A Birmingham bankruptcy attorney from our team at Jaffe & Erdberg can answer your questions about debt relief. If you are struggling to make ends meet and you are considered about your financial future, it may be time to consult a lawyer who understands your options and can help.
Our firm brings a rich history from a family of lawyers—from grandfather to father to son. We have a legacy of legal excellence that brings a collective 80+ years of experience and insight to every case we handle. While each individual's financial situation is unique, one need stays constant in their case: hard work. We know that our clients need us to work hard on their behalf to achieve a favorable resolution to their legal matter.
Chapter 13 bankruptcy is sometimes called a "wage earner's plan." If you are an individual who has a regular income but you have fallen behind on your debts, filing Chapter 13 bankruptcy could give you the fresh start you need. Under Chapter 13 bankruptcy, you would be able to reorganize your debts into a workable payment plan that is carried out over a period of several years-typically between three and five.
In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act was passed, which established a "means test" that would prevent certain individuals from discharging their debt by filing Chapter 7 or liquidation bankruptcy. This means test ensures that people stay honest and do not file for liquidation bankruptcy if they have the means, income, or assets to pay their debts.
If you are unable to pass the means test and are therefore not qualified to file for debt relief under Chapter 7 of the Bankruptcy Code, it is likely you will still qualify for Chapter 13 bankruptcy. Chapter 13 bankruptcy allows you to restructure your debt, giving you more time to repay what you owe and the opportunity to start fresh. Bankruptcy laws and qualifying factors are complicated. Speaking with a Birmingham bankruptcy lawyer is the best way to get answers to your questions.
Call Jaffe & Erdberg now for answers and counsel: Dial (205) 333-3333 and arrange a free consultation with our caring team!