Richard Banks & Associates, P.C.
free consultations
local: 423-244-0009
toll free: 866-596-8527
Practice Areas

Cleveland Tennessee Bankruptcy Law Blog

Chapter 13 bankruptcy repayment plans help struggling consumers

Chapter 13 bankruptcy provides one path for struggling consumers to enjoy debt relief. While there are different personal bankruptcy options for struggling consumers in different situations, Chapter 13 bankruptcy is just one option to understand but can help struggling consumers reorganize their debts and enjoy a fresh financial start.

Chapter 13 bankruptcy allows the filing party the opportunity to reorganize their debts into a repayment plan they can pay over time. The filing party will need a reliable source of income to repay their debts but the repayment plan will give them 3 to 5 years to repay their debts. They may also be able to repay their debts at a lower cost. Provided they comply with the repayment plan worked out with the help of the bankruptcy court, they can enjoy a debt discharge at the end of the process.

Do you have to go in front of a judge for bankruptcy?

Despite the fact that thousands of people file for bankruptcy every year in the United States, there are still a lot of misconceptions about the practice. For example, a lot of people assume anyone who has to file for bankruptcy is irresponsible with money. The reality is that many people simply need help restructuring their debts after falling on hard times. 

Although you will require legal help to get you through the bankruptcy, many people find they never have to speak to a judge during the entire process. You will likely have to go to court at least once, but this is far easier than most people imagine. Everyone's case is different, but chances are good you will find that filing for bankruptcy is simpler than you first thought. 

Property protections for Chapter 7 bankruptcy filers

Bankruptcy exemptions are an important aspect of Chapter 7 personal bankruptcy protection to be familiar with. Chapter 7 bankruptcy protection involves liquidating assets to repay creditors but not all assets must be liquidated and that is important to know.

Chapter 7 bankruptcy exemptions protects certain types and categories of property from the Chapter 7 liquidation process. Struggling consumers and filing parties are still able to enjoy personal bankruptcy protection and receive a fresh financial start but may be able to protect homes, cars and personal property while still receiving a debt discharge. Protections are available through bankruptcy exemptions.

Bankruptcy protections can help struggling consumers

When home and car owners fall behind in mortgage and car payments, the fear, stress and anxiety can be overwhelming. Overwhelming debt can be difficult for struggling consumers to face each day which is why they should at least be familiar with legal protections and options available to them.

There are different types of personal bankruptcy protection that are available to help struggling consumers who either want to restructure their debts or liquidate their assets to repay creditors and enjoy debt relief and a fresh financial start. Different life events, such as the unexpected loss of a job or healthcare crisis, can result in an inability to pay the bills as they continue to stack up. This can be devastating to homeowners and others who wish to repay their bills.

What can Chapter 13 bankruptcy help with?

This blog recently discussed chapter 13 bankruptcy as one option to help struggling homeowners facing foreclosure. Struggling consumers considering filing for personal bankruptcy protection may wonder what else Chapter 13 bankruptcy might be able to help with.

The answer is that Chapter 13 bankruptcy can help struggling consumers enjoy debt relief. It is a personal bankruptcy protection option that allows a filing party with a reliable source of income to repay their debts over time and enjoy debt relief. Chapter 13 bankruptcy allows the filing party to develop a repayment plan with the help of the bankruptcy court to repay their debts over a three to five-year period. Once the filing party has completed the repayment plan, they will enjoy a debt discharge and fresh financial start.

How bankruptcy can help with foreclosure

The possibility of looming foreclosure may be one of the concerns that weights most highly on the minds of those struggling with overwhelming amounts of debt. It is important for anyone who finds themselves in that situation to be familiar with the different options that might help, including bankruptcy.

Foreclosure is a possibility when a homeowner has fallen behind on their mortgage payments. The foreclosure process is a lengthy process and typically does not begin until the homeowner is two to three months behind on their mortgage payments. There are different options that may be able to help and bankruptcy is one of them.

Debt a top risk of living paycheck to paycheck

Although the U.S. economy is now going stronger than it has been in a long time, not everyone is benefiting from the economic recovery. In fact, many Americans continue to live in a situation that qualifies as "paycheck to paycheck," in which they do not have any savings or financial cushion to protect them in the event of unforeseen circumstances.

While this situation is quite common, it carries with it several risks that can have difficult outcomes. If you find yourself living paycheck to paycheck, it is important you understand the risks and consequences of mounting debt so you can better understand your options. If you know the risks surrounding debt, you have a better chance of preparing for the potential consequences.

National bankruptcies dip but Tennessee filings remain high

Bankruptcy filings continue to decline, however, bankruptcy filings in Tennessee continue to remain amongst the highest per capita for bankruptcy filings in the nation. Throughout last year, Tennessee was second in the highest number of per capita bankruptcy filings. The American bankruptcy Institute reported that bankruptcy filings for 2018 continued to decline overall for the ninth consecutive year but the bankruptcy rate in Tennessee was the second highest in the country.

Individuals struggling with overwhelming debt should understand that bankruptcy options are available to them. Different personal bankruptcy options may be available to help guide struggling consumers through the process of achieving debt relief. There are parallels between the different processes but different personal bankruptcy options are designed to help struggling consumers in different situations.

The homestead exemption in Tennessee

Chapter 7 personal bankruptcy has important protections built into the process. One of the protections includes Chapter 7 bankruptcy exemptions which exempt certain property from the liquidation bankruptcy process. An important exemption to be familiar with the homestead exemption.

Chapter 7 bankruptcy is considered a liquidation bankruptcy process that allows the filing party to liquidate non-exempt assets to repay creditors and enjoy debt relief. Bankruptcy exemptions exempt certain categories of property from this process but are subject to certain limits. Additional wild card exemptions may be available when a property limit is reached or when property does not fall into one of the exempted categories. Exemptions may be available for a house, car, jewelry or other types of property.

How do I know if I qualify for bankruptcy?

Qualifying for bankruptcy is important for struggling consumers considering filing for bankruptcy protection to understand. First, it is important to note that here are generally two types of personal bankruptcy protection including Chapter 7 bankruptcy protection and Chapter 13 bankruptcy protection.

The two different types of personal bankruptcy protection differ in a couple of respects which also impacts how struggling consumers can be eligible for bankruptcy protection. Chapter 7 bankruptcy is a liquidation bankruptcy option that allows the fling party to liquidate non-exempt assets to repay creditors. Chapter 13 bankruptcy, on the other hand, is a reorganization bankruptcy process that allows the filing party to reorganize their debts and repay them over a more manageable period of time.