Filing for Chapter 13 Bankruptcy in Tennessee
A Chapter 13 bankruptcy may be the best option for you, especially if you earn above the median wage but still have found yourself under a crushing amount of debt. It provides some protection from debtors and continuing efforts at collection while you seek to complete a renewed repayment plan.
In these cases, the court will assign a trustee to oversee the process and make sure that everything is on the up-and-up, they will serve as the agent who collects the money from the debtor in order to make sure that things are completed on time.
What is a Chapter 13 Bankruptcy?
A Chapter 13 is available to private individuals and married couples and is mostly used to prevent foreclosure on a home. You’ll definitely need an experienced legal aid in these cases since you’ll have to work together with the court in order to create a plan which is manageable with your finances.
In many cases, those who have too high of an income to qualify for a Chapter 7 bankruptcy will find that this is their ideal option.
In addition to creating a more manageable way to handle a large amount of debt, there are some other benefits offered by utilizing this type of bankruptcy:
- You can save your home or other secured assets by turning past bills into manageable chunks as long as you continue to make the rest of your payments on time.
- Co-signers on your assets will be protected from collections for the duration of the payment plan
- It will stop late fees and added penalties on payments which are past due
Life happens. You deserve a fresh start. We can help.
Essentially, if you’ve gotten in over your head, then a Chapter 13 bankruptcy may be an option you should speak with an attorney about.
In order to file this particular motion, you must have a secure source of income and have some “disposable” income on top of what covers your living expenses. This makes it the right option for some people, but not for all.
It’s particularly valuable for those with unsecured assets they wish to keep while still filing for bankruptcy. If you’re just looking to clear out your debt, you may wish to look into the option of filing a Chapter 7, but the option isn’t available to all individuals.
Filing for Chapter 13 Bankruptcy in East Tennessee
Chapter 13 is a complex affair, and you’ll definitely want to make sure that you have the best legal advice available. We have offices located in Johnson City, Knoxville, Kingsport, Chattanooga, and Morristown, TN to help and make sure that you get on the right track.
So whether you’re just wondering if Chapter 13 is the right option or you want to make sure that you can clear some debt, make life a bit more manageable, and get on with things while getting rid of some of the baggage of your past, we’re here to help.
Set up an appointment with a trusted attorney, and we’ll help you get along on your way to a new future.