About Chapter 13 Bankruptcy
Chapter 13 is Different from Chapter
7 Bankruptcy
Chapter 7 bankruptcy allows you to
discharge
all of your unsecured debt (like credit cards),
and choose to have secured debt (mortgage, car loans,
etc.) discharged as well. But not all people
qualify for a
Chapter 7 bankruptcy which can only be filed
once every 8 years. There are a variety of
other reasons that a person may choose not to file a
Chapter 7, but you still need
relief from debt
offered by bankruptcy, namely chapter 13. One
reason to file chapter 13 bankruptcy instead of chapter 7 is to protect assets
from seizure by the bankruptcy
trustee. Another reason that a debtor will
need to file chapter 13 bankruptcy instead of
chapter 7 is to
save a home from foreclosure-
usually you can not
reaffirm a home mortgage that
unless your payments are
current. Ultimately the
differences
between chapter 7 and chapter 13 bankruptcy,
and the reasons you should file one chapter of bankruptcy or the
other is an issue that needs to be reviewed with a
bankruptcy attorney.
Purple Law Firm's
Chattanooga lawyers for bankruptcy are
experienced legal professionals who will thoroughly
analyze your financial situation and the options
available under chapter 7 and chapter 13
bankruptcy.
Chapter 13 Bankruptcy, What does it offer?
Chapter 13 bankruptcy replaces your
original obligation to pay debts with a
repayment plan which you submit to the
Bankruptcy Court for approval. To file a Chapter
13 Bankruptcy, you and your bankruptcy lawyer
prepare a Chapter 13 Plan, which is your proposal to the
Court and your creditors for repayment of all or
a major portion of your unsecured debt.
You may also include your proposal to catch up on your
mortgage payments, property and income taxes, or any
other secured loan. The portion of your debts that
you repay in chapter 13 bankruptcy depends mostly on
your income and ability to repay. Your bankruptcy
attorney will prepare a chapter 13
means test which helps guide you and the lawyer
for bankruptcy in preparing the chapter
13 plan.
Bankruptcy chapter 13 can usually
be filed at any time, as long as it
represents a good faith effort to repay your
debt or a portion of your debt within your
means and within an appropriate period of time (usually
36 or 60 months). The maximum chapter 13
plan period is five years. You must be
able to show that you are able (have enough income or
financial resources) to repay your debt as proposed in
your chapter 13 plan. You must show that your plan
to repay your debt is feasible.
Contact a Chattanooga bankruptcy attorney to
advise you about feasibility and your Chapter 13 plan.
Benefits to Bankruptcy
Chapter 13
Even if your Chapter 13 Plan
proposes to repay 100% of your unsecured debt
and all of your secured debt (or get and stay
current on mortgage, car loans, etc.) within the
time allowed, you
still reap benefits from
Chapter 13. When you file a chapter 13 bankruptcy
the
automatic stay is effective at the moment of
filing the bankruptcy petition. One
benefit of chapter 13 is that the
interest and fees on unsecured debt
(credit cards and the like) stops
at the moment of filing for bankruptcy. In
other words, the balance you owe as of the date
you file your Chapter 13 Bankruptcy Petition is
the most you need to repay. In some cases you would
only repay a major portion of that debt for
example a 70% Chapter 13 Plan.
In 3 years or 5 years, (whichever applies) you
will have all of your unsecured debt paid off,
and you will be able to keep your secured
assets, as well as the equity interest
in your assets that not encumbered by a
loan. This may not be possible outside
of Chapter 13, in many cases. Another benefit to
bankruptcy
chapter 13 is that
it can stop foreclosure and
help you save your home. Ask a bankruptcy
lawyer about all of the benefits available in
chapter 13 including discharging secured debts.
Yes, most people can surrender and discharge a
home or car debt in Chapter 13.
You Should have a Bankruptcy
Attorney to File Chapter 13
Like chapter 7,
chapter 13 bankruptcy
is very complicated. You must
fully disclose all of your financial
information- income, debts including debts owed
to a family member, property, etc. Your
chapter 13 plan must be made in good faith and
must be feasible. Your chapter 13 plan
must either treat all unsecured creditors the
same or contain a justification for different
treatment. An experienced bankruptcy
attorney lawyer knows
how to
prepare a chapter 13 plan that is
proper and works to meet the goals of the
bankruptcy debtor. Avoid a costly mistake,
including possible criminal charges, or a
finding of abuse of bankruptcy – retain a
bankruptcy attorney to file your chapter 13.
Purple Law Firm in Chattanooga is
experienced in Chapter 13.
Debt Relief Through Chapter 13
The United States
Congress and the US Code recognizes that a
bankruptcy law firm is a debt relief agency.
Although bankruptcy is not the only solution to
debt problems, in most situations
bankruptcy is the best option and
provides complete debt resolution
to the majority of bankruptcy filers. Specifically,
Chapter 13 bankruptcy allows you to catch up
your home mortgage or car payments, repay your
credit card debts without interest, and resolve
tax debts. Under certain circumstances chapter
13 allows you to repay only a portion of your
debts, and discharges the unpaid remainder. If
you think you may be insolvent, unable to pay
your debts in a timely fashion as contracted,
or are behind on house or car payments you need relief from debt and credit problems.
Contact a
Chapter 13 bankruptcy lawyer in Chattanooga, TN, to explore the
complete debt relief available
through bankruptcy. The
attorneys of Purple Law Firm has been filing
bankruptcies in the
Eastern District of Tennessee for over 29
years.
|
Chapter 13 Bankruptcy Requires Legal Expertise
Attorney
Jim Purple has been assisting clients in the Chattanooga
TN area with repayment of debt through Chapter 13
bankruptcy for over 29 years. Have a seasoned
legal professional on your side -
retain a bankruptcy lawyer who cares about your situation. At
Purple Law Firm in Chattanooga, the attorneys and legal staff
recognize and understand your fears
and concerns that come with bankruptcy. Our
professional staff will help
you understand the process of chapter 13, and make bankruptcy
proceedings as
smooth as possible for you.
Highlights of Chapter 13 Benefits
-
Immediately End Creditor Harassment
- End Credit Card Interest and Fees
- Stop Garnishments or Bank Levies
- Save Your Home from Foreclosure
- Catch up on Car Payments
- Resolve Tax Debts Including Property Taxes
- Surrender A Secured Asset Discharge
Loan
- Pay Attorney Fees through Plan
Chapter 13 is flexible,
but not all things are possible. Your
Chapter 13 Plan must be feasible and provide for
payment of debts within your financial means.
This is why you need an experienced lawyer.
Bankruptcy Pre Filing Requirements
- Credit Counseling Interview with
approved agency
- Tax Returns for previous two (2) years
- Current Pay Check Stubs for previous sixty (60) days
- Complete Petition Listing all financial information including all
creditors, all property and all income
- Meet all other eligibility requirements **
**
Please consult a bankruptcy attorney for
details on eligibility requirements
|
