
Chattanooga Chapter 13 Bankruptcy Lawyers
If you are behind on your mortgage, car payments, or another secured loan, Chapter 13 bankruptcy gives you the opportunity to take control of your debt, without sacrificing your property.
The lawyers at Tom Bible Law have extensive experience filing and overseeing Chapter 13 bankruptcies. We can help you determine if Chapter 13 is right for you and equip you with knowledgeable representation throughout the legal process.
Do you plan on filing for bankruptcy or have questions regarding your debt relief options? Get in touch with our Chattanooga Chapter 13 bankruptcy attorneys to discuss your case. With offices in Chattanooga, Tullahoma, and Kingsport, we accept clients from throughout Tennessee and North Georgia.
Call (423) 690-7712 or use our contact form to request a free consultation with Tom Bible Law.
What is Chapter 13 Bankruptcy?
Some people refer to Chapter 13 bankruptcy as the “wage earner’s plan,” because it allows filers who earn a steady income to pay all or a portion of their debts over a defined period. Like with Chapter 7 bankruptcy, people who file for Chapter 13 receive an “automatic stay” from the court, which prevents creditors from foreclosing on their homes or repossessing their vehicles.
When filing for this type of bankruptcy, you will work with a court-appointed trustee to create a repayment plan and present it to the judge. The judge must approve it before it takes effect. The plan will typically consist of one monthly payment for a period lasting between 3 to 5 years, with the length of time depending on the nature of your debt and your specific financial circumstances. The trustee also has the job of ensuring you follow the agreed-upon plan. It’s important to know that creditors are allowed to object to specific terms of these plans, although they rarely do so.
Bankruptcy repayment typically resolves secured debts first, then unsecured ones. Secured debts are connected to something physical, like a car or a house. If you don’t pay what you owe, creditors may try to liquidate these assets. Unsecured debts, on the other hand, are not backed by collateral, meaning the lender cannot repossess your assets to pay them back. Chapter 13 can resolve both these debts by allocating a specific portion of your monthly payment to each of your creditors.
Stripping Second Mortgages
Another reason people use Chapter 13 bankruptcy is to strip second mortgages. If you are “upside down” on your first mortgage, meaning you owe more than your house is worth, Chapter 13 can eliminate a second mortgage on the home. This is only possible if the house is your residence, and you currently have no equity in it.
Resolving Debt Through Chapter 13 Bankruptcy in Tennessee and North Georgia
Chapter 13 is a viable debt relief option for individuals and families who have fallen behind on home loans and other types of debt. It gives them the chance they need to catch up, reorganize their finances, and make their debts manageable.
It’s important to receive sound legal advice at each stage of the Chapter 13 bankruptcy process. Successful filings are not guaranteed. There are a number of situations that could lead a court to reject your petition or proposed repayment plan, leaving you to deal with debts and creditors.
At Tom Bible Law, our lawyers can negotiate with creditors and trustees on your behalf to secure more favorable repayment terms. We can also help you properly file your Chapter 13 petition and provide support during any 341 meetings, ensuring your interests are fairly represented. With over 18 years of experience, we have successfully handled countless bankruptcy cases (10,000+). You can trust us when we say that we’re determined to help you resolve your debt.
Call (423) 690-7712 to discuss your debt relief options with our Chattanooga Chapter 13 bankruptcy attorneys.
Whether you have questions or you’re ready to get started, our legal team is ready to help. Complete our form below or call us at (423) 690-7712.