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A Chapter 13 repayment plan can bring debt relief to many

Many people Chattanooga may avoid filing for bankruptcy, despite being unable to make ends meet each month, due to the stigma associated with it. However, this stigma is entirely unwarranted. Financial difficulties can happen to even the most responsible and hard-working individuals, and debt forgiveness through bankruptcy is a means to help these people put their financial difficulties behind them and get a fresh financial start.

When a person thinks of bankruptcy, the first thing they may think of is Chapter 7 liquidation bankruptcy, in which a person's assets are sold to pay off their debts. After that, what cannot be paid back, with some exceptions, is forgiven. However, there is another type of bankruptcy that may be more attractive to some, Chapter 13 bankruptcy.

Through Chapter 13 bankruptcy, a person will reorganize his or her debts to create a court-approved repayment plan that addresses these debts in a manageable manner. Each repayment plan is unique and based on that particular person's needs. Sometimes a Chapter 13 bankruptcy pays a person's creditors back in full, while some allow the person to repay his or her debtors back in very small amounts if necessary. A Chapter 13 repayment plan will go on for either three years or five years, based on how much disposable income a person has. Once the repayment plan is completed, any remaining dischargeable unsecured debt a person has will be forgiven.

Choosing between Chapter 7 bankruptcy and Chapter 13 bankruptcy is not always easy, as both types of bankruptcies have their advantages. Moreover, it is important to make fully informed decisions in such situations, in order to reach the most appropriate outcome. For these reasons, it may be a sound idea to consult with an attorney before making any decisions with regard to filing for bankruptcy.

An attorney can examine your specific financial situation, and explain how each type of bankruptcy will affect you. An attorney can also take care of the legal details involved with filing for bankruptcy, some of which can be quite complex.

Attorney Kenneth C. Rannick, P.C., has filed over 14,000 bankruptcies for his clients, since 1988. He can answer his clients' questions regarding bankruptcy and guide them through the process in an informed and appropriate manner. Our law firm's website may be a good starting resource for Chattanooga residents considering filing for bankruptcy.

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-624-4002
Toll Free: 800-257-7594
Fax: 423-624-0509
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