When most people see that someone has declared bankruptcy it is assumed that all debt has been erased. That is basically true with a chapter 7 bankruptcy. However, there are other types. One is called a chapter 13. This is for people with a regular income who can afford to pay all their bills off over a five year period. They must also be able to pay their current living expenses. The Knoxville chapter 13 attorney helps retain your home and other property.
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.
The procedure will be complicated and your attorney will guide you through all the required steps. While you are in financial dire straits, making good decisions is difficult. An experienced lawyer will be understanding and offer the help you need.
Use a no-obligation meeting to decide if you want to work with the attorney. You will find out if you are likely to be eligible and have your petition accepted. You want an attorney who will take the time to talk to you now, and return your phone calls during the repayment period.
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.
The court stops all garnishments and harassing phone calls from the companies you owe money to. You can stop a foreclosure on your house. You can reclaim a vehicle that was repossessed. However, these things must be done quickly. For example, if your vehicle has already been resold you will not get it back.
The house and car payments can be caught up on, thus allowing you to keep them. Other debts, such as medical bills, credit card debts and personal loans, are handled differently. You may be allowed to pay a lower interest rate on those debts.
Favorable to you, the interest on all bills stops as of the date your bankruptcy case is accepted. You may pay back taxes over time, child support owed over time and alimony over time. Some debts can be discharged and others can be made to require partial payment.
No corporations are eligible to file a chapter 13 bankruptcy. It is intended to help consumers and some small businesses only. This way to clear up all debt is fair to both yourself and the creditors who will be repaid. It is an equitable way to settle all your outstanding debt.
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.
The procedure will be complicated and your attorney will guide you through all the required steps. While you are in financial dire straits, making good decisions is difficult. An experienced lawyer will be understanding and offer the help you need.
Use a no-obligation meeting to decide if you want to work with the attorney. You will find out if you are likely to be eligible and have your petition accepted. You want an attorney who will take the time to talk to you now, and return your phone calls during the repayment period.
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.
The court stops all garnishments and harassing phone calls from the companies you owe money to. You can stop a foreclosure on your house. You can reclaim a vehicle that was repossessed. However, these things must be done quickly. For example, if your vehicle has already been resold you will not get it back.
The house and car payments can be caught up on, thus allowing you to keep them. Other debts, such as medical bills, credit card debts and personal loans, are handled differently. You may be allowed to pay a lower interest rate on those debts.
Favorable to you, the interest on all bills stops as of the date your bankruptcy case is accepted. You may pay back taxes over time, child support owed over time and alimony over time. Some debts can be discharged and others can be made to require partial payment.
No corporations are eligible to file a chapter 13 bankruptcy. It is intended to help consumers and some small businesses only. This way to clear up all debt is fair to both yourself and the creditors who will be repaid. It is an equitable way to settle all your outstanding debt.
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.