Chapter 13 Bankruptcy
If you have fallen behind on your bills, you know you are facing very serious consequences, including foreclosure and repossession. Chapter 13 bankruptcy can be the answer to regaining control over your bills and may allow you to catch up with some debts and eliminate others.
I’m Steven Bilsky, a Memphis-based attorney with more than 39 years of Tennessee bankruptcy experience. If you are looking for a lawyer who will provide you knowledgeable guidance through the Chapter 13 bankruptcy process, I can help.
Chapter 13 Has A Plan
Through a Chapter 13 bankruptcy, you will pay your debts on a three- to five-year repayment plan without any interest or late fees. Chapter 13 bankruptcy is particularly useful for catching up with debts that cannot be eliminated in Chapter 7 bankruptcy, like mortgage arrears or vehicle loans.
Chapter 13 bankruptcy payment plans are frequently called wage earner plans because you create a “plan” that includes all of your expenses. You make monthly payments to the bankruptcy trustee and this necessitates that you have a steady income during the bankruptcy. Your monthly payments are based on your income.
Chapter 13 Can Help You With A Mortgage
The plan payments will be made during a 3 to 5 year period and the goal is to keep your important secured debts, like a mortgage or car payment, current. The Chapter 13 bankruptcy laws are complex, but with four decades of experience working with these plan, I have a good sense of what to expect and can explain what you need to do to be successful.
The Memphis Connection To Chapter 13
Chapter 13 bankruptcy has a long history in western Tennessee. It was created in 1938, during the Great Depression, through a law called the Chandler Act, named after former Memphis Congressman and Mayor Walter Chandler, who originally proposed the concept of wage earner payment plans to help working people recover from financial crises.