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.
Chapter 13 bankruptcy protection is an important type of personal bankruptcy protection to be familiar with because it can help an individual with a reliable source of income but drowning in debt reorganize those debts and repay them over a more manageable time period. This can help a struggling consumer or homeowner hang on to their assets such as a car and remain in their family home while they repay creditors and pay off their debt.
For homeowners who have fallen behind in mortgage payments and are unable to get caught up, and are facing possible foreclosure, it is important for them to be familiar with the legal resources available to help them which can include bankruptcy protections. Chapter 13 bankruptcy can provide relief for a variety of concerns struggling homeowners are facing.
Chapter 13 bankruptcy is one of the two major types of personal bankruptcy protection. It involves working with the bankruptcy court to develop a repayment plan that allows the filing party to repay their debts over a period of time which is typically three to five years. At the end of the process, they can enjoy debt relief.
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.