Chapter 13 Bankruptcy |Debt Relief in Chattanooga

About Chapter 13 Bankruptcy

Not all people qualify for a Chapter 7 bankruptcy which can only be filed once every 8 years. There are a variety of reasons that a person may choose not to file a Chapter 7.  But still in need of debt relief offered by bankruptcy.  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 is to save a home from foreclosure. Usually an insolvent debtor can not reaffirm a home mortgage in Chapter 7 unless the house payments are current. The differences between chapter 7 and chapter 13 bankruptcy. If a debtor should file one chapter of bankruptcy or the other. Are issues that need to be reviewed with a Chattanooga bankruptcy attorney. Purple Law Firm’s Chattanooga lawyers for bankruptcy are skilled legal professionals. Our Chattanooga bankruptcy attorneys will thoroughly analyze your financial situation and the options available under chapter 7 and chapter 13 bankruptcy.

Chapter 13 Bankruptcy, What does it offer?

There are many benefits to chapter 13 bankruptcy debtors including:

  • No credit card interest or late fees
  • Save home from foreclosure
  • Keep your vehicle
  • Resolve Tax Issues
  • Reduce your total debt repayment
No interest in Chapter 13 bankruptcy

Chapter 13 0% Interest

These are just a few of the benefits of filing chapter 13 bankruptcy.  Most important: the process of filing bankrupt under this chapter allows the debtor to repay debts within his/her means. Chapter 13 is perhaps the most flexible and complete debt relief option available.  Know the full benefits of Chapter 13 bankruptcy for you. Consult with a Chattanooga bankruptcy attorney at Purple Law Firm.

Chapter 13 Bankruptcy Plan of Repayment

The Chapter 13 Plan

 replaces the original obligation to pay debts with a repayment plan. To file a Chapter 13 Bankruptcy, the debtor and the Chattanooga bankruptcy lawyer prepare a repayment Plan. This is your proposal to the Court and the creditors for repayment of all or a major portion of the unsecured debt. A debtor may also include a proposal to catch up on mortgage payments. Pay delinquent property and income taxes. Or any other secured loan. The portion of debts that are repaid in chapter 13 bankruptcy depends mostly on the person’s income and ability to repay. Your bankruptcy lawyer will prepare a chapter 13 means test. This helps guide the lawyer for bankruptcy in preparing the chapter 13 plan. A chapter 13 bankruptcy petition can usually be filed at any time. If it represents a good faith effort to repay the debts or a portion of debt within a person’s financial means. And within an appropriate period of time (usually 36 or 60 months). The maximum chapter 13 plan period is five years. Contact a Chattanooga bankruptcy attorney to advise you about feasibility and your Chapter 13 plan.

A Bankruptcy Attorney is Advisable

Chapter 13 bankruptcy is very complicated

Like chapter 7,  having an attorney for chapter 13 bankruptcy is advisable. The Debtor(s) must fully disclose all financial information. This includes income, debts, even debts owed to a family member, property, etc. The chapter 13 bankruptcy debtor must also complete credit counseling. The chapter 13 plan must be made in good faith and must be feasible. The chapter 13 plan must either treat all unsecured creditors the same or contain a justification for different treatment. An experienced bankruptcy attorney knows how to prepare a chapter 13 plan that is legally 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 Chattanooga bankruptcy attorney to file 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.  Bankruptcy is not the only solution to debt problems. In most situations it is the best option. Chapter 13 bankruptcy provides complete debt resolution to the majority of debtors.  Chapter 13 bankruptcy allows an insolvent debtor to catch up a delinquent home mortgage or past due car payments. Repay credit card debts without interest. It even helps resolve tax debts. Under certain circumstances chapter 13 allows a person to repay only a portion of the total debts owed. Then discharges or clears the unpaid remainder of the debt. If you think you may be insolvent, unable to pay 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 have been filing consumer bankruptcies in the Eastern District of Tennessee for over 31 years.

Chattanooga Tennessee Chapter 13 bankruptcy attorneys serving Hamilton County, Bradley County, Rhea County, Bledsoe County, Marion County.

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