Bankrupt Memphians Need to Know
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Bankruptcy attorneys in Memphis, TN have a unique experience among bankruptcy lawyers dealing with a population that on a percentile basis files more than any other in the nation. Memphis can also call itself special in terms of bankruptcy with two thirds of the filings being the more difficult chapter thirteens.Chapter 7 dominates the percent of filing nationally with most districts only having about a quarter of filings being thirteens
A Chapter 13 bankruptcy allows one to repay part of all of the debt owed. The most important feature is that if one is behind on a house or car for example, a Chapter 13 bankruptcy will allow to make up the amount you are behind and keep the property. The plans last five years and require that you pay excess income over internal revenue service guidelines into the plan
Figures vary,but it is commonly accepted that approximately one-third at best of Chapter 13 plans will end up being completed. So why are Chapter 13 plans so frequently used in Memphis? Some try to explain the characteristic with the Christian ethics of repayment. A less charitable explanation would be that lawyers use Chapter 13 for the higher associated fees chargeable over the life of the plan. This is opposed to a Chapter 7 plan where the lawyer's fee would technically be discharged as a debt if not paid before filing..
Tennessee's four thousand wild card exemption could also be to blame. In some cases it could be that a lapsed chapter thirteen plan could be due to positive causes. It could be attributable to an increase in income or positive change in circumstance causing the debtor to be able to repay the debts and no longer need bankruptcy court protection.
Chapter thirteen includes a fairly onerous continuing documentation requirement . The one clear instance where a Chapter 13 is called for is where you are behind on property with substantial equity and you have a now steady monthly income which will allow you to cure the deficiency.
A Chapter 7 is the traditional bankruptcy. You don't keep stuff in excess of the homestead amount, but you get the immediate relief from debt without the necessity for payments. You can usually also keep a home or vehicle in which you are current with the payments.
I strongly recommend you to consider filing for a Chapter 7 if at all possible. Remember much of the consternation with the much talked about bankruptcy reforms was the means test, the central downside was that it required those who have means to file Chapter 13.
Article Source: Articlelogy.com
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