Memphis’ Important Role in the History of Chapter 13 Bankruptcy
For decades, Memphians have relied on Chapter 13 bankruptcy to help stop foreclosure, end repossession, and get rid of wage garnishment. It is a powerful tool that can save people in debt. But a lot of folks don’t realize Memphis and Chapter 13 bankruptcy have a long history. In fact, this powerful option might not exist were it not for our great city.
How Memphis Helped Create Chapter 13
Walter Chandler (pictured) was a Congressman for Tennessee in the 1930s. In that job, he oversaw the country’s bankruptcy laws.
He’d come to Congress after serving as Memphis’ city attorney. While working for the city, he noticed a common pattern happening to city workers: employees who had financial trouble would approach their managers to help work out a pay schedule for their creditors.
They wanted to pay their debts, and they had good jobs, but they just needed extra time to pay it all down. If they could pay a little less every month for a little longer, they could get out of debt.
This was a great idea, but it didn’t hold up in court. Creditors might agree to the deal, but then they could just turn around and keep garnishing people’s wages or foreclose on their home. Nothing held the creditors accountable.
As a result, Chandler decided this should be an issue for the courts. There should be an option for people who can pay back some of their debt at a lower rate. If they can set up a reasonable payment plan, Chandler believed, then creditors should have to stop foreclosure, repossession, and wage garnishment.
That idea came from Memphis’ city employees, and it’s the crux of Chapter 13 bankruptcy.
Memphis Courts Start Offering Chapter 13
In the late 70s and early 80s, Chapter 13 bankruptcy became a common option in Memphis courts.
At the time, Memphis local Judge David Kennedy served as the Chief United States Bankruptcy Judge, and George Stevenson served as a Chapter 13 trustee. Together, they really helped define how Chapter 13 bankruptcies would work nationwide.
As a result, over the years, Memphis became known as a hub for Chapter 13 bankruptcies.
Our Role In Memphis and Chapter 13 Bankruptcy
We were one of the first firms in the city to offer Chapter 13 and help people understand what it can do for them. If you earn a wage and want to keep your home or other assets, Chapter 13 can be a life-saver.
I’ve seen families keep their children in a better public school near their friends, keep the car they need for work, and get a fresh start. In fact, I even wrote a free report for our clients about the life-changing power of Chapter 13 bankruptcy.
But I also know exactly when it’s the best choice or when you may want a different option. Our team always looks at your unique situation and helps you decide the best way forward for you personally. We listen to your needs and wants, and we ask questions to make sure we’re representing you and your best interests.
Then, we help our clients every step of the way. We deal with problems as they come up so your case doesn’t get dismissed for some minor reason. Our clients know we’re there for them, and that’s why we’ve won multiple awards for client satisfaction.
Chapter 13 bankruptcy grew out of a real need in Memphis for more options. We’re proud to offer it here at Darrell Castle & Associates, and we can help you decide if it’s right for you.
Whether you know which bankruptcy chapter you want or not, we can help you get out of debt. Contact us today for a free appointment. Just fill out the form below or give us a call at 901-327-2100.