Memphian Bankruptcy Essentials
Being a Memphis bankruptcy lawyer has an unique character in that Memphis has the highest bankruptcy filing rate 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 generally last for five years and involve the debtor paying all of their disposable income either reasonable expense figures or IRS standard expenses to the US Trustee who will dispense the money per the Chapter 13 plan for between three to five years.
Debtors using chapter 13’s can have a success rate under 1/3rd. It is easy to ask oneself why Memphians use Chapter 13 so frequently, Some try to explain the characteristic with the Christian ethics of repayment. Less generous explanation are that being a less economically gifted area, Chapter 13 offers a way for lawyers to get paid without having their clients to come up with ready cash. Chapter seven fees must usually be collected upfront or they might be discharged.
Tennessee’s four thousand wild card exemption could also be to blame. It is also not clear that failure to complete Chapter 13 plans is always a bad thing. You never know when a big inheritance might have hit.
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.
David Sandy is a Memphis Bankruptcy Lawyer who likes to write about Memphis bankruptcy attorneys and formerly subscribed to an Attorney Matching Service.
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