Declaring bankruptcy does not always erase all debt. The chapter 7 may do so. But, the chapter 13 does not. It allows someone to pay off past debt over time. They must, however, earn enough income to finance their current living expenses as well as pay off the past debt. A qualified Knoxville chapter 13 attorney will help to retain your home and vehicle.
It is sometimes referred to as a reorganizational bankruptcy. The amount of income you have when you file must meet court approval. A credit counseling course may be required before filing. You are approved at the courts discretion.
You can find an attorney experienced in this branch of the law to guide you through the procedure. When someone is in financial distress, making good decisions is difficult. Your lawyer can help you in doing what is in your best interest.
Most will offer a no-obligation conference to decide if you want to hire him or her. You can find out if you are eligible to have your case accepted by the court. Choose an attorney who takes time to talk to you and answer questions. You should maintain contact through the repayment period also.
All your debts will be listed and a monthly payment will be set. It is made to a Chapter 13 Trustee. That trustee is required to pay the creditors a set amount towards paying off all your debts. The payment period may be set at three to five years.
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.
You are given the opportunity to catch up on house and car payments. All other bills owed are handled in a different way. The personal loans, credit cards and medical bills are charged a lower rate of interest as they are being repaid.
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.
The chapter 13 bankruptcy is not available to corporations. It is for consumers and some small businesses. It is a fair and manageable opportunity to clear up all debt in a way that is completed over time.
It is sometimes referred to as a reorganizational bankruptcy. The amount of income you have when you file must meet court approval. A credit counseling course may be required before filing. You are approved at the courts discretion.
You can find an attorney experienced in this branch of the law to guide you through the procedure. When someone is in financial distress, making good decisions is difficult. Your lawyer can help you in doing what is in your best interest.
Most will offer a no-obligation conference to decide if you want to hire him or her. You can find out if you are eligible to have your case accepted by the court. Choose an attorney who takes time to talk to you and answer questions. You should maintain contact through the repayment period also.
All your debts will be listed and a monthly payment will be set. It is made to a Chapter 13 Trustee. That trustee is required to pay the creditors a set amount towards paying off all your debts. The payment period may be set at three to five years.
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.
You are given the opportunity to catch up on house and car payments. All other bills owed are handled in a different way. The personal loans, credit cards and medical bills are charged a lower rate of interest as they are being repaid.
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.
The chapter 13 bankruptcy is not available to corporations. It is for consumers and some small businesses. It is a fair and manageable opportunity to clear up all debt in a way that is completed over time.
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 Law he suggests you click here to learn more.
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