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How we can help get you a manageable repayment plan

As this blog has previously discussed how Chapter 13 bankruptcy requires a financially struggling family to make regular monthly payments on their debts, some Tennessee residents may be wondering what exactly can be done to make sure the payment plan is manageable for them. After all, the bankruptcy will be of little help if, a few months into it, the family discovers they simply cannot keep up with the payments.

What are some advantages of Chapter 13 bankruptcy?

Many people in Bradley County and throughout the southeastern corner of Tennessee may wonder what advantages there are to filing a Chapter 13 as opposed to a Chapter 7 bankruptcy. After all, the more common Chapter 7 bankruptcy involves a quicker process that can give a family permanent debt relief in sometimes a matter of just weeks or a few months.

How does stripping off a lien work in Chapter 13?

One of the advantages to Chapter 13 bankruptcy is that, for certain types of secure loans, a struggling family can actually improve their financial position by "stripping off" a lien, which is a completely legal process that involves converting what was a secured loan, like a second mortgage, in to an unsecured loan, like a credit card or medical bill.

The right approach to Chapter 13 bankruptcy

For some people in Bradley County, Tennessee, or in other parts of the greater Chattanooga metro area, the prospect of having to file a Chapter 13 bankruptcy is not good news for a struggling family, yet the family does not have much of a choice because they make a high income. For others, filing Chapter 13 is a conscious choice. For instance, some people are willing to trade off having to repay all or part of their debts in exchange for getting to keep all of their property instead of having to turn it over to a bankruptcy official. There are other financial and legal advantages to filing for Chapter 13 bankruptcy and skipping the more common Chapter 7 bankruptcy.

How is property protected in a Chapter 13 bankruptcy process?

Bankruptcy can be a reorganization option for individuals. However, in order to use this bankruptcy type, filers must have a reliable source of income. Those seeking to reorganize their debt and enjoy a fresh financial start at the end of the process should consider filing for Chapter 13 bankruptcy. A manageable repayment plan is developed through the Chapter 13 bankruptcy process that allows the filing party to repay their debts over a 3-5 year period.

A closer look at Chapter 13 bankruptcy

Struggling with debt can be overwhelming. Chapter 13 bankruptcy is one option that is available to provide relief from the stress associated with overwhelming debt. Chapter 13 bankruptcy is considered a 'reorganization bankruptcy' that allows the filing party to reorganize his or her debt to repay it according to a more manageable repayment plan. The debts will be repaid over a period of time, typically three to five years depending on certain circumstances, rather than selling property to repay debts, which is commonly associated with a Chapter 7 bankruptcy.

What are the benefits and shortcomings of Chapter 13 bankruptcy?

Last week this Tennessee bankruptcy law blog explored some of the advantages and disadvantages of filing for Chapter 7 bankruptcy. This week's topic addresses the benefits and shortcomings of Chapter 13 bankruptcy for American consumers. Though the information provided in this post may be relevant to an individual's particular financial situation or legal matter, it should not be relied on as legal guidance or advice. However, it is important to consider the major component of the process so individuals are prepared to discuss their questions about the Chapter 13 bankruptcy process.

We help individuals take charge of their overwhelming debts

Tackling a major project can be a challenge for individuals who struggle to look at each step and who cannot see past the totality of everything that must be done. Tennessee residents who become overwhelmed when working through difficult tasks may flounder when faced with burdensome debts and simply may not know where to begin to address their financial woes. One of the first steps that they can take to begin the process of rebuilding their economic health is to contact a bankruptcy and debt relief attorney like Richard Banks.

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