Why File for Chapter 13 Bankruptcy? There are Good Reasons
There are a number of very good reasons why a person would want to file for Chapter 13 bankruptcy. At David Holmes, Bankruptcy Law, our job as bankruptcy attorneys is to take an in depth look at your overall situation and provide you with the information you need so that you can make an educated decision about whether to file for bankruptcy, and what type of bankruptcy to file. After you decide, we'll take care of everything else.
How Does a Chapter 13 Bankruptcy Work?
In a Chapter 13 bankruptcy, the amount you owe to your creditors is negotiated down. In a debt repayment plan, the portion of your income which exceeds basic living expenses, such as food, clothing and utilities, will be used to pay off your debts.
You do not pay your creditors directly, but instead pay a Chapter 13 trustee, who pays your creditors. The repayment plan lasts for three to five years. When the repayment plan is over, all of your debts are considered "paid in full" even though your creditors may have received less than the full amount of what they were owed.
For you convenience, we have provided some basic background information about bankruptcy and additional information about Chapter 13 bankruptcy.
We have also provided the answers to many frequently asked questions.
When is Chapter 13 a Good Option?
A Chapter 13 bankruptcy may be a good option for you in the following situations:
- You own property worth much more than what you currently owe on it (such as a car worth $10,000 with $2,000 left to pay) and you wish to keep the property.
- You are behind on a debt where the creditor has a lien on some property that you want to keep.
- You own property that you want to keep, such as a car, but the payments are too large.
- You missed child support payments.
- Most income taxes cannot be eliminated in Chapter 7 or a Chapter 13 bankruptcy, but in a Chapter 13 bankruptcy the back taxes can be repaid over time.
Call 615-206-4617
Stop tossing and turning due to money worries. Our Tennessee law firm helps individuals and families in Gallatin, Portland, Hendersonville, Lebanon and the surrounding area. Let us evaluate your financial situation and help you identify your options. Your first consultation with a lawyer is free with no obligation. Call or send us an e-mail today.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
