As a Memphis Tennessee bankruptcy lawyer, I want to tell you that bankruptcy is nothing to be ashamed of. If you’re considering filing, you’re not alone. In fact, I’ve helped thousands of people build a better future by doing the exact same thing. But there are different types of bankruptcies you can file for.
Today, I’m going to tell you the most important things you need to know about chapter 13 bankruptcy so you can make the choice that’s right for you.
What is a Chapter 13 Bankruptcy?
Chapter 13 bankruptcy offers a number of advantages.
First, it gives debtors the opportunity to restructure their financial affairs to maintain their business. This kind of restructuring acts like a consolidation loan, allowing the filer to pay their debts over time while also protecting them from harassment by creditors. By rescheduling secured debts and extending them over the life of the bankruptcy period, their debt payments may also be lowered.
Most significantly, filing under this chapter gives the debtor a chance to save their home from foreclosure and to stop foreclosure proceedings. This gives them a chance to catch up on delinquent mortgage payments over time while keeping their family safe at home.
What is the actual process like?
To start the process, it’s important to find an experienced lawyer who knows what they’re doing. Your lawyer will look at all of your debts and come up with a payment plan that works for you.
Under Chapter 13, a trustee is also appointed to oversee the debtor’s progress and communicate with their creditors. This means the person filing will have no direct contact with creditors while under the protection of Chapter 13, which is a welcome relief for many.
Once you have a payment plan, your lawyer will present it to the trustee. When it is mutually approved by the trustee and creditors, the plan is filed and goes to the bankruptcy court for approval. Once approved by the court, the process of filing is complete. After filing, the debtor is required to attend debt credit counseling sessions.
How long will it take to restructure my debts?
Your attorney should draft a chapter 13 plan that allows repayment over 3 to 5 years at an amount you can afford. The key is that you keep the assets you want to keep or you let them go along with the debt.
The power of Chapter 13 bankruptcy is that you have a date certain when you will be free of debt, except perhaps if you have a long-term mortgage.
What do I need to be eligible for a Chapter 13 bankruptcy?
To be eligible, you must show the court that you have a constant source of income, providing assurance that you can repay your creditors.
For more details on the specific requirements of filing Chapter 13 bankruptcy, watch our YouTube Video here.
Talk to an experienced Memphis Tennessee bankruptcy lawyer today for FREE.
The real purpose of what I do is give people the chance to remove debt and stress related to it so they can live a better life. If you’re struggling with debt you can’t pay and need a way out, talk to an experienced Memphis Tennessee bankruptcy lawyer at my firm today for a FREE consultation. We will handle all of the hard work on your behalf and simplify the process for you so you can focus on your future.
Call (901) 327-2100 or contact us online today. We will answer every question you have and make a plan that works for your unique situation. A better financial future is just a phone call away.