Chapter 13 Bankruptcy Lawyer Memphis TN Trust Explains Chapter 13 Bankruptcy
Chapter 13 bankruptcy is less commonly filed for than Chapter 7. It exists as a structured payment plan to help one pay off their debts on a schedule and helps them avoid harassment by creditors. Once you a file, you must attend debt credit counseling sessions. Upon completion, you will pay a fee to file information on all of your financial information, including debt expenses, income, and secured and unsecured debt.
A trustee will be appointed to oversee your progress and communicate with your creditors. They will facilitate a meeting with creditors and will gain information from you to discuss the terms of the repayment plan. You will have to file the mutually approved plan and when bankruptcy court approves it, the process of filing is complete. The following is a brief overview of chapter 13. A chapter 13 bankruptcy lawyer in Memphis TN can answer more specific questions about your situation.
What Chapter 13 Bankruptcy Can Do for You
Chapter 13 is a powerful tool designed to help you through a difficult time. If you’ve experienced job loss or unexpected medical problems, it can make all the difference. As a chapter 13 bankruptcy lawyer Memphis TN has used for over three decades, I’ve seen chapter 13 bankruptcy save people’s financial futures.
Chapter 13 stops:
- Car repossession
- Wage garnishment
- Debt-related lawsuits against you
- Creditor harassment
It can also help you save your retirement and pension. With chapter 13 bankruptcy, you don’t have to spend away your future to make bill payments today.
Are Creditors Prevented from Collection?
Under chapter 13, creditors are not allowed to pursue collection after you file for bankruptcy. This is called an “automatic stay” and it prevents creditors from filing lawsuits and pursuing other means of collection so that you can work through the agreed upon repayment plan. However, collections for child support, alimony, and tax debt are not included in the automatic stay.
Can I Eliminate My Credit Card Debt?
One qualification for eligibility to file chapter 13 is that you have to pay secured creditors in full and will have to pay just some of the money back to unsecured creditors. Secured debt is a financial obligation supported by collateral like your house or car. Unsecured debt includes your credit card — it is debt that has no collateral support.
All debt is put into the repayment plan for the court to approve a plan. Your chapter 13 bankruptcy lawyer will include how you will repay the entirety of the secured and priority debt. The plan must also hold you responsible to repay their unsecured debts with an equal amount of nonexempt property. This may include interest in real estate, artwork, business assets and more. The trustee distributes the monthly payments to creditors as the plan requires once the plan goes into effect.
Will My Student Loans be Discharged?
Student loan debt repayment is usually required by the court. Student debt is considered similar to child support and back taxes: they must be paid off completely. In some cases, the court will discharge your student debt if you can prove that paying it back will cause undue hardship. This is not easy or common.
It is hard to prove the court of undue hardship and the need to discharge student debt. Factors considered in a decision include poverty; a good-faith effort that they have been trying to pay off the loan; and if you are unable to pay because of a disability. An action to move for student loan debt discharge must be filed separately from your bankruptcy, it is named: Complaint to Determine Dischargeability of a Debt.
What Happens When I Miss a Scheduled Payment?
The trustee of your bankruptcy case can ask for an action of dismissal if you miss a payment. You have agreed to a payment plan and if you cannot adhere to it then your case may be dismissed, but you could save your case if you prove that you can continue through the plan in effect or through a modified process.
Once your case is dismissed, creditors may resume their collection practices. You are no longer protected by chapter 13 and the creditors may collect the entirety of the debt as well as any interest it earned during the bankruptcy process.
Contact a Chapter 13 Bankruptcy Lawyer Memphis TN Today!
Bankruptcy is a serious process that should be undergone only as a last resort. When you visit a bankruptcy lawyer, they can provide you with a free consultation about your specific case to determine if your financial situation requires bankruptcy.
If you are already in the throes and need some assistance, it is a great chance for you to recollect yourself. Call today for a free consultation in Memphis TN and a bit of peace of mind.
How a Chapter 13 Bankruptcy Lawyer Memphis TN Respects Can Help
If you have debts you can’t pay and property you want to keep, talk with the chapter 13 bankruptcy lawyer Memphis TN has trusted for decades.
At Darrell Castle & Associates, you’ll find award-winning client care at a very reasonable price. Our staff knows you can’t make mistakes with a chapter 13 bankruptcy. When you depend on us to save your home and keep your car, you can rest assured we take that responsibility seriously. We gladly answer your phone calls and questions and do everything we can to set you up for success.
How Chapter 13 Bankruptcy Works
Chapter 13 combines your debts into monthly payments you can afford. Your attorney works with the courts to determine a reasonable payment plan that works very similarly to a budget. Once everyone agrees to the payment plan, all collection calls and creditor harassment have to stop.
You can then pay off your debts at a more reasonable amount, which helps you get back on track while protecting your assets.
This means you have a relief from all the pressure to pay impossibly high bills and can focus on getting your life back in order. Then after a few years when you finish the plan, your house payments will be current and your car will be paid off. You’ll also usually free of all other debt, like credit card and medical bills.
Unlike other debt programs, chapter 13 has the force of federal law behind it. So it’s binding on the creditors whether they like it or not.
Life After a Chapter 13 Bankruptcy
As a chapter 13 bankruptcy lawyer Memphis TN has turned to for years, I’ve seen bankruptcy change thousands of people’s lives. I believe bankruptcy can set you up for a bright and successful financial future.
If you have questions about how bankruptcy might affect your life, we have answers. We even offer a free report called Life After Bankruptcy to help. This report addresses concerns like how bankruptcy affects your credit, employment options, and reputation.
In addition, we give all our clients access to a program called 7 Steps to a 720. This course shows you how, through just a few easy steps, you can rebuild your credit to a 720 score in one year. That’s an A rating, even after a bankruptcy.
With just a little effort and the right attitude, bankruptcy can be the first step to a life of financial freedom.
Contact a Chapter 13 Bankruptcy Lawyer Memphis TN Trusts
As a Memphis chapter 13 bankruptcy lawyer, I’ve helped thousands of people get out of debt and keep their property. I can help you, too.
If you’re considering bankruptcy and want to protect your house or your car, contact us online or call us today. One of our attorneys will be happy to discuss your situation for free.
With one quick call, you can get a fresh start and speak to the chapter 13 bankruptcy lawyer Memphis TN trusts to get them out of debt.
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