If you are struggling to save your home or your vehicle, you may want to consider whether filing bankruptcy can help save your property while you enter a plan to become current your delinquent debts. Filing chapter 13 bankruptcy offers debtors several advantages over liquidation, such as stopping foreclosure proceedings, halting repossessions of vehicles and allowing debtors to an extended period to reschedule their secured debts.

How Does Chapter 13 Bankruptcy Work?

Chapter 13 bankruptcy is commonly known as the wage earner’s plan or “reorganization” bankruptcy because it allows debtors with regular income develop a plan to repay all or part of their debts. Under this chapter, a debtor enters a repayment plan in which he or she will make installment payments to creditor over three (3) to five (5) years.

Chapter 13 Plan And Confirmation Hearing

A debtor’s repayment plan must be filed with the petition or fourteen (14) days after the petition is filed unless the Court grants an extension. When the plan is submitted for the Court to approve, it must provide payments of fixed amounts to the trustee on a regular basis. Once approved and confirmed, the trustee will then distribute the funds to the creditors according to the terms of the plan. 

Chapter 13 Plan Payments

A debtor must start making plan payment to the trustee within 30 days after the bankruptcy case is filed, regardless if the plan has not been approved by the Court. The debtor must make regular payments to the trustee either directly or through payroll deductions. In Tennessee, the trustees do not accept cash payments. All checks and money order must be made payment to the assigned chapter 13 trustee’s payment address or by sending in an online payment.

Can You Represent Me?

We represent debtors in Memphis Division of the Western District of Tennessee. This includes the following counties: Shelby, Fayette, Lauderdale and Tipton.

If you are considering chapter 13 bankruptcy, you need an experienced bankruptcy lawyer to help you understand if filing is best for your financial situation. Call us today at (901) 300-4994 or complete our Contact Form to schedule a free consultation. We are here to help.