Chattanooga Chapter 13 Bankruptcy Lawyers

Assisting Clients With Chapter 13 Bankruptcy Matters in Chattanooga, Kingsport, & Tullahoma, TN

The rise in the cost of goods, housing, and other expenses has left many people in Chattanooga and the rest of the country scrambling to make ends meet. Many people are having to choose which bills to pay each month when there isn’t enough income to cover everything or relying on credit to cover expenses. Those who work in industries hit hard by layoffs, such as tech and marketing, may be especially struggling. If you are behind on your mortgage, car payments, or another secured loan, Chapter 13 bankruptcy gives you the opportunity to take control of your debt without sacrificing your property. In many cases, you don’t have to give up everything you have to be able to start over financially.

The lawyers at Tom Bible Law have extensive experience filing and overseeing Chapter 13 bankruptcies. We can help you determine if Chapter 13 is right for you and equip you with knowledgeable representation throughout the legal process. Whether you’re just in the beginning stages of considering bankruptcy or you’re ready to file as soon as possible, our attorneys can help.

Do you plan on filing for bankruptcy or have questions regarding your debt relief options? Get in touch with our Chattanooga Chapter 13 bankruptcy attorneys to discuss your case. With offices in Chattanooga and Tullahoma, we accept clients throughout Tennessee and North Georgia.

What Is Chapter 13 Bankruptcy?

Filing for bankruptcy is a way to get out from under overwhelming debt and get a fresh financial start. There are several options when filing for bankruptcy, but Chapter 7 and Chapter 13 are the most common types for individuals.

Some people refer to Chapter 13 bankruptcy as the “wage earner’s plan” because it allows filers who earn a steady income to pay all or a portion of their debts over a defined period. It can also be the better option for those who want to be able to keep some of their major assets, such as a home or vehicle.

Like with Chapter 7 bankruptcy, people who file for Chapter 13 receive an “automatic stay” from the bankruptcy court, which prevents creditors from foreclosing on their homes or repossessing their vehicles. This can immediately help you get on better financial footing, as you don’t have to worry about repossessions or even making payments while you’re waiting for the bankruptcy to process.

Here are some key features of Chapter 13 bankruptcy to be aware of:

Repayment Plan

Under Chapter 13, a debtor proposes a repayment plan to the court, outlining how they will repay their debts over an extended period. The plan typically includes monthly payments that consolidate and prioritize specific debts, such as mortgage arrears, car loans, or tax debts. Unsecured debts, like credit card debt, may be paid back at a reduced rate or possibly discharged in some cases.

The payment plan you propose must be approved by the bankruptcy court, and both the trustee and any affected creditors will have the chance to present any objections they may have to the plan. If the court believes the objections are valid, you may be required to amend the plan and represent it. Otherwise, the bankruptcy court will confirm the plan and advance your filing to the next step.

Debt Discharge

Once the debtor successfully completes the repayment plan, any remaining eligible debts may be discharged, meaning they are legally forgiven and no longer owed. This discharge provides individuals with a fresh start financially. However, there can still be challenges to be aware of after this step.

Not at all debts are dischargeable under a Chapter 13 bankruptcy, so you could come out of the filing still dealing with debt from past-due child support, student loans, and other bills. Filing for bankruptcy can also have a significant impact on your credit, depending on how much it was already affected by late payments.

It’s important to understand that having your bankruptcy discharged is the first step in recovering financially and not the last. You may still need help with budgeting and financial management or understanding how to build your credit back up.

Property Retention

Chapter 13 bankruptcy allows individuals to keep their property, including homes and vehicles, as long as they continue to make timely payments according to the court-approved plan. This feature makes Chapter 13 an attractive option for individuals who want to avoid foreclosure or repossession. It’s important to understand what your payment obligation will be and what debts aren’t subject to a bankruptcy filing to ensure you can afford to keep the assets you want. If there are any issues with this, our attorneys can help you determine what you need to do and how to develop a plan that meets your property-retention goals and is affordable.

Income Requirements

To be eligible for Chapter 13 bankruptcy, individuals must have a regular income that can support the proposed repayment plan. There are specific debt limits that apply, which may disqualify individuals with excessive debt from filing under Chapter 13.

To be eligible for a Chapter 13 bankruptcy, an individual must have a debt total below $2,750,000. This total includes both secured and unsecured debts. You must also have the financial means to make the required payments on your debt over a period of 3 to 5 years.

It’s essential to consult with a qualified bankruptcy attorney to understand the specific requirements and implications of filing for Chapter 13 bankruptcy. They can provide personalized guidance based on your financial situation.

What Is Considered Stripping Second Mortgages?

Another reason people use Chapter 13 bankruptcy is to strip second mortgages. If you are “upside down” on your first mortgage, meaning you owe more than your house is worth, Chapter 13 can eliminate a second mortgage on the home. This option is only possible if the house is your residence and you currently have no equity.

If this is a possibility for your situation, it can make it much easier to afford your monthly bills, as the payment on a second mortgage is often substantial. However, if this is your main goal for the Chapter 13 bankruptcy, it’s critical to understand exactly how this process works and whether it’s a possibility in your case before you get started. Our Chapter 13 bankruptcy attorneys can talk with you and discuss this option.

How Much Is Bankruptcy Chapter 13?

