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Nashville Personal Bankruptcy - Chapter 13
Personal bankruptcy in Nashville
Chapter 13 bankruptcy law firm of Robert L. Scruggs explains how filing Chapter 13 allows debtors to undergo financial reorganization to pay off personal debts. The wage earners’ plan, which is another name for Chapter 13 bankruptcy, allows individual debt adjustments for personal debts. A law firm specializing in Nashville Chapter 13 bankruptcy will assist the debtor with putting together a plan of repayments to either a portion of the debt or all. The financial reorganization allows the debtor three to five years of payment installments to their creditors depending on the debtor’s current monthly income.
If the debtor’s income is less than the state median then the plan is usually three years, and if the income is more than the state median the plan usually is for five years. During the three to five years of the installment plan, creditors are prohibited from any collection efforts from the debtor. Chapter 13 is different from Chapter 7 bankruptcy due to the fact that in Chapter 7 all of the debtor’s debts are completely wiped out through relinquishing property whereas Chapter 13 uses the debtor’s income to pay personal debts owed to the creditors without relinquishing property.
Chapter 13 Bankruptcy in Nashville
With the help of an insolvency law firm, Chapter 13 bankruptcy can have advantages for individuals with personal debts. Chapter 13 in Nashville provides individuals with the chance of protecting their homes from foreclosure by including delinquent mortgage payments into their financial reorganization plan. It also offers individuals the opportunity to reschedule secure debts throughout the three to five years of the installment plan. During Chapter 13 bankruptcy debt relief attorneys and the trustee will have direct contact with creditors relieving the debtors of that responsibility.
If there are third parties that are liable with the debtor, such as a co-signer, they are protected when filing for bankruptcy under Chapter 13. Nashville Chapter 13 attorneys will be able to assess individual cases to see if it is in the best interest of the debtor and any third parties to file for financial reorganization.
