Declaring bankruptcy does not always erase all debt. The chapter 7 may do so. But, the chapter 13 does not. It allows someone to pay off past debt over time. They must, however, earn enough income to finance their current living expenses as well as pay off the past debt. A qualified Knoxville chapter 13 attorney will help to retain your home and vehicle.
The chapter 13 is frequently referred to as a reorganizational bankruptcy. Your income must be proven sufficient to the court before you can file. You may be required to go through a credit counseling course before approval. It is at the discretion of the federal court.
You can find an attorney experienced in this branch of the law to guide you through the procedure. When someone is in financial distress, making good decisions is difficult. Your lawyer can help you in doing what is in your best interest.
Use a no-obligation meeting to decide if you want to work with the attorney. You will find out if you are likely to be eligible and have your petition accepted. You want an attorney who will take the time to talk to you now, and return your phone calls during the repayment period.
After your bills are gathered an amount will be set for the monthly payments. The payments are made to a trustee of the court. He or she pays the creditors a specific amount each month. You may be granted three to five years to complete the payments.
You will be able to stop your home from being foreclosed on. A repossessed car can be reclaimed. The garnishments and harassing phone calls from creditors will be stopped. You must do the filing quickly. If you do not and your vehicle has been resold, you will not be able to reclaim it.
You can catch up on car and house payments when allowed to keep them. The other outstanding bills, credit card debt and medical bills for example, are handled in a different way. You may pay a lowered interest rate on them.
You will benefit because all interest is stopped on the date your case is accepted in federal court. You are allowed to pay back taxes, alimony and child support over time. A few debts may be erased and others may accept partial payment.
Corporations are not eligible to file a chapter 13 bankruptcy. It is limited to consumers and some small businesses. This path offers a manageable and fair chance to clear up the debt owed in a manner that is done over a three to five year length of time.
The chapter 13 is frequently referred to as a reorganizational bankruptcy. Your income must be proven sufficient to the court before you can file. You may be required to go through a credit counseling course before approval. It is at the discretion of the federal court.
You can find an attorney experienced in this branch of the law to guide you through the procedure. When someone is in financial distress, making good decisions is difficult. Your lawyer can help you in doing what is in your best interest.
Use a no-obligation meeting to decide if you want to work with the attorney. You will find out if you are likely to be eligible and have your petition accepted. You want an attorney who will take the time to talk to you now, and return your phone calls during the repayment period.
After your bills are gathered an amount will be set for the monthly payments. The payments are made to a trustee of the court. He or she pays the creditors a specific amount each month. You may be granted three to five years to complete the payments.
You will be able to stop your home from being foreclosed on. A repossessed car can be reclaimed. The garnishments and harassing phone calls from creditors will be stopped. You must do the filing quickly. If you do not and your vehicle has been resold, you will not be able to reclaim it.
You can catch up on car and house payments when allowed to keep them. The other outstanding bills, credit card debt and medical bills for example, are handled in a different way. You may pay a lowered interest rate on them.
You will benefit because all interest is stopped on the date your case is accepted in federal court. You are allowed to pay back taxes, alimony and child support over time. A few debts may be erased and others may accept partial payment.
Corporations are not eligible to file a chapter 13 bankruptcy. It is limited to consumers and some small businesses. This path offers a manageable and fair chance to clear up the debt owed in a manner that is done over a three to five year length of time.
About the Author:
Cameron S. Schippers is a retired paralegal that helped individuals through the process of filing for bankruptcy for 15 years. He has a deep understanding of the Bankruptcy code. To learn more about Johnson City Chapter 7 Law he suggests you click here for more information.