The cost of filing Chapter 13 varies depending on factors such as attorney fees and the complexity of your situation. As of 2024, the filing fee is $313 for Chapter 13. It is important to note that the fee is subject to change every few years, so be sure to visit the U.S. Courts Site to learn about the most up-to-date filing fees.

If you opt to work with a Chapter 13 lawyer, that will also affect how much Chapter 13 will cost you. It will cost more, but it will be beneficial in the long run. Bankruptcy is a convoluted matter, and it’s a struggle between creditors seeking repayment and consumers claiming inability to pay.

If you lack experience in legal documentation or persuasive argumentation, even the smallest errors could lead to significant losses. A practiced bankruptcy attorney understands the necessary paperwork and crucial deadlines. They are familiar with the presiding judges and the arguments that will yield the desired outcomes. Incorrect completion of paperwork can also lead to catastrophic consequences. Mistakes are less likely when you work with an attorney but are common for self-filing individuals.

Hiring an attorney significantly enhances your chances of success compared to attempting to file bankruptcy on your own. Consult with skilled Chapter 13 bankruptcy attorneys in Chattanooga to fully understand the costs involved with your filing.

Resolving Debt Through Chapter 13 Bankruptcy in Tennessee and North Georgia

Chapter 13 is a viable debt relief option for individuals and families who have fallen behind on home loans and other types of debt. It gives them the chance they need to catch up, reorganize their finances, and make their debts manageable.

It’s important to receive sound legal advice at each stage of the Chapter 13 bankruptcy process. Successful filings are not guaranteed. There are a number of situations that could lead a court to reject your petition or proposed repayment plan, leaving you to deal with debts and creditors.

Working with an experienced attorney can ensure that your petition and proposed payment plan meet the court’s requirements and have the highest likelihood of being accepted. If your petition is rejected or the court asks for an amended payment plan, our attorneys can help you revise it quickly and resubmit to ensure everything keeps moving forward.

How Our Chapter 13 Bankruptcy Attorney Can Help You

Filing for bankruptcy can give you peace of mind and take the burden of debt off your shoulders, but it’s a challenging and complicated process that requires the advice and counsel of an experienced bankruptcy attorney. At Tom Bible Law, we are committed to providing personalized legal support throughout your bankruptcy case, and we tailor our approach to each individual client to ensure we’re supporting their needs and goals. Here’s how we can help you.

Comprehensive Evaluation of Your Financial Situation

We’ll review your income, costs, assets, and debts to determine whether Chapter 13 bankruptcy is the best choice for your needs. Some people believe that their financial situation is dire and that bankruptcy is the only option, but this might not be the case. We have the experience to look at your financial situation and discuss your goals to determine if bankruptcy is the right choice or if there are alternative options. If you decide to move forward with a bankruptcy filing, we can help you choose the chapter that best fits your financial situation.

Developing a Feasible Repayment Plan

For bankruptcy filings like Chapter 13 that allow for restructuring debt and paying it off over time, our attorneys will help you create a repayment plan that complies with the bankruptcy laws and is tailored to your financial capabilities. The plan will allow you to catch up on overdue payments and resolve your debts over time. We also make sure that any proposed payment plan leaves enough money so you can afford your other living expenses and start rebuilding your financial health.

Stopping Creditor Harassment

Once you file for Chapter 13 bankruptcy, an automatic stay goes into effect, which prevents creditors from calling, suing, or attempting to collect on debts. This stay ensures that you aren’t subject to any adverse actions and can take some time to breathe and regroup as you go through the bankruptcy process. We’ll also ensure your creditors respect this legal protection. If you continue to get debt collection calls or a creditor tries to collect on a debt when the automatic stay is in place, our attorneys can handle this for you quickly and effectively.

Representation at Bankruptcy Hearings

Any time you have to appear in court or participate in a legal process, it’s normal to feel overwhelmed — and this is even more true when you’ve been dealing with financial strain and stress for months or even years. That’s where our legal team comes in. We will represent you in court, ensuring that your rights are protected and your interests are advocated for at every stage. We’ll handle all communications with the bankruptcy trustee and creditors, so you don’t have to. This representation ensures you can focus on planning for the future and recovering financially after the bankruptcy is discharged.

Ongoing Support and Guidance

Deciding to file for Chapter 13 bankruptcy is just the first step in a long journey. Most of these bankruptcy cases will last for several years as you make payments to creditors according to your plan, and your financial situation may change in that time. Our attorneys will keep you updated at every step of the process and continue to advocate for you. We’ll continue to inform you of adjustments to your plan and help you stay on track to successfully complete your repayment obligations.

Choosing Chapter 13 bankruptcy is a significant step toward financial recovery. With our help, you can confidently navigate the process and emerge from bankruptcy in a stronger financial position. We’re here to help you find the financial relief you rightfully deserve and start fresh with your finances.

Contact Our Chapter 13 Bankruptcy Attorneys in Chattanooga Today

At Tom Bible Law, our lawyers can negotiate with creditors and trustees on your behalf to secure more favorable repayment terms. We can also help you properly file your Chapter 13 petition and provide support during any 341 meetings, ensuring your interests are fairly represented. With over 18 years of experience, we have successfully handled countless bankruptcy cases (10,000+). You can trust us when we say that we’re determined to help you resolve your debt.

If you’re facing overwhelming debt and looking for a way to get a fresh financial start, Tom Bible Law is a Chattanooga bankruptcy law firm with experienced attorneys who can help. Call our office at 423-874-6628 today to schedule a free consultation and take your first step.