Chapter 13

Knoxville Chapter 13 Bankruptcy Attorney

Helping Clients in Tennessee Repay Their Debts Over Time With Chapter 13

Known as a “debt repayment plan,” Chapter 13 bankruptcy provides debtors with a way to repay creditors through monthly payments over a 3-5 year period. Most people end up repaying a portion of their debts and have the remaining qualifying debt discharged.

Schedule a free consultation to meet with our experienced lawyers and regain control of your life. Our Chapter 13 bankruptcy attorneys are in Knoxville, Morristown, and Sevierville. We proudly serve clients throughout East Tennessee.

How Does Chapter 13 Bankruptcy Work?

Chapter 13 Bankruptcy is often referred to as a “wage earner plan” or a “debt repayment plan.” In some ways, a Chapter 13 bankruptcy is similar to the debt repayment program of the Consumer Credit Counseling Service, but there are significant differences.

Timeline: In Chapter 13 bankruptcy, the debtor files a “Chapter 13 Plan” with the Bankruptcy Court agreeing to make the best effort to pay off as much debt as possible over a three to five-year period of time. Some debts must be paid in Chapter 13; others need not be.
Repayment Plans: The debtor makes a monthly payment to a bankruptcy trustee determined by monthly take-home pay less monthly living expenses. For example, if take-home pay is $2,000 per month and living expenses are $1,800 per month, the payment to the trustee will be $200 per month.
Debt Discharge: Generally, in Chapter 13, secured debts must be paid in full, as well as “priority” debts (most back taxes and child support). Any funds left over after payment of secured and priority debts are split equally among the unsecured creditors. They each receive some percentage of what is owed, depending on the ability to pay. Most unsecured debts remaining at the end of the case are discharged. This is distinguished from Consumer Credit Counseling Service, where obligations are paid completely over an extended repayment period.

What are The Benefits of Filing for Chapter 13 Bankruptcy?

Consumers turn to Chapter 13, as opposed to Chapter 7, for two reasons: they fail to qualify for Chapter 7 or want to maintain their property.

There are several benefits that Chapter 13, including:

Get several debts discharged and pay back less than you owe
Keep the property that you are making payments on during the repayment period
Avoid missed payments, defaults, and lawsuits that would hurt your credit
Apply for a mortgage loan modification under the court's supervision
Catch up on past-due payments
Save your home from foreclosure
Prevent repossession of your property
Stop creditor harassment
Have more time to make your payments

Chapter 13 Eligibility - Do I Qualify?

Chapter 13 is ideal for individuals or couples who:

Have enough income to make the monthly payments
Have not had a previous bankruptcy dismissed 180 days prior
Are within the debt limitations
Are not eligible to file for Chapter 7

Businesses are not eligible for Chapter 13 and must file for Chapter 11.

How Much Is A Chapter 13 Bankruptcy?

The cost of filing for Chapter 13 can vary depending on several factors, including the complexity of your case and the fees charged by your bankruptcy attorney. There are also court filing fees associated with filing for Chapter 13:

Administrative Filing Fee: $78
Filing Fee: $235
Total Fee: $313

How Much Is The Average Chapter 13 Payment?

The average payments in a Chapter 13 repayment plan are different based on individual circumstances, such as your income, expenses, your priority debts, secured debts, and the value of your non-exempt assets. In a Chapter 13 bankruptcy, the repayment plan is based on your ability to pay and the requirements of the bankruptcy laws.

To determine the monthly payment specific to your situation, it is recommended to consult with knowledgeable Knoxville Chapter 13 lawyers. They can assess your financial circumstances, review your debts and income, and help you develop a repayment plan that is feasible and reasonable for your financial situation.

At The Law Offices Of Mayer & Newton, we offer a free consultation where our Chapter 13 lawyers can evaluate your case, provide personalized advice, and help you understand the potential payment requirements. Our experienced team is committed to helping individuals like you achieve debt relief and a fresh financial start.

Why Choose Us

Expertise in Chapter 13 Bankruptcy: Our attorneys specialize in Chapter 13 bankruptcy law, possessing in-depth knowledge and experience to effectively handle your case. We understand the nuances of Chapter 13 proceedings and can tailor strategies to fit your unique financial situation.
Client-Centric Approach: Our Knoxville Chapter 13 bankruptcy lawyers prioritize our clients' needs and concerns, offering personalized attention to each individual we serve. Our commitment to open communication ensures that you are informed and empowered throughout the bankruptcy process.
Comprehensive Financial Analysis: Before recommending Chapter 13 bankruptcy, we conduct a thorough analysis of your financial situation. This enables us to develop a customized repayment plan that addresses your specific debts and financial goals.
Legal Advocacy and Protection: The Law Offices Of Mayer & Newton is dedicated to protecting your rights and interests throughout the Chapter 13 bankruptcy process. Our legal team advocates on your behalf, helping you achieve a favorable outcome and a fresh financial start.

Contact Our Chapter 13 Bankruptcy Lawyer

Chapter 13 bankruptcy is an excellent option for many individuals. However, the decision to file for bankruptcy is essential and should not be taken lightly. The Law Offices Of Mayer & Newton are here to evaluate your situation and offer sound legal advice on the right path forward. Our certified Knoxville bankruptcy lawyers have over 60 years of combined experience and have filed over 50,000 cases in the Eastern District of Tennessee. You can trust us to help you make the right decision for your future.

Contact The Law Offices Of Mayer & Newton today to schedule a FREE consultation with our Knoxville Chapter 13 bankruptcy lawyer!

Commonly Asked Questions

What are the debt limitations for Chapter 13 eligibility?

Chapter 13 is ideal for individuals or couples who are within the debt limitations set by the bankruptcy laws. These limitations determine the maximum amount of debt that can be included in a Chapter 13 repayment plan.

Can Chapter 13 help with mortgage loan modifications?

Yes, one of the benefits of filing for Chapter 13 bankruptcy is the ability to apply for a mortgage loan modification under the court's supervision. This can help individuals keep their homes and avoid foreclosure during the repayment period.

Are there alternatives to Chapter 13 bankruptcy for businesses?

Businesses are not eligible for Chapter 13 bankruptcy and must explore alternative options such as filing for Chapter 11 bankruptcy. Chapter 11 is specifically designed for businesses seeking debt reorganization and financial restructuring.

What happens if a Chapter 13 bankruptcy is dismissed?

If a Chapter 13 bankruptcy is dismissed, the debtor may face serious consequences such as losing the protection of the automatic stay, allowing creditors to resume collection actions. It is essential to work closely with experienced bankruptcy attorneys to avoid dismissal and navigate the bankruptcy process successfully.

Client Reviews

Hear It From the People We Have Helped

"I only had the pleasure of working with this office for a couple short years. These were some of the hardest years of my life and they helped tremendously with easing some of my burdens. This office ..."
Kyle Gartman
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Mary Neal
"Very happy client. The attorneys and staff went above and beyond to help me resolve my issues. They were polite, understanding, and passionate about my case. They always had my interests in mind, ..."
Casey
"They were able to help us to easily navigate the bankruptcy process, they were kind and knowledgeable, and treated us with dignity through a process that can be extremely distressing. John Newton is ..."
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