Questions About Chapter 13 Bankruptcy
Many individuals are worried about their finances. They see mounting credit card debt and medical bills and wonder if there is an end in sight. Fortunately, these individuals have many options at their disposal to get a fresh start.
The two most commonly sought-after methods of debt relief are Chapter 7 and Chapter 13 bankruptcy. Chapter 7 is a quicker program that essentially wipes out any unsecured debt, starting a family toward a more stable financial future. Unfortunately, not everyone qualifies for Chapter 7. Typically, there are two reasons an individual will not qualify:
- The individual did not pass the means test. The means test compares income for the family against the median income. In many situations, a family's income is just too high to qualify for debt elimination.
- If you have secured debt (for example a house or car loan) that you are behind on, you cannot force a reaffirmation. In these situations, the only option would be to file a Chapter 13 to catch up on arrearages while protecting your home against foreclosure.
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At Robert L. Scruggs Attorney at Law, we explain the many advantages of Chapter 13 bankruptcy to clients in need of help. The advantages are numerous, including:
- Being able to keep your home, car and other secured debt. Most people come in when the lender is about to foreclose and they want to keep the house. Through Chapter 13, they can catch up on their payments and keep the home.
- In Chapter 13, taxes can be another advantage. If you owe back taxes, in certain circumstances, these taxes can be repaid through the Chapter 13 repayment period.
- Another advantage is that Chapter 13 adds structure to your financial life. Each paycheck, one lump sum is taken out and given to a trustee. That trustee is responsible for taking the money and dispersing it to the proper creditors. This does not leave a great deal of disposable income, but it is easier to plan around. Many individuals find the ease of payment comforting.
If you are considering bankruptcy as an option for debt relief, do not hesitate to schedule a free consultation with a lawyer at our Tennessee office. We will provide honest feedback about your options and the best course of action in your unique situation.
Know your options. Know your rights. You can achieve debt relief today. Call 615-866-2408 or contact us by e-mail to arrange your FREE CONSULTATION directly with our lawyer.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
