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Retain Your Home And Car With A Knoxville Chapter 13 Attorney

By Cameron S. Schippers


Usually when an individual declares bankruptcy others view it as a way to discharge all debt. This may be the case with a chapter 7 bankruptcy. But, it is not true in the case of filing a chapter 13. This is available to those with an income sufficient to support their current lifestyle and at the same time pay off their past debt. A Knoxville chapter 13 attorney can assist you in keeping a home and car.

The chapter 13 is frequently referred to as a reorganizational bankruptcy. Your income must be proven sufficient to the court before you can file. You may be required to go through a credit counseling course before approval. It is at the discretion of the federal court.

An experienced attorney will advise you and help you through the entire process. Being in financial distress makes it difficult to decide what to do. The lawyer will help you make the best decision relying on past experience in this branch of the law.

Most lawyers offer a no-obligation meeting to decide if you want to hire her or him. You can find out whether you are eligible to file for a chapter 13. Select an attorney willing to explain things to you. That is someone likely to remain available while the repayment schedule is being met.

After analyzing all your debts a monthly payment amount will be set up. Payment will be made to a Chapter 13 Trustee, not the creditors. The trustee takes over paying the creditors a certain amount every month. You may take from three to five years to finish payments.

The court stops all garnishments and harassing phone calls from the companies you owe money to. You can stop a foreclosure on your house. You can reclaim a vehicle that was repossessed. However, these things must be done quickly. For example, if your vehicle has already been resold you will not get it back.

The house and car payments can be caught up on, thus allowing you to keep them. Other debts, such as medical bills, credit card debts and personal loans, are handled differently. You may be allowed to pay a lower interest rate on those debts.

This is beneficial to you to have all interest stopped when your bankruptcy case is accepted by the court. Back taxes, back child support and alimony can be caught up on over time. Some debt may be dismissed and others accept partial payment.

No corporations are eligible to file a chapter 13 bankruptcy. It is intended to help consumers and some small businesses only. This way to clear up all debt is fair to both yourself and the creditors who will be repaid. It is an equitable way to settle all your outstanding debt.




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