Memphis holds the distinction of the Chapter 13 capital of the nation. We like to pay on our debts. Chapter 13 involves making a payment plan of 36-60 months of one’s disposable income to your creditors. Certain secured debts are payed first such as house and car notes. If you are behind on your house or car you can make up the arrearage over the life of the plan. Fill out the evaluation form to get an informed evaluation on if Chapter 13 might be an option, every case is different and personalized information leads to the best consults.
Chapter 13 has a very high failure rate. This might be due to a large number of plans being started in order to take advantage of the low attorneys fees to start. Chapter 13’s can finance the attorneys fees over the life of the plan, but a Chapter 7 can’t finance any fees at all except for a co-signer since a chapter 7 would discharge the fee! The number of failures can be attributed somewhat attempts to gains a little extra time on a house or car. Debtors with steady employment and a payroll deduction tend to fair much better in a Chapter 13 plan.
A chapter 13 plan involves a meeting of creditors like a chapter 7 plan and also includes a confirmation hearing that you must attend. These occur about three and five weeks or more after filing a Memphis Chapter 13 bankruptcy.