Knoxville Chapter 13 Bankruptcy Attorney Offers Sound Counsel

Skillful Tennessee lawyer prepares effective debt repayment plans

Some people believe that bankruptcy only works for those who have little income and no way to overcome their money problems without a complete cancellation of nonexempt debts. This is not true. Chapter 13 bankruptcy is frequently a desirable middle ground for people who cannot qualify under the Chapter 7 means test, who don’t want to risk losing their home or who are concerned about the effect of a debt discharge on their credit rating. Located in Knoxville, William E. Maddox, Jr. LLC, Attorney at Law has 25 years of experience handling Chapter 13 proceedings for Tennessee residents and can guide you capably if you’re earning income but feel like you’re unable to catch up on your payments.

Potential benefits of filing for bankruptcy under Chapter 13

Millions of Americans understand that steady employment does not necessarily mean that you can overcome serious debt problems. Many individuals and families live paycheck-to-paycheck. This means that a medical crisis, divorce, temporary job loss or high repair bill could cause a financial problem that requires some assistance to solve. In these situations, Chapter 13 bankruptcy can help you:

• Stop collection efforts — Dealing with calls, letters and other efforts from aggressive collectors can be grueling, especially when you’re already facing serious challenges. Upon filing for bankruptcy, the court issues an automatic stay, which prevents creditors from contacting you. They are also prohibited from repossessing property or cutting off service in response to missed payments. This not only gives you breathing room as you look to stabilize your finances, but allows you to assess your debts in an orderly fashion rather than paying off obligations in a haphazard fashion.
• Establish a fair payment schedule — My firm works closely with East Tennessee clients to learn about their income sources and recurring expenses. From there, I develop a comprehensive repayment plan that puts clients in a strong position to repay their obligations over a period lasting from three to five years. By seeking lower interest rates, longer payment terms, the elimination of penalties that have been imposed and the release of some obligations, my firm can prepare a program that eases your burden, acknowledges creditors’ claims and is likely to be approved by the court.
• Maintain ownership of key assets — Though Chapter 7 bankruptcy is a powerful resource for people who seek to discharge nonexempt debts and make a fresh financial start, there are some drawbacks. One aspect of the Chapter 7 process is the liquidation of assets in order to fund partial repayment of the debts that will be eliminated. Certain exceptions exist for specific types of personal property and the state’s homestead exemption allows filers to retain a small amount of home equity, but you might be forced to give up your home and car should you seek Chapter 7 protection. On the other hand, Chapter 13 lets debtors complete the bankruptcy process and still hold on to the assets that mean the most to them.

Don’t force yourself and your family to live with the daily pressure of oppressive debt. Chapter 13 bankruptcy is a legal process designed for people like you who can benefit from a personalized repayment plan to re-establish your financial well-being. In your first meeting, I can examine your circumstances and demonstrate what your program might look like.

Contact a thorough Knoxville Chapter 13 bankruptcy lawyer for a free consultation

William E. Maddox, Jr. LLC, Attorney at Law provides comprehensive guidance to Tennessee clients regarding Chapter 13 bankruptcy repayment plans. You can schedule a free consultation by calling 865-293-4953 or contacting me online. My office is in Knoxville.