Not everyone who is facing financial challenges is drowning in debt with no means of income to repay it. There are thousands of Americans who earn a decent income, but what they earn simply isn’t enough to keep up with even minimum payments on debts. Tennessee residents may believe that if they are employed and earning a good income, then they are not eligible for bankruptcy. But, that may not be the case.
People who find themselves in this position may be eligible to file for Chapter 13 bankruptcy. Chapter 13 is quite different from the more common, and more understood, Chapter 7 bankruptcy. When filing for Chapter 13, a person is allowed to reorganize their debt and come up with a plan to repay it. The plan plays out over the course of a few years, typically three or five. The bankruptcy filing will include an assessment of the individual’s income and a realistic plan for repaying the debts that are owed.
One of the best aspects of a Chapter 13 bankruptcy filing is that it can be a means of stopping creditor harassment, or even stopping foreclosure. Unlike Chapter 7 bankruptcy, a person who files under Chapter 13 typically will not lose any property.
At our law firm, we attempt to help our clients on the path toward a fresh financial start by giving them the information they need about Chapter 13 bankruptcy and other debt relief options. Equipping our clients with as much information as they need is a move that we believe can lead to a better decision about dealing with debt. For more information, please see the Chapter 13 section of our law firm’s website.