Bankruptcy Partners’ guide to Chapter 13 bankruptcy in TN
May 11, 2021at7:00 AM
Declaring bankruptcy requires considerable thought. It has far-reaching implications. If you need Chapter 13 bankruptcy in TN, you came to the right place. Turn to us when there’s nowhere else to turn. At Bankruptcy Partners, we’ve been supplying Knoxville, and the greater state of Tennessee, with premier bankruptcy representation for decades. Unlike competitors, we offer affordable world-class counsel and attentive, personalized service to guarantee a clean slate.
Here’s our guide to Chapter 13 bankruptcy:
What is Chapter 13?
Also known as the “wage earner’s plan,” Chapter 13 bankruptcy in Tennessee enables individuals with average income to devise a plan to repay debts.
This repayment plan allows debtors to pay creditors back in installments over a period of 3 to 5 years. Often, if the debtor’s current monthly income falls below the median, their plan’s for 3 years. If it exceeds it, it’s for 5.
Chapter 13 is for those who earn a sizable income. It’s a reprieve from creditors and a way to repay debts while protecting assets. Under Chapter 13, you can even avoid foreclosure and reschedule mortgage payments.
Chapter 13 consolidates debts into a single, manageable payment plan. Common types of debt Chapter 13 discharges include medical bills, credit card debt, and personal loans. However, it’s important to understand Chapter 13 is not tabula rasa.
Unsecured debts like alimony, child support, student loans, and taxes still have to be fully paid. Just as importantly, payments on things like cars and houses must stay current during this process.
Luckily, with Bankruptcy Partners, you have nothing to worry about. Our dedicated staff and unmatched transparency will ensure every aspect of this process is clear.
Who qualifies for Chapter 13?
Before making any arrangements, eligibility for Chapter 13 bankruptcy in TN is essential to understand. Firstly, Chapter 13 is intended for individuals. However, if you’re self-employed or operating an incorporated business, you’re still eligible. Chapter 13 isn’t available to businesses.
Unsecured debts can’t outstrip $394,725 and secured debts can’t exceed $1,184,200. If you’ve filed for any kind of bankruptcy in the last 180 days and it was dismissed for the following reasons, you’re ineligible:
You failed to appear before the court
You failed to comply with orders
Your petition was voluntarily dismissed after creditors sought relief
To be eligible, you must have had credit counseling through an EOUST-approved agency in the last 180 days. You also need enough surplus income to fulfill the repayment schedule without neglecting other payments. Lastly, you must have filed income taxes for the previous four years.
Determining eligibility is difficult for the average person. There are innumerable variables to consider. However, with Bankruptcy Partners, we’ll guide you through this process and toward the light at the end of the tunnel.
Why file for Chapter 13?
When filing for Chapter 13 bankruptcy in Tennessee, consider it a consolidation loan. The benefits of filing for Chapter 13 include:
Creditors are prohibited from contacting you
Secured debts can be restructured and extended
You can save your home
You keep your property and gain time to pay debts
Co-signers on consumer debts are protected
Ultimately, your circumstances dictate what you’ll receive and what will be discharged. With Bankruptcy Partners, our tailored solutions ensure our counsel is optimal for your unique situation.
Contact us now for a consultation!
If you’re out of options and need to file for Chapter 13 bankruptcy in TN, Bankruptcy Partners is your premier choice. With decades of experience, personalized solutions, and affordable premium representation, we’re your express route to a fresh start. Contact us now for a consultation! We’re your threshold to your second chance.