If you are considering a Chapter 13 bankruptcy, something you might also be worried about is not being able to make your monthly payments on time for the length of the bankruptcy. This is something that you should discuss with your attorney because there is a possibility of a Chapter 13 hardship discharge if you're unable to complete the program in some cases.
You've been working hard to stay out of debt and to make sure you can pay your bills, but the debts have really piled up. You tried not to add to it, but you've found that your interest rate is making your debt grow even though you're paying the minimum payments each month.
Chapter 13 bankruptcy is aptly named the "wage earner's" bankruptcy plan. This is because it's usually available to those who earn a decent wage and make too much money to qualify for Chapter 7 bankruptcy.
Chapter 13 bankruptcy is not the same as Chapter 7, yet it often gets the same amount of disdain from those who talk about it. While bankruptcy is often perceived negatively, the reality is that any kind of bankruptcy can have benefits for the person who is struggling financially.
Individuals who file for Chapter 13 bankruptcy in Tennessee could potentially have a second mortgage lien stripped. Chapter 7 cases only deal with unsecured debts, and this is why a lien cannot be stripped in a liquidation bankruptcy. Typically, debtors are allowed to have the lien stripped after completing a three- or five-year repayment plan. During the repayment period, the second mortgage balance will be converted from secured to unsecured debt.
When a debtor chooses to file for bankruptcy, a trustee is assigned to oversee the case. This is because the debtor's property is put into a bankruptcy estate, which is a separate entity from the person who is filing for bankruptcy. This is generally true whether a person is filing for bankruptcy in Tennessee or any other state, and it is also true whether an individual is pursuing a Chapter 7 or 13 proceeding.
Personal bankruptcy protections are designed to help struggling consumers get back on their feet and to help them with the weight of crushing debt. One type of personal bankruptcy protection is Chapter 13 bankruptcy which is a reorganization bankruptcy option.
Exploring different bankruptcy options is helpful for those facing overwhelming debt to do. By understanding the different personal bankruptcy protection options available, those considering filing for bankruptcy can determine the best option for them.
Keeping and protecting a family home can be one of the most stressful and important concerns a struggling homeowner faces. One option to consider that might be able to help is chapter 13 bankruptcy protection. There are different personal bankruptcy protection options that can help struggling consumers and homeowners in different situations and it is beneficial to be familiar with all of them.
Chapter 13 bankruptcy is important for struggling consumers, homeowners and others to understand. The importance of Chapter 13 bankruptcy protections to consumers cannot be overstated if they wish to enjoy debt relief but want to retain their assets, including a family home in some circumstances.