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Chapter 13 Overview: Repayment, Not Liquidation

Chapter 13 bankruptcy is often called "wage earners' bankruptcy." There is a reason for this.

In order to be eligible for a Chapter 13 bankruptcy, you must have some form of regular income, although the source of the income can be wages, unemployment benefits, Social Security, child support and other regular family contributions. Many wage earners desire to repay their debts; however, often they cannot pay according to all of the terms creditors are demanding.

Some individuals who have fallen behind on house and car payments and are facing foreclosure or repossession simply need time to repay back payments or restructure the debt over a new period of time. Chapter 13 allows for this type of repayment plan. Therefore, if you are worried about losing your home to foreclosure, having your wages garnished, or having your property repossessed by creditors, Chapter 13 may be the best option for you.

I am April Perry Randle, a Cleveland, Tennessee, bankruptcy attorney. I can help you protect your assets while getting a fresh start through a Chapter 13 bankruptcy proceeding. For more information, call me at 423-464-6908.

Control Your Assets |Chattanooga Attorney for Filing Chapter 13 Bankruptcy

A Chapter 13 puts you in the driver's seat, not your creditors. Our office will develop a repayment plan that we propose to your creditors on your behalf. This repayment can span over a five-year period if needed. Additionally, Chapter 13 typically lowers or eliminates interest rates and sometimes allows you to pay less than what is owed to the creditor while still eliminating the balance at the end of the repayment plan.

Additionally, one of the greatest advantages of a Chapter 13 versus a Chapter 7 is that it may allow you to protect all of your property, even if you have items that are worth more than what you would be allowed to retain if you filed a Chapter 7.

In general, Chapter 13 bankruptcy is a good idea if you:

  • Are in danger of losing your home due to missed payments, multiple mortgages, missed payments toward land taxes and property insurance or competing debts
  • Cannot keep up with your debt payments, but could catch up if given time
  • Wish to keep property that is more valuable than you could keep under Chapter 7 bankruptcy exemptions.

Learn more about Chapter 13 bankruptcy: For more detailed information about the Chapter 13 bankruptcy process, please read my " Chapter 13 in Detail" page.

Bankruptcy exemptions and realities: Bankruptcy will not leave you homeless and penniless. Find out why by reading my " Can I Keep My House & Property?" page. See common bankruptcy misunderstandings debunked on my " Bankruptcy Myths" page.

Call A Cleveland Chapter 13 Bankruptcy Attorney Today | Free Consultation

To discuss your options with a bankruptcy lawyer who wants you to have a fresh start, contact me online or by calling 423-464-6908.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.