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.
The chapter 13 is frequently referred to as a reorganizational bankruptcy. Your income must be proven sufficient to the court before you can file. You may be required to go through a credit counseling course before approval. It is at the discretion of the federal court.
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.
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.
After analyzing all your debts a monthly payment amount will be set up. Payment will be made to a Chapter 13 Trustee, not the creditors. The trustee takes over paying the creditors a certain amount every month. You may take from three to five years to finish payments.
You will be able to stop your home from being foreclosed on. A repossessed car can be reclaimed. The garnishments and harassing phone calls from creditors will be stopped. You must do the filing quickly. If you do not and your vehicle has been resold, you will not be able to reclaim it.
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.
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.
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.
The chapter 13 is frequently referred to as a reorganizational bankruptcy. Your income must be proven sufficient to the court before you can file. You may be required to go through a credit counseling course before approval. It is at the discretion of the federal court.
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.
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.
After analyzing all your debts a monthly payment amount will be set up. Payment will be made to a Chapter 13 Trustee, not the creditors. The trustee takes over paying the creditors a certain amount every month. You may take from three to five years to finish payments.
You will be able to stop your home from being foreclosed on. A repossessed car can be reclaimed. The garnishments and harassing phone calls from creditors will be stopped. You must do the filing quickly. If you do not and your vehicle has been resold, you will not be able to reclaim it.
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.
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.
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 Bankruptcy Attorney he suggests you visit his friend's to learn more.
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