Chapter 13 vs Chapter 7 bankruptcy attorney in Knoxville, TN
April 8, 2021at7:00 AM
If your debt feels insurmountable, there are ways to clean the slate. The most reliable solution is hiring a Chapter 13 or Chapter 7 bankruptcy attorney in Knoxville, TN.
At DZ Law, our track record speaks for itself. We’re in a league of our own. Unlike other firms, we embrace technology to streamline processes. This enables us to give each client the time and attention they deserve.
Here’s when you need a Chapter 7 or Chapter 13 bankruptcy lawyer in Knoxville, TN.
What is Chapter 7 bankruptcy?
Often known as liquidation, Chapter 7 bankruptcy involves selling property to pay your debts. It’s the most common choice for those who don’t own a home or have limited income. However, it’s also a viable option for business entities.
To determine if you qualify, you have to take a Chapter 7 means test. Your income must be low enough for eligibility. Overall, it takes 3 to 6 months to receive a discharge.
However, this doesn’t mean you’ll have to concede all property. A good Chapter 7 bankruptcy attorney in Knoxville, TN will ensure you retain as much property as possible. That’s why it’s crucial to use firms like DZ Law.
What is Chapter 13 bankruptcy?
Chapter 13 bankruptcy is commonly referred to as a wage earner’s plan. It enables those with above-average income to develop a plan to repay debts. Oftentimes, debtors draw up a repayment plan. Repayment plans are completed in installments over 3 to 5 years.
When do you need Chapter 7 or Chapter 13 bankruptcy?
Firstly, you can only file for bankruptcy once every 8 years. Therefore, if you’ve filed for bankruptcy within the last 8 years, these are likely not feasible solutions. However, even if you think you’re ineligible, consulting with a Chapter 13 or 7 bankruptcy lawyer is still advisable.
Chapter 7 bankruptcy
Before filing, you need property or assets a creditor could take. You also need a lot of debt. This can be credit card, medical, or personal loan debt. Your family income can’t exceed the state median for the same family size, and your personal monthly income should be less than $7,475 in the state of Tennessee.
However, your best bet is to consult with a qualified Chapter 7 bankruptcy attorney in Knoxville, TN to determine if you qualify.
Chapter 13 bankruptcy
Chapter 13 bankruptcy is for those who have sizable debt that can’t get discharged by filing for Chapter 7 bankruptcy. This kind of debt includes income tax, student loans, and domestic support obligations.
Chapter 13 bankruptcy is for higher-income filers. It’s also far better for those who don’t want to forfeit considerable equity in a house or property. Lastly, Chapter 13 bankruptcy is ideal for those facing foreclosure or repossession.
What are the benefits?
To fully understand the benefits both kinds of bankruptcy provide, it’s necessary to consult with a Chapter 13 or Chapter 7 bankruptcy attorney in Knoxville, TN.
However, here’s an overview:
The benefits of Chapter 7 bankruptcy
A quick solution (3 to 6 months)
No repayment plan
Many debts are discharged
Maximum property protection
The benefits of Chapter 13 bankruptcy
Can save your home
Helps with second mortgages
Helps with tax debts
Helps with car payments
Helps with domestic support payments
Contact us now for a consultation!
If you need a Chapter 13 or Chapter 7 bankruptcy attorney in Knoxville, TN, DZ Law should be your only option. Our communication, transparency, and commitment to customers are unparalleled. Plus, by integrating technology, we’re able to allocate unrivaled time and attention to each client.
Contact us now for a consultation! It’s never too late for a fresh start.