 is the right path for your situation.
What Sets Us Apart
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$30,000,000+ in debt gone!
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3,000+ trusted clients.
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30+ years of experience.
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File Debt relief bankruptcy starting at $575.
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File debt consolidation bankruptcy with $0 down.
Why File Chapter 13?
Chapter 13 offers several advantages that Chapter 7 simply can’t. It allows you to save your home from foreclosure by catching up on missed mortgage payments over the life of the plan while continuing to make your ongoing payments as they come due. It can also protect your vehicle from repossession and may allow you to reschedule the secured debt at a lower interest rate than your original loan, which can reduce your monthly payment.
Unsecured debts such as credit cards and medical bills are typically paid through the plan at zero percent interest, and in many cases you repay only a fraction of what you owe. When the plan is complete and all payments have been made, remaining eligible balances may be discharged.
Automatic Stay Protection
From the moment you file, the automatic stay under 11 U.S.C. Sec. 362 generally halts most collection actions against you and your property, including lawsuits, wage garnishments, foreclosures, and repossessions. That means creditor calls can stop, and you have breathing room to focus on your repayment plan. Keep in mind that 11 U.S.C. Sec. 362 does list certain actions the automatic stay doesn’t cover, such as child custody proceedings.
About 30 days after filing, you’ll attend a 341 Meeting of Creditors, where the bankruptcy trustee asks questions about your finances. The meeting typically takes only a few minutes, and we prepare you thoroughly beforehand so you know what to expect.
Let Cobb Law Firm LLC Help You Regain Your Financial Freedom
We’ve helped over 3,000 clients across Northeast Alabama eliminate more than $30 million in debt, and we’re deeply familiar with the process in the Northern District of Alabama. As a family-run firm led by a father-daughter duo, we’ve built our practice around something simple: treating every client with dignity, keeping costs low, and helping you feel supported throughout the process. We’ve earned the Avvo Clients’ Choice Award, but the feedback we value most comes from clients who walked out of our office with a plan and a sense of relief. Learn more about who we are at Cobb Law Firm LLC.
Put a Cobb on the job. For the lowest cost of representation in the region, contact our firm at (256) 733-6102 to discuss your next steps during a free consultation.