Alabama Bankruptcy Attorney

Bankruptcy Law - Chapter 7, 11 and 13

Mobile, Al / Gulf Coast   


Chapter 13 Bankruptcy 

     Chapter 13 bankruptcy is a debt adjustment procedure for individuals with regular income, who have unsecured debts under $269,250 and secured debts under $807,750.  The Debtor

     The debtor files a bankruptcy petition with schedule of assets and liabilities and statement of financial affairs, along with a Chapter 13 plan. The plan provides for repayment of the debtor's debts over a 3-5 year period, from the future earnings of the debtor. A trustee is appointed to receive payments from the debtor and disburse them to creditors. The debtor remains in possession of all of his property, exempt and non-exempt. Upon completion of payments under the plan, the debtor typically receives a discharge, even if he has paid less than 100% of the debt. Certain debts, however, must be paid in full to be discharged, such as:

  • Certain child and spousal support debts
  • Restitution orders and criminal fines
  • Debts caused by the debtor’s drunk driving
  • Most student loans
  • Recent taxes

     The debtor attends a meeting of creditors. Creditors are not entitled to vote on the plan, but are allowed to file objections to the plan if they believe that the plan does not comply with Chapter 13 requirements.

Creditor Payments

     Creditors will receive differing amounts of money under a Chapter 13 plan, depending on the nature of Chapter 13 Bankruptcy the debt, i.e., whether priority, unsecured non-priority, or secured. Priority debt typically includes recent taxes (generally less than 3 years old), and certain spousal and child support claims. Unsecured non-priority debts include older income taxes (generally, more than 3 years old), credit card debt, medical bills, personal loans, and any deficiency claims. Secured debts include real estate mortgage loans, car loans, and furniture and jewelry loans.

     These payments are made by the debtor making payments to the trustee, and the trustee then making disbursements to the creditors.

Contacting Us      For more information concerning corporate bankruptcy or other related legal matters in the State of Alabama, Attorney Kathryn McCord is available for consultation. To set up an appointment, please feel free to call 251-555-1212 or email her office at

Kathryn Jeanne McCord                               315 5th Ave                               Mobile, AL 36611
Tel: 251-555-1212                                           Fax: 251-555-1214                                           Email:

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