If you are facing a foreclosure or serious debt in Western Tennessee or Northern Mississippi, I’m here to help.
The Bankruptcy code provides incredible protection to debtors. It’s important that they find an attorney who can guide them through the often difficult process. Most people who need protection do so through Chapter 7 or Chapter 13.
Chapter 7 is what we all thought bankruptcy was when we were young. It’s often called “straight’ bankruptcy. What it does is eliminate the vast majority of debt that a person might hold. All “unsecured” debt, that is debt where someone can’t come and take something from you if you don’t pay (i.e. credit cards, medical bills, etc), is eliminated. If you are behind on a house or a car, you can give them up and not worry about being liable for any future debt. At the same time, if you are current on your house note or car note, it’s possible to reach an agreement with your lenders and keep them after your bankruptcy.
Chapter 7 is only available to certain people. Bankruptcy lawyers are required to do what’s called a “means test” to determine if someone is eligible for Chapter 7. It is a formula that balances your income and expenses and helps the court determine if you have enough money to pay back some of your creditors. Call me today and we can discuss your financial situation and if Chapter 7 is right for you.
If you are not eligible for Chapter 7 or if you are behind on a house note or car note and you want to keep them, Chapter 13 might be your best option.
Chapter 13 is a monthly payment plan which most of the time lasts 5 years (60 payments). All “secured debt” is paid at 100%. Secured debt is debt where your creditor has the right to come and take some property from you if you don’t pay. Things like your house, car, rental furniture etc. A few other things must be paid at 100% as well (student loans and child support are the main ones). All unsecured debt is treated in a much more lenient way. In Mississippi, depending on your particular situation, you can pay as little as ZERO percent of all unsecured debt. In Tennessee that number is as low as 10%.
Over 60 months you will pay the secured debt and whatever is allowed of the unsecured plus trustee fees and attorney fees. I can give you a pretty good guess as to what your monthly payment will be. In any event, after your meeting of creditors, which occurs within 60 days of filing, you will know the exact number.
The important part of Chapter 13 is that you can stop a foreclosure of your home for little money up front. A filing fee of $320 is required but in both Tennessee and Mississippi that fee can be delayed until up to six months after filing. The majority of my fees are paid as part of the plan.