presented by: Gary Massey
Unlike the more common form of Chapter 7 bankruptcy where the process liquidates an individual’s assets in order to wipe a heavy debt slate clean, Chapter 13 bankruptcy provides protection for individuals who are seeking additional terms and time to pay off debts. Simply put, when a person files for Chapter 13, he or she seeks to restructure debt with the goal of paying a portion or the entirety owed to creditors in the future, instead of liquidating assets.
One of the primary qualifications for filing Chapter 13 is that the individual must have a consistent income to request alterations or reductions to loan rates in order to be approved. From start to finish, the process is monitored by court officials who must sign off on modifications of interest or repayment timing. With a qualified attorney, an individual filing for Chapter 13 creates a written plan that outlines the new terms of payment, which must start between 30 and 45 days after the case was filed. U.S. Bankruptcy Code provides a maximum of five years for debtors to pay back creditors under the new terms.
One draw to Chapter 13 for a qualified candidate is the potential to fully discharge from the plan if the remuneration is completed as outlined. Another possible benefit of Chapter 13 is that new terms of repayment can be made regardless of creditor approval. The only ultimate approval a debtor must obtain is from the court; however, creditors may voice protests during the process, petitioning the courts on certain items. For all these reasons, Chapter 13 bankruptcy cases can be very complicated. Qualified legal representation is imperative in crafting an advantageous plan, as well as navigating the rigorous court negotiations and fending off hungry creditors. If you’re filing for Chapter 13 in Chattanooga, call the Tennessee bankruptcy attorneys with Massey & Associates, P.C. at (423) 396-0720 for a free and confidential consultation.
Gary Massey, Jr., is a well-known courtroom advocate practicing law in Chattanooga, Tennessee. Gary is a native of Tennessee who began practicing law in 1998. He graduated from Cumberland School of Law where he was ranked in the top 3% of his class and was an editor of the Cumberland Law Review.
