Declaring bankruptcy does not always erase all debt. The chapter 7 may do so. But, the chapter 13 does not. It allows someone to pay off past debt over time. They must, however, earn enough income to finance their current living expenses as well as pay off the past debt. A qualified Knoxville chapter 13 attorney will help to retain your home and vehicle.
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.
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.
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.
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.
You can catch up on car and house payments when allowed to keep them. The other outstanding bills, credit card debt and medical bills for example, are handled in a different way. You may pay a lowered interest rate on them.
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.
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.
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.
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.
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.
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.
You can catch up on car and house payments when allowed to keep them. The other outstanding bills, credit card debt and medical bills for example, are handled in a different way. You may pay a lowered interest rate on them.
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.
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 13 Law he suggests you visit his friend's for more information.
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