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Understanding Chapter 13


Understanding How Chapter 13 Works in the Chattanooga Bankruptcy Courts
 
Chapter 13 is a reorganization, rather than a liquidation of your debt, allowing you to keep your assets and repay your creditors. Chapter 13 is a good Chattanooga bankruptcy option for individuals with regular income who simply need more time or better terms to repay their debts.
 
To qualify for Chapter 13 Chattanooga bankruptcy, you must have a regular source of income, preferably in the form of a steady paycheck. After evaluating your income, expenses and debt, your Tennessee bankruptcy lawyer will help you develop a reasonable budget and repayment plan to be approved by the Chapter 13 trustee and your Chattanooga bankruptcy judge. Once the plan is in place, you will be protected from all creditor action during the course of the payment plan, which typically lasts five years.
 
One of the main advantages of Chapter 13 bankruptcy over other forms of payment plans, such as those set up by Consumer Credit Counseling or other credit management companies, is that it is backed by federal law, and your creditors will be forced to accept the final terms of the agreement.
 
If you are facing foreclosure or repossession, our experienced Tennessee bankruptcy lawyers can help you save your home and property. Chapter 13 bankruptcy is an effective defense against a variety of creditor actions and other financial issues. By filing for Chattanooga bankruptcy under Chapter 13, you can:
 
•  Stop a foreclosure

•  Reinstate a mortgage and repay missed payments over time

•  Stop a repossession

•  Modify the terms of installment payments for large purchases

•  Cancel a lease

•  Stop a tax levy and reduce outstanding tax debt

•  Stop a pending wage garnishment or bank account levy

 
It is possible that your financial situation may change, for better or for worse, during the course of your Chapter 13 repayment plan. If, due to a change in circumstances, you find that you are unable to afford your Chapter 13 payments, a Tennessee bankruptcy lawyer from Clark & Washington can either modify your plan or convert your Chattanooga bankruptcy case to a Chapter 7.
 
If you are facing financial difficulties, or expecting to face some of these issues in the near future, do not wait to seek help. The sooner you contact the Chattanooga bankruptcy experts at Clark & Washington, the sooner we can help you get your finances back on track. Call us today at 423-634-1910


 






Clark & Washington - Chattanooga Bankruptcy Attorneys