Get Debt Relief With the Help of an Experienced Bankruptcy Lawyer
Chapter 7 and Chapter 13 bankruptcy are similar in that both forms of bankruptcy provide immediate relief from creditor harassment, wage garnishments, lawsuits, repossession efforts, foreclosure and other collection efforts. Eligibility requirements and how debt is handled differs between the two forms of bankruptcy. An experienced bankruptcy lawyer can help you determine not only if bankruptcy is the right debt relief solution for you, but also can help you determine what form of bankruptcy can best suit your needs.
Questions About Chapter 7 vs. Chapter 13? I Can Help.
I am Holly Schumpert, a Memphis, Tennessee, attorney with over 15 years of legal experience. I understand that every situation is different. What achieves optimal debt relief for one client may not work for another client. That is why I provide a thorough legal and financial analysis to identify the needs and goals of the situation and tailor a solution to achieve optimal success, either through Chapter 7 or 13 of the Bankruptcy Code, or through another debt relief strategy.
Contact my bankruptcy law office for a free consultation and case analysis.
Chapter 7 Bankruptcy Basics — Tennessee Debt Elimination
Chapter 7 bankruptcy is the traditional form of bankruptcy that many refer to as bankruptcy debt liquidation or asset liquidation. Under Chapter 7 of the Bankruptcy Code, you can discharge (eliminate) a significant amount of debt. While you cannot eliminate child support obligations, student loans and other non dischargeable debts, you can discharge:
- Credit card debt
- Medical bills
- Some IRS debt
- Personal unsecured loans
- Old apartment debts
- Deficiency balances on repossessed automobiles
- Other general unsecured debts
The bankruptcy law changes in 2005 led many people to believe that Chapter 7 debt relief is no longer available, which is NOT the case. Many people are still eligible to file for bankruptcy debt relief.
A careful analysis of your income threshold is necessary to determine if you qualify for a Chapter 7 bankruptcy. However, even if your income is higher than the median income in your geographic region (for individuals with similar household sizes), there still is a possibility that you will be eligible for a Chapter 7 bankruptcy if your expenses or other deductions reduce your take-home pay enough to meet income thresholds for Chapter 7 bankruptcy eligibility (this is known as the bankruptcy means test). If you still do not qualify, Chapter 13 bankruptcy may be an option.
Chapter 13 Bankruptcy Basics — Memphis Debt Reorganization Repayment Plan Lawyer
Chapter 13 bankruptcy, frequently known as the wage-earner plan, enables you to consolidate and reorganize your debt into a manageable three- to five-year repayment plan that is approved by the Bankruptcy Court. The length of your repayment plan, and the amount of debt that you will be required to pay, is determined on a case-by-case basis.
A Chapter 13 debt repayment plan enables you to catch up on default mortgage payments, child support arrearages, defaulted car payments and other debt obligations — without incurring additional late fees and sometimes with no additional interest or at least reduced interest rates. Secured obligations, in most cases can be modified to make your payments more affordable, providing you the ability to save your property.
In order for your Chapter 13 bankruptcy to be successful, it is necessary to fully comply with the terms of your repayment plan — making regular and consistent payments to the trustee in accordance with the terms of your bankruptcy plan. If you should fall behind on your mortgage or on paying the bankruptcy trustee, your Chapter 13 bankruptcy could fail. Therefore, it is important to work with an experienced bankruptcy lawyer who can help you determine if a Chapter 13 bankruptcy is advisable.
File for Bankruptcy With Experienced Legal Help
Contact my bankruptcy law office for a free consultation to learn more about Chapter 7 versus Chapter 13 bankruptcy, and to determine what debt relief solution is right for you.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
