“Mr. Long eliminated my stress regarding filing bankruptcy, answered all of my questions, and filed my documents with the court within just 2 days! He made the procedures to filing very easy for me without any added stress.”
“They are great at what they do. Mr. Burnett helped me through my bankruptcy
What Is Chapter 13 Bankruptcy?
Find out if Chapter 13 bankruptcy in Nashville is the right option for you.
Chapter 13 Bankruptcy, also known as Wage Earner Bankruptcy, is a form of bankruptcy relief allowing individuals with incomes to develop a plan to repay all or part of their debts.
In a Chapter 13, the big picture idea is to prepare a reasonable budget of your monthly expenses, compare this budget to your income, with the difference being what it is reasonable to pay toward your debts. With the help of a Nashville Chapter 13 Bankruptcy Attorney, a plan of payment is developed and this plan continues for 3-5 years. At the conclusion, the remaining unpaid debt is discharged (wiped out).
Chapter 13 provides for different treatment of such things as home mortgages, car loans, and student loans not available in Chapter 7 bankruptcy in Nashville. For many of our clients, their Chapter 13 plan payment is equal to or LESS than they currently pay for mortgage and car loans but includes all their other debt. Generally you do not give up your assets such as house or car under a Chapter 13, and qualification may be possible where you could not qualify for a Chapter 7.
A Chapter 13 Bankruptcy often provides the lowest initial cost to the filer, as filing fees and all or a portion of the bankruptcy attorney fees are paid through the plan instead of ahead of time. Sometimes this makes a Chapter 13 a preferred solution.
Under a Chapter 13 Bankruptcy, your income, debts, and assets are analyzed, and a plan is developed to use your income to pay a portion of your debts. Often this will include continuing payments to creditors such as your mortgage lender or car loan company. Often the interest rate on your car may be adjusted substantially down. Sometimes the amount you owe on your car can be reduced. Sometimes a second mortgage on your home can be removed.
After payments for these secured creditors are made, priority debt such as taxes and child support arrears are paid. The remaining portion of your payment is applied to unsecured creditors such as credit card companies, medical providers, payday loan companies, and those who have obtained a civil judgment. With a good Chapter 13 Bankruptcy Lawyer, this payment may be a very small percentage of the total you currently owe to this class of creditors.
For those delinquent on their mortgage payments or car payments, a Chapter 13 Bankruptcy plan will allow the repayment of the past due payments to be made over the 3-5 year life of the plan, eliminating the “acceleration” many lenders implement when payments are late. When you complete your Chapter 13 bankruptcy relief plan, you are back on track, current, with much of your debt gone so you can continue to pay your mortgage on time going forward.
Completing a Chapter 13 plan and obtaining a Chapter 13 bankruptcy discharge of your debt requires a commitment to financial responsibility. As part of the process you will attend a course on financial management. Through this and the preparation of your bankruptcy budget, you will begin learning the skills necessary to manage your financial life and avoid financial distress in the future. Thousands of families in your community have successfully completed Chapter 13 plans and found financial freedom.
Contact Long, Burnett, and Johnson, PLLC
If you need the help of experienced Ch. 13 Bankruptcy Lawyers in Nashville, TN, the attorneys at Long, Burnett, and Johnson, PLLC are experts in all matters having to do with bankruptcy, law, and finance. If you’re facing a bankruptcy, give us a call and take advantage of our FREE consultation session.