Do I Qualify For Chapter 13?

Dedicated Knoxville bankruptcy attorney assists with financial reorganization

You may be considering Chapter 13 bankruptcy if your home is in danger of foreclosure or you have other mounting debts that you cannot foreseeably pay off in the short term. At the Knoxville firm of William E. Maddox, Jr. LLC, Attorney at Law, I help Tennesseans determine if they qualify for Chapter 13, prepare documentation necessary for filing and offer guidance throughout the bankruptcy process. I also advise clients on exemption rules and unexpected challenges that might arise.

Knowledgeable Tennessee bankruptcy lawyer advises on Chapter 13 criteria

Chapter 13 bankruptcy can be beneficial for people who are grappling with overwhelming consumer debts and who have the capacity to repay part or all of that debt through a repayment plan lasting between three and five years. Some people choose to file for Chapter 13 relief because they would not qualify under the means test used for Chapter 7 debt discharge. After reviewing your circumstances, my firm can advise which path works best. If that’s Chapter 13, I can help you devise a strategic plan for managing your debt and submit it to the court.

Experienced Chapter 13 adviser outlines income, job and debt qualifications

Clear and meticulous documentation is essential to the development of an appropriate payment plan. You will need to provide certain information to the bankruptcy court when filing your Chapter 13 petition, including evidence of your:

  • Income — You can only file for Chapter 13 bankruptcy if you earn a steady income that covers your regular monthly expenses with disposable income consistently left over to contribute to a repayment plan. This income may be from employment or another source, such as rental income, retirement income or a trust.
  • Debts — The court requires a list of all the creditors you owe, the amount you owe and the due date of the debt. To qualify for Chapter 13, your secured debt and unsecured debt must be under the limits published in the most updated version of the U.S. Bankruptcy Code. A secured debt is based on collateral, such as a house or vehicle that can be reclaimed. Unsecured creditors are not entitled to repossess any specific asset if the debt is not paid. Medical debts and credit card debts are examples of unsecured debt.
  • Assets — The court will need a comprehensive accounting of your assets, including bank account funds, investments, the equity in your home and other property.

A final step in qualifying for Chapter 13 is the completion of an approved credit counseling course within six months prior to filing your bankruptcy petition. During the course, you may develop a repayment plan to submit with your petition, and a bankruptcy lawyer can help you make any necessary alterations to the plan.

As your Chapter 13 attorney, I will provide advice, assistance and representation as you prepare to file and then undertake the steps necessary to resolve your debts.

Contact a skilled East Tennessee Chapter 13 bankruptcy attorney for your free consultation

At the Knoxville office of William E. Maddox, Jr. LLC, Attorney at Law, I provide legal guidance to people looking to file for Chapter 13 bankruptcy in Tennessee. To schedule a free consultation, call 865-672-8496 or contact me online.

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