Chapter 13: Debt Reorganization

When debts become unmanageable and bankruptcy becomes necessary, the question for many people is whether to seek a quick solution by way of a Chapter 7 bankruptcy or reorganize debts and repay them over time. A Chapter 13 bankruptcy offers the opportunity to reorganize and pay back debts over five years.

A means test mandated by the government will determine whether you quality for a Chapter 7 debt discharge bankruptcy. If not, Chapter 13 is a likely possibility. Most people struggling with debt can qualify to repay over several years through a Chapter 13 bankruptcy.

In Chapter 13, you follow an affordable five-year plan to pay off your existing debts, usually with reduced or no interest. This can help provide you with the structure you need to get your bills under control. Additionally, any unpaid, unsecured debts left over at the end of the plan will be discharged.

Some Debtors Have Their Own Reasons For Choosing Chapter 13 Bankruptcy

Some debtors want to repay their debts as a matter of principle. They may have moral objections to the basic premise of a Chapter 7 bankruptcy, which is to leave creditors holding the bag. A Chapter 13 bankruptcy may seem more ethical to these people. Other debtors need a way to resolve back mortgage premiums, taxes, student loan payments or child support — and Chapter 13 fills the bill. Some choose Chapter 13 bankruptcy to keep their house or car or other major assets.

Whatever your unique situation and point of view about bankruptcy, you should consult with a knowledgeable attorney. A lawyer working with you one on one can evaluate your specific circumstances and clarify misunderstandings. Bankruptcy is not a "one-size-fits-all" proposition. There is no substitute for personalized legal counsel.

Contact A Memphis Area Debt Relief Attorney

At The Childress Firm, PLLC, you can count on reliable information and clear guidance. From law offices in Bartlett, we serve clients throughout Shelby County, Tennessee, and beyond. Schedule a free consultation by calling 901-318-3719 or emailing us through this website.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.