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At the Tennessee law office of Mark T. Young & Associates, we understand the difficulties you may be facing due to unmanageable financial obligations. Our legal staff is directed by a specialist consumer bankruptcy lawyer Mark Young, who has more than 30 years of experience preparing and filing Chapter 13 petitions. His extensive experience and dedication enable him to guide individuals through the bankruptcy process effectively so they can achieve much-needed debt relief.
At the Tennessee law office of Mark T. Young & Associates, we prepare and file Chapter 13 bankruptcy petitions for individuals throughout Chattanooga. Our dedication and attention to detail enable us to file petitions effectively and efficiently. We are committed to helping individuals achieve debt relief.
Chapter 13 bankruptcy protection may be the best way to stop foreclosure and enable you to keep your home. Attorney Mark T. Young has more than 30 years of experience helping individuals throughout Chattanooga stop foreclosure, creditor harassment and legal actions through proper Chapter 13 representation. Notably, he is a specialist Consumer Bankruptcy lawyer who has exclusively devoted the past 15 years exclusively to bankruptcy representation.
The bills are stacking up, demanding calls and letters are arriving with increasing frequency and despite the best of efforts, the overdue debts just cannot be paid. In such cases, filing bankruptcy under Chapter 13 of the Bankruptcy Code may provide a solution to what seems like an insurmountable problem. Once considered a last resort, bankruptcy has evolved into an accepted method of resolving serious financial problems. If you are facing serious financial challenges, it is important to seek the counsel of an experienced bankruptcy attorney at Mark T. Young & Associates in Hixson, Tennessee, to determine whether filing under Chapter 13 is right for you.
Bankruptcy law provides two basic forms of relief: (1) liquidation and (2) rehabilitation or reorganization. Most bankruptcies filed in the United States involve liquidation, which is governed by Chapter 7 of the Bankruptcy Code. A reorganization or rehabilitation bankruptcy under Chapter 11 or 13 of the Bankruptcy Code is, however, the option often preferred by the courts. Under Chapters 11 and 13, creditors may be provided with a better opportunity to recoup what they are owed.
Chapter 13 has certain advantages over Chapter 7 in consumer bankruptcies. The biggest advantage for many people is that Chapter 13 allows individuals an opportunity to keep their homes and avoid foreclosure. Chapter 13 also permits individuals to reschedule secured debts and extend them over the life of the Chapter 13 repayment plan. In addition, Chapter 13 allows the debtor to discharge more types of debts than Chapter 7 does. Further, under Chapter 7, the court may order that all of the consumer’s assets be sold, whereas under Chapter 13 the debtor may be able to retain more of his or her assets. A consumer’s choice between Chapter 7 and Chapter 13 is not necessarily the last word; once bankruptcy proceedings have begun, a case may be converted to a different chapter. Once converted, however, the case may not be converted back again.
A consumer may choose bankruptcy under Chapter 13 if he or she has a stable income, believes the financial crisis is temporary and wants to repay at least some debt. The debtor must have less than $383,175 in unsecured debt and $1,149,525 in secured debt, however, in order to be eligible for Chapter 13. 11 U.S.C. § 109(e). These amounts are adjusted periodically.
Chapter 13 generally applies to individual consumers with smaller debts. Corporations and partnerships cannot file under Chapter 13, but self-employed individuals and owners of unincorporated businesses are eligible for Chapter 13. If the debtor is an individual with extremely large or complex debts or is a corporation, Chapter 11, which also allows for rehabilitation or reorganization, will generally be available. Farmers can file under Chapter 12, which provides for reorganization, and municipalities may file for Chapter 9 reorganization.
A Chapter 13 proceeding, often called a wage-earner plan, is initiated by filing a petition. As in Chapter 7 cases, the filing of the petition automatically stays (stops) creditors from trying to collect on most of their debts. 11 U.S.C. § 362. There is also a special automatic stay provision in Chapter 13 that protects co-debtors. A creditor generally may not seek to collect “consumer debts” from any individual who is liable along with the debtor. 11 U.S.C. § 1301(a).
Along with the petition, the debtor must also file a schedule of assets and liabilities, a schedule of current income and expenditures, a schedule of executory contracts and unexpired leases and a statement of financial affairs. The debtor must also file a certificate of credit counseling; evidence of any payments made by an employer received 60 days before filing; a statement of monthly net income and any anticipated increase in income or expenses after filing; and a record of any interest in federal or state qualified education or tuition accounts. 11 U.S.C. § 521. After filing the petition, a trustee is appointed to manage the case. 11 U.S.C. § 1302. Within 20 to 50 days after the debtor files the petition, the trustee holds a meeting of creditors. The debtor must attend this meeting and answer questions regarding financial issues and the proposed plan terms. 11 U.S.C. § 343. The judge must hold a confirmation hearing within 45 days of the meeting of creditors, at which time he or she will decide whether the plan is feasible and meets the Bankruptcy Code’s standards for confirmation. 11 U.S.C. §§ 1324, 1325. Creditors may ask questions about and object to the plan. If the court approves the plan, however, the creditors can take no action outside the plan’s scope to collect their debts.
