When most people see that someone has declared bankruptcy it is assumed that all debt has been erased. That is basically true with a chapter 7 bankruptcy. However, there are other types. One is called a chapter 13. This is for people with a regular income who can afford to pay all their bills off over a five year period. They must also be able to pay their current living expenses. The Knoxville chapter 13 attorney helps retain your home and other property.
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.
The procedure will be complicated and your attorney will guide you through all the required steps. While you are in financial dire straits, making good decisions is difficult. An experienced lawyer will be understanding and offer the help you need.
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 analyzing all your debts a monthly payment amount will be set up. Payment will be made to a Chapter 13 Trustee, not the creditors. The trustee takes over paying the creditors a certain amount every month. You may take from three to five years to finish payments.
Once your case is accepted by the federal judge, all garnishments and collection phone calls from creditors will stop. You may stop your home from being foreclosed on. You may be able to get a vehicle back that was repossessed. Filing quickly makes it more likely that your car has not been resold. If it has, there is no way to reclaim it.
The house and car payments can be caught up on, thus allowing you to keep them. Other debts, such as medical bills, credit card debts and personal loans, are handled differently. You may be allowed to pay a lower interest rate on those debts.
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.
No corporations are eligible to file a chapter 13 bankruptcy. It is intended to help consumers and some small businesses only. This way to clear up all debt is fair to both yourself and the creditors who will be repaid. It is an equitable way to settle all your outstanding debt.
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.
The procedure will be complicated and your attorney will guide you through all the required steps. While you are in financial dire straits, making good decisions is difficult. An experienced lawyer will be understanding and offer the help you need.
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 analyzing all your debts a monthly payment amount will be set up. Payment will be made to a Chapter 13 Trustee, not the creditors. The trustee takes over paying the creditors a certain amount every month. You may take from three to five years to finish payments.
Once your case is accepted by the federal judge, all garnishments and collection phone calls from creditors will stop. You may stop your home from being foreclosed on. You may be able to get a vehicle back that was repossessed. Filing quickly makes it more likely that your car has not been resold. If it has, there is no way to reclaim it.
The house and car payments can be caught up on, thus allowing you to keep them. Other debts, such as medical bills, credit card debts and personal loans, are handled differently. You may be allowed to pay a lower interest rate on those debts.
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.
No corporations are eligible to file a chapter 13 bankruptcy. It is intended to help consumers and some small businesses only. This way to clear up all debt is fair to both yourself and the creditors who will be repaid. It is an equitable way to settle all your outstanding debt.
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 Attorney he suggests you click here to learn more.
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