Once a Tennessee debtor realizes that bankruptcy is the only option and Chapter 13 is the optimal choice, there will be other issues that must be fully understood as part of the process. Adhering to the Chapter 13 plan is a key to getting debt relief and a fresh financial start, but debtors might be concerned about how much they must pay back and what will happen if they fail to keep up with the payments. Having information about these issues is crucial to having a successful outcome.
Tennesseans who are drowning in debt and desperate to make a fresh financial start will often see Chapter 13 bankruptcy as a financial lifeline. Chapter 13 is different from Chapter 7 in that there is no liquidation, and there will be a payment plan for three to five years.
Tennesseans who are moving forward with a bankruptcy under Chapter 13 must understand when the payments must start and its connection to the confirmation hearing. Since Chapter 13 is a repayment plan rather than a liquidation and, depending on the situation, the payments are required to be made within three to five years, the timing of when the payments will commence is vital. So too is the confirmation hearing.
Tennesseans who are experiencing financial challenges and have chosen to move forward with a Chapter 13 bankruptcy will undoubtedly understand the basics of the program once they choose it over other alternatives. With a Chapter 13, a plan will be created so the debtor can repay all or some of the debts in a designated time-period of three to five years. For those who have a regular income, this is a sound method to getting a fresh financial start without having to go through a possible liquidation with a Chapter 7.
Many Tennessee residents may be hesitant to explore the possibility of a bankruptcy filing for the simple reason that they may think they do not know enough about the process to make a confident decision. As a result, they go on being burdened by overwhelming debt, struggling to make payments. However, for those who are earning an income, Chapter 13 bankruptcy may be the best option.
For consumers in Tennessee, there are two main options when filing for bankruptcy: Chapter 7 and Chapter 13. Chapter 7 is known as liquidation bankruptcy, as filers will generally list all of their non-exempt assets, which are then sold off to repay creditors and then remaining debts are discharged. Chapter 13 bankruptcy is quite a bit different. Chapter 13 bankruptcy includes a repayment plan.
Most people in Chattanooga know that there are different types of bankruptcy filings. However, they may not know the difference between these plans. For instance, what are the basics of Chapter 13 as opposed to Chapter 7 bankruptcy?
Many Chattanooga residents struggle to make ends meet. Whether scrambling to get a mortgage payment together or just paying the minimums on credit card balances, it can be tough to be in a tight financial situation. Sometimes those situations can become even tighter, even to the point where it feels like debt has taken hold of everything in a person's life. There are ways to seek debt relief and change the path of financial sorrow.
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.
Some people in Tennessee who are facing unmanageable debt, harassing calls from collection agencies and other financial hardships may decide that their best course of action is to file for Chapter 13 bankruptcy. When a person enters into a Chapter 13 repayment plan, in general he or she will have to make regular monthly or bimonthly payments to the bankruptcy trustee. The bankruptcy trustee then dispenses the payments to cover administrative fees and the person's debts. There is a certain priority schedule in which fees and debts will be paid.