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.
Sometimes it is called a reorganizational bankruptcy. Your current income must be high enough to meet the courts approval. If denied, you are not able to file. You may be asked to take a course in credit responsibility.
An experienced attorney will advise you and help you through the entire process. Being in financial distress makes it difficult to decide what to do. The lawyer will help you make the best decision relying on past experience in this branch of the law.
Most lawyers offer a no-obligation meeting to decide if you want to hire her or him. You can find out whether you are eligible to file for a chapter 13. Select an attorney willing to explain things to you. That is someone likely to remain available while the repayment schedule is being met.
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.
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.
This is beneficial to you to have all interest stopped when your bankruptcy case is accepted by the court. Back taxes, back child support and alimony can be caught up on over time. Some debt may be dismissed and others 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.
Sometimes it is called a reorganizational bankruptcy. Your current income must be high enough to meet the courts approval. If denied, you are not able to file. You may be asked to take a course in credit responsibility.
An experienced attorney will advise you and help you through the entire process. Being in financial distress makes it difficult to decide what to do. The lawyer will help you make the best decision relying on past experience in this branch of the law.
Most lawyers offer a no-obligation meeting to decide if you want to hire her or him. You can find out whether you are eligible to file for a chapter 13. Select an attorney willing to explain things to you. That is someone likely to remain available while the repayment schedule is being met.
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.
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.
This is beneficial to you to have all interest stopped when your bankruptcy case is accepted by the court. Back taxes, back child support and alimony can be caught up on over time. Some debt may be dismissed and others 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 11 Attorney he suggests you visit his friend's to learn more.
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