Filing for bankruptcy can be a life-altering process, but it doesn’t have to be a life-wrecking one. While filing for bankruptcy protection can sometimes feel like the end of the world, the truth is that tens of thousands of people file for bankruptcy in Tennessee every year and are able to keep their cars, homes, and other important property.
If you are considering filing for Chapter 13 bankruptcy in Knoxville, having a team of local Knoxville bankruptcy attorneys on your side often makes all the difference in the world when it comes to keeping the things most important to you right where they belong – with you. Chapter 13 cases offer some advantages that aren’t available in Chapter 7 filings, and the Knoxville, bankruptcy attorneys at Cindy Lawson & Associates P.C. are here to help you navigate through the process and get you on your way to resetting your financial future.
If you have questions about Chapter 13, we have answers. Below is a list of the most common questions our bankruptcy attorneys are asked about filing for Chapter 13 bankruptcy in Tennessee.
Chapter 13 is a debt consolidation bankruptcy where all of your debt is consolidated into a monthly payment you pay to the Bankruptcy Court Trustee who pays your creditors during a period of 3-5 years. Chapter 13 reorganization is for consumers and small businesses.
Chapter 13 bankruptcy is a form of bankruptcy where the individual filing for Chapter 13 plans out a path to re-paying a percentage of the debt that they owe over a three to five year period taken from a commitment of their disposable income.
Unlike Chapter 7 bankruptcy, the means test determines your payment plan length. Most people who have substantial debt but a reliable income are eligible for Chapter 13 bankruptcy six months after they have completed the debtor education classes required by the federal government. However, you have to be able to show to a court that you will be able to meet the terms of your Chapter 13 bankruptcy payment plan.
Chapter 13 bankruptcy is an effective way for those with a reliable income to reset their finances after an unexpected financial burden or other incurred cost. It allows individuals to negotiate a fair agreement with the creditors involved that is paid out over a long period of time, and often at a rate much more manageable to the person in debt. Those who generally qualify are:
Chapter 13 bankruptcy takes longer than Chapter 7 bankruptcy, but it has its advantages. Those who are able to pay into a plan for three to five years, Chapter 13 bankruptcy can allow someone to free themselves of debt while keeping the things and property they love most. Chapter 13 cases are more popular in Tennessee than in much of the United States, and that’s partly because of the success people experience here when they are able to go to bankruptcy court and establish a reasonable plan to pay back their debt over time.
The length of a Chapter 13 depends on the length of time the debt payment plan, but that number is always between three to five years. Though it may seem like a significant undertaking at the time, Chapter 13 in Tennessee has proven to be a favorable option for those in debt but with reliable income for decades.
Short answer – yes. Chapter 13 bankruptcy cases are more complex than their Chapter 7 counterparts, and they need to be confirmed by the court in order to start the debt relief process. Having an experienced team of local bankruptcy attorneys on your side is essential to ensuring you are checking off all of the right boxes when you file. If the court disagrees with your ability to file for Chapter 13, they will reject your claim and refuse to offer an option besides Chapter 7, which puts you at greater risk of losing your most important assets to liquidation.
Our lawyers are ready to take the hassle and worry out of the Chapter 13 bankruptcy process. If you or a loved one has substantial debt but do not want to lose your home, car, and other belongings, call (865) 938-0733 to speak with our experienced Knoxville bankruptcy lawyers today.
It depends on the person's debt and assets. The Chapter 13 process can take anywhere from three to five years, depending on how much debt an individual has. In order for a chapter 13 case to be confirmed, all payments must have been made in accordance with their plan during this 180 day period (unless they use what is called a "cram-down"). If no objections are raised in these initial phases then you should attend one of two hearings that occur every 180 days as long as all payments are being received on time.
Our clients often tell us that they were hesitant to file bankruptcy because of the thought of being in debt for years and losing their assets. But our experienced team at Cindy Lawson & Associates P.C., helped them keep more than expected when they filed by themselves, allowing you to use your money where it needs most - on food, bills or other necessities!