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How can bankruptcy help create manageable payments?

Each type of bankruptcy offers Tennessee debtors different options for rebuilding their financial health. Whereas Chapter 7 bankruptcy involves the liquidation of a debtor's assets to pay off their loans and creditors, Chapter 13 bankruptcy uses a debtor's income to create a plan for the repayment of their obligations. It is important that debtors choose the right bankruptcy strategy for their individual needs.

Chapter 13 bankruptcy is the form of bankruptcy that allows individuals to create manageable payments for the repayment of their debts. During their Chapter 13 bankruptcy proceedings, individuals offer repayment plans that identify their debts and their disposable income. They may spread those payments out over time, and not all of their debts may be included in those plans.

A repayment plan may help a debtor reduce the amount of money that they have to pay each month by spreading their obligation out and also by potentially reducing the amount that they owe after working with their creditors. Repayment plans can look different based on debtors' situations. Bankruptcy attorneys can help individuals interested in Chapter 13 bankruptcy learn more about plans that may serve their situations.

A manageable payment obtained through a Chapter 13 bankruptcy can vary based on the financial needs and situation of the debtor. Generally, Chapter 13 debtors are able to keep their possessions and use their incomes to reduce and then eliminate the debts that they are bound to pay. Consultation with a bankruptcy attorney is an excellent way for a person who is struggling to pay their debts to better understand just how this important legal process may serve their long-term financial needs.

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Mark T. Young & Associates
2895 Northpoint Blvd.
Hixson, TN 37343

Toll Free: 888-376-0282
Phone: 423-933-1606
Fax: 423-877-0363
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