Within fifteen days after the debtor’s filing of the petition, the debtor must file a plan that sets forth the details of how he or she intends to pay off creditors in the next three years (or, with the court’s permission, five years). Fed.R.Bankr.P. 3015. The plan must provide for fixed payments to the trustee on a regular basis and be submitted to the court for approval. If approved, the trustee will distribute funds to the creditors according to the plan’s terms. Within 30 days of filing, the debtor must start making payments under the plan to the trustee, even if the court has not yet approved the plan. 11 U.S.C. § 1326(a)(1).
There are three types of claims: (1) priority claims, which include most taxes and the costs of the bankruptcy proceedings; (2) secured claims, which are those for which the creditor has the right of recovering property (collateral) if the debtor does not pay; and (3) unsecured claims, for which the creditor generally has no special rights to collect against any property the debtor owns. The plan must pay priority claims in full unless a priority creditor agrees otherwise. Unsecured claims do not need to be paid in full as long as the plan provides that the debtor will pay all “disposable income” over an “applicable commitment period” and as long as unsecured creditors would receive at least as much under the plan as they would if the debtor’s assets were being liquidated under Chapter 7. 11 U.S.C. § 1325.
Once the debtor completes all payments under the plan, the debtor is entitled to a discharge, which releases him or her from all debts provided for or disallowed under the plan. To obtain the discharge, the debtor must also (1) certify that all domestic support obligations have been satisfied (if applicable); (2) complete an approved financial management course; and (3) have not received a discharge within two years in a prior Chapter 13 case or within four years in a prior case under Chapters 7, 11 or 12. 11 U.S.C. § 1328.
With Chapter 13 protection, you can place all of your debts and arrears into a three- to five-year repayment plan, which would enable you to have a payment that is more affordable. It is important that you consult with a qualified attorney who is knowledgeable and experienced in the intricate legal requirements of a Chapter 13 plan.
As with Chapter 7, filing for Chapter 13 provides immediate automatic stay protection. The automatic stay stops all creditor communication, as well as creditor legal actions.
Depending on your situation, you may be able to place the following into your plan:
If your driver’s license was revoked because you had an accident and did not have insurance, filing for Chapter 13 would allow you to get your license back. Also, if you have back property taxes on your home, you can place those in your repayment plan to prevent your home being sold to pay off your back taxes.
Attorney Mark Young has more than 30 years of experience handling complicated issues. As a dedicated bankruptcy attorney, he understands the astounding financial consequences associated with check advances, payday loans and title loans. The penalties, fees and interest involved with these loans can add up, creating additional financial stress. With Chapter 13, you can reduce your obligation by placing these into your plan and spreading out the payments three to five years.
Chapter 13 bankruptcy protection may be the best way to stop foreclosure and enable you to keep your home. Attorney Mark T. Young has more than 30 years of experience helping individuals throughout Chattanooga stop foreclosure, creditor harassment and legal actions through proper Chapter 13 representation. Notably, he is a specialist Consumer Bankruptcy lawyer who has exclusively devoted the past 15 years to bankruptcy representation.
A Chapter 13 discharge affects only those debts provided for by the plan. Any debts not provided for in the plan will remain, and the debtor will have to pay them in full, even after discharge. Additional exceptions to a Chapter 13 discharge may include: claims for spousal and child support, educational loans, drunk driving liabilities, criminal fines and restitution obligations, and certain long-term obligations (such as home mortgages or auto payments) that extend beyond the term of the plan. A lawyer at Mark T. Young & Associates in Hixson, Tennessee, can explain which debts are “erased” as a result of a Chapter 13 discharge and which will remain the obligation of the debtor.
Obligations obtained by false pretenses, a false representation, actual fraud or the intentional provision of false or incomplete financial information respecting the debtor or an insider on which the creditor relied are non-dischargeable.
Unscheduled debts, or debts not disclosed in the debtor’s petition, are non-dischargeable unless the creditor had actual or constructive knowledge of the debtor’s bankruptcy.
Domestic support obligations and obligations owed to a spouse, former spouse or child as a result of divorce or separation are non-dischargeable. The term “domestic support obligation” means a debt owed to or recoverable by a spouse, former spouse or child of the debtor in the nature of alimony, maintenance or support pursuant to a separation agreement, divorce decree or property settlement agreement. The effect of a discharge on child and spousal support obligations depends upon whether the debtor filed under Chapter 7 or Chapter 13 of the Bankruptcy Code. Whereas a Chapter 7 filing will have little effect on such obligations, a Chapter 13 proceeding may stop the collection activities, at least temporarily. The difference between chapters arises because, although all bankruptcies stop or “stay” creditors’ efforts to collect debts, the Bankruptcy Code excludes actions to collect child support or spousal maintenance from the stay unless the creditor attempts to collect from the “property of the estate,” and the different chapters of the Code define this term differently. In a Chapter 7 proceeding, “property of the estate” includes all possessions, money and interests the debtor owns at the time he or she files. Money earned after the bankruptcy is filed, however, is not property of the estate. Since most child and spousal support is paid out of the debtor’s current income, the bankruptcy should have little effect. Under Chapter 13, however, the Code considers the debtor’s earnings as property of the estate, since the wage-earner plan is based on making payments from the debtor’s current income rather than from liquidated assets. As a result, support collections may be stayed. The court can decide to remove the stay to allow for withholding alimony and child support from the debtor’s income. Whether it does so may depend on how well the wage-earner plan provides for child and spousal support. If the court does not believe that the plan includes adequate provisions, it may decide to lift the stay. Neither a Chapter 7 nor a Chapter 13 discharge affects post-discharge child or spousal support obligations. In other words, even at the conclusion of the bankruptcy proceeding, these on-going obligations remain.
