Chapter 13 Bankruptcy Lawyers Knoxville

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Can I save my home and car in a Chapter 13 bankruptcy in Knoxville?

In many cases, the answer is yes. Chapter 13 is used primarily to help homeowners and anyone with other types of secured property keep their home and secured property. Our Knoxville bankruptcy lawyers will explain how you can stop any foreclosure actions immediately by filing for Chapter 13 in Tennessee. We’ll help you identify all your secured assets, unsecured assets, income, and debts – starting with your mortgage. We’ll prepare the formal plan that must be submitted and approved by the bankruptcy trustee.

What are the steps in a Chapter 13 bankruptcy in Knoxville?

Our Knoxville Chapter 13 bankruptcy lawyers will guide you through each step of the Chapter 13 process. These steps include:

  • A pre-bankruptcy course. You need to attend an online or in-person pre-bankruptcy credit counseling course.
  • The bankruptcy petition. We’ll help you identify all your secured property, all your unsecured property, your secured debts, your unsecured debts, and your income. Once this information is obtained, we’ll file your Chapter 13 petition.
  • The automatic stay. As soon as you file your Chapter 13 petition, all credit collection and legal action must immediately stop – including foreclosure actions.
  • The Chapter 13 plan. The essentials of a Chapter 13 plan are these:
    • You must agree to pay the arrears on any secured debts over a three-to-five-year period.
    • You must agree to pay the future monthly mortgage payments and other secured payments (such as secured car loans) for the duration of the plan.
    • You must agree to pay some (you don’t have to pay all) of the unsecured debts during the duration of the plan. Normally, this amount is the income you have left over after you pay the secured payments and your daily living expenses.
    • If you have priority debts such as child support or tax liens, you need to offer to pay these debts in full – but you should be able to pay the arrears over the length of the plan. This gives you time to pay the arrears on priority debts. You must pay the new child support and any other priority payments as they become due.
  • Approval by the trustee.
    • You’ll need to attend a trustee’s creditors’ meeting (called a 341 meeting). At this meeting, the trustee will review your finance. Creditors can attend and ask questions – but they usually don’t attend the meeting.
    • The trustee in bankruptcy must approve your plan. In most cases, provided you agree to the plan payments described above, the trustee should approve your plan. Instead of making payments to each of your secured and unsecured creditors, you make one monthly payment to the trustee.

Can I protect my unsecured assets using Chapter 13 in Knoxville?

Yes. You can protect/exempt some of your unsecured assets. Tennessee exempts many of your assets (such as furniture, clothing, tools of your trade, Social Security benefits, and other assets and sources of income) up to specific dollar amounts. We’ll help you identify these assets, place a value on the assets, and request that these assets be exempted.

What happens financially after my Chapter 13 is completed?

Once you complete the terms of the plan, the bankruptcy judge should discharge your remaining unsecured debts. You’ll be able to continue living in your home, use your car, and use your other secured assets provided you may any outstanding payments on time.

Can you provide an example of a Chapter 13 plan?

An example of a Chapter 13 plan is this. Let’s suppose your home is worth $200,000. Your equity in your home is $50,000 and you still owe $150,000. Your monthly mortgage is $1,500/month. You are $12,000 in arrears. Your plan will propose the following:

  • You’ll continue to pay the future $1,500 a month mortgage payments as they become due.
  • If you want five years (60 months) to pay out the arrears, you’ll offer to pay $200 a month towards the arrears.
  • You’ll thus make a $1,700-a-month payment to the trustee (plus the trustee’s commission).
  • When you’ve completed the terms of the plan, you’ll need to pay off the balance of your mortgage at the rate of $1,500 a month.

Do you have a Knoxville Chapter 13 bankruptcy lawyer near me?

LaFevor & Slaughter is located at 900 South Gay Street, Suite 2006, in Knoxville. We maintain an additional office in Maryville. We also consult with clients by phone and through video conferences. We’ll review your financial options. When Chapter 13 is advisable, we’ll handle every step including the preparation of your Chapter 13 plan.

Speak with an experienced Knoxville Chapter 13 bankruptcy lawyer about saving your property

Nobody wants to lose their home. At LaFevor & Slaughter, we help homeowners by using the Chapter 13 bankruptcy process. As long as you can pay your future bills and a reasonable portion of your arrears, you should be able to keep your home – no matter how big or small it is. Our Knoxville bankruptcy attorneys have helped many homeowners like you keep your family in the same home, your kids in the same school, and your friends nearby. Call us or complete our contact form to schedule a consultation. We can stop any foreclosure actions immediately.