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.
It is sometimes referred to as a reorganizational bankruptcy. The amount of income you have when you file must meet court approval. A credit counseling course may be required before filing. You are approved at the courts discretion.
You can find an attorney experienced in this branch of the law to guide you through the procedure. When someone is in financial distress, making good decisions is difficult. Your lawyer can help you in doing what is in your best interest.
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.
Favorable to you, the interest on all bills stops as of the date your bankruptcy case is accepted. You may pay back taxes over time, child support owed over time and alimony over time. Some debts can be discharged and others can be made to require partial payment.
Corporations are not eligible to file a chapter 13 bankruptcy. It is limited to consumers and some small businesses. This path offers a manageable and fair chance to clear up the debt owed in a manner that is done over a three to five year length of time.
It is sometimes referred to as a reorganizational bankruptcy. The amount of income you have when you file must meet court approval. A credit counseling course may be required before filing. You are approved at the courts discretion.
You can find an attorney experienced in this branch of the law to guide you through the procedure. When someone is in financial distress, making good decisions is difficult. Your lawyer can help you in doing what is in your best interest.
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.
Favorable to you, the interest on all bills stops as of the date your bankruptcy case is accepted. You may pay back taxes over time, child support owed over time and alimony over time. Some debts can be discharged and others can be made to require partial payment.
Corporations are not eligible to file a chapter 13 bankruptcy. It is limited to consumers and some small businesses. This path offers a manageable and fair chance to clear up the debt owed in a manner that is done over a three to five year length of 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 File Bankruptcy he suggests you visit his friend's to learn more.
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