For a variety of reasons, a person might live from paycheck to paycheck without the ability to pay all their bills. Divorce, illness, the loss of a job, and other life-changing events happen that alter the financial status of a person. If an individual faces this type of situation, they should contact a Chapter 13 Bankruptcy Attorney in Kingsport TN.
Bankruptcy is a scary word for many people because they think they will lose everything if they file bankruptcy. With a Chapter 13 bankruptcy, an individual can keep many of the items they already own. This bankruptcy is not a complete liquidation of assets like Chapter 7 bankruptcy offers.
Working Bankruptcy
Chapter 13 bankruptcy is ideal for an individual who has a regular income to pay their debt if the payments were lowered. It restructures the debt they have and establishes a repayment plan to the creditors. The repayment plan is less than they currently pay, and every payment must be made. The repayment plan is usually three to five years. After the repayments are complete, the creditors will forgive the balance of the debt.
Keeping A Home
A person who files Chapter 13 bankruptcy can keep their home if they can afford the payment for their home. Keeping a home is important for many individuals, but they must understand that the court-appointed trustee will collect their payments each month and disbursing their payments. They will not make the payments directly to the bank.
Eliminating Debt
Some debts cannot be erased by filing bankruptcy. These include child support, alimony, student loans, and taxes. Chapter 13 will stop foreclosure on a home and any foreclosure proceedings that are currently in the works. Filing bankruptcy is very confusing, but a Chapter 13 Bankruptcy Attorney in Kingsport TN can help an individual through this process.
If you’re facing foreclosure of your home and the inability to keep ahead of the bills, now is the time to think about filing bankruptcy. Restructuring debt can provide the relief you need and allow you to keep the assets you have. Browse our website to learn more about bankruptcy.