Educational loans guaranteed by the United States government are generally not discharged by a Chapter 7 or Chapter 13 bankruptcy.
At the Tennessee law office of Mark T. Young & Associates , we prepare and file Chapter 13 bankruptcy petitions for individuals throughout Chattanooga. Our dedication and attention to detail enable us to file petitions effectively and efficiently. We are committed to helping individuals achieve debt relief.
Chapter 13 bankruptcy protection may be the best way to stop foreclosure and enable you to keep your home. Attorney Mark T. Young has more than 30 years of experience helping individuals throughout Chattanooga stop foreclosure, creditor harassment and legal actions through proper Chapter 13 representation. Notably, he is a specialist Consumer Bankruptcy lawyer who has exclusively devoted the past 15 years to bankruptcy representation.
Bankruptcy has a long-lasting impact on a person’s credit rating and on his or her ability to obtain credit in the future. The impact is not entirely negative. In some cases, filing bankruptcy may actually improve a bad credit rating, though. In addition, there are a number of steps a person can take to improve his or her credit after bankruptcy. An experienced bankruptcy attorney at Mark T. Young & Associates in Hixson, Tennessee, can offer valuable advice about how credit can be improved after a bankruptcy, and how to work for a better financial future.
Most of the debtors who consider filing bankruptcy already have poor credit histories. Their credit ratings have suffered because of slow payments, late payments, repossessions, extended credit, charge-offs, foreclosures or judgments. After their bankruptcy, however, the discharged debts will no longer count against their income, so their credit may be better after the discharge than it was before. In addition, while a bankruptcy case will remain on an individual’s credit report for up to ten years; late payments stay on for up to seven years, so the effects are similar. Bankruptcy, however, gives consumers a chance to improve their credit faster because they will have an improved debt-to-income ratio after discharge.
Still another way to re-establish credit after a bankruptcy is to obtain a loan with a co-signor whose positive credit convinces the bank or other lender that the loan is a safe bet. As payments are made on the cosigned loan, the positive credit history affects both borrowers.
One “credit repair” method to avoid after bankruptcy is seeking help from an unscrupulous “credit-repair service.” Many consumers pay substantial sums of money to so-called “credit clinics” to “fix” their credit reports when, in actuality, only time can improve bad credit. A credit repair service or clinic can legally do nothing that a consumer cannot do on his or her own, for free.
Chapter 13 of the federal Bankruptcy Code allows a consumer to repay some or all of his or her debts through a payment plan approved by the Bankruptcy Court. When the plan is in place, creditors generally are prohibited from collecting debts directly from the debtor. Instead of paying his or her creditors directly, the debtor pays a certain amount every month to the Chapter 13 trustee, and the trustee distributes the money to the creditors, as provided in the Chapter 13 plan. When the last payment is made, the debtor receives a discharge for the remainder of his or her dischargeable debts.
A Chapter 13 plan lasts 36 to 60 months.
Chapter 13 is the preferred choice for a person who wishes to repay some or all of his or her unsecured debts, and whose income is sufficient to allow him or her to do so in a reasonable amount of time. In addition, if the debtor has a considerable amount of nonexempt property or a lot of valuable exempt property used as security for debts, this property could be lost in a Chapter 7 case, so Chapter 13 may be the preferred option. Some other types of debtors, whose debts might not be discharged under Chapter 7 and those with one or more large debts that may be discharged only under Chapter 13, might opt for Chapter 13 over Chapter 7.
The plan may pay any and all debts of the debtor, including secured and unsecured debts, and even debts that are non-dischargeable, such as student loans and spousal and child support.
The trustee in a Chapter 13 case is someone who is appointed by the Bankruptcy Court to receive the regular payments from the debtor, distribute those payments to the creditors according to the Chapter 13 plan and administer the bankruptcy case until it is closed. The debtor is always required to cooperate with the Chapter 13 trustee.
Yes. A self-employed person meeting the eligibility requirements may file under Chapter 13 and may continue to operate her or his business during the resolution of the bankruptcy case and the completion of the plan.
In some cases, a Chapter 7 case may be converted to a Chapter 13 case at the request of the debtor at any time before the case is closed unless the case was converted previously from Chapter 13 to Chapter 7.
Our legal team is available to discuss your situation at 423-933-1606 or toll-free at 423-870-5225. You may also send us an email to schedule your free consultation. We are conveniently located and offer handicap accessibility, as well as free parking.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.
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