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What to Expect When Filing Chapter 13 Bankruptcy in Nashville

 

What to Expect When Filing Chapter 13 Bankruptcy

By Cynthia Podis
Nashville Bankruptcy Attorney

 

Most of our clients file Chapter 13 bankruptcy when they are in debt and cannot pay their monthly expenses because they have too many credit card payment, medical bills, or payday loans.  Most of the time this happens when they lose a job, are out sick without pay or get a divorce.

We start all clients with an easy process, a free, private appointment to talk about what it going on in your life?  We ask a lot of questions at this appointment about how much you make, what assets you own (paid for cars, jewelry, money in the bank, ira/401k, inheritances, lawsuits where you are the plaintiff) what bills are you paying, house payment, car payment, credit cards, student loans, pay day loans, etc.,.  We are making sure that Chapter 13 Bankruptcy is the right choice for you. A lot of clients file Chapter 13 Bankruptcy to keep the house or car when they have fallen behind in the payments.  We also answer your questions about bankruptcy.

We send you home with some information about bankruptcy and a small amount information to gather. This information is required by the Bankruptcy Code. We must provide some items to the Bankruptcy Trustee, like tax returns, pay stubs and bank statements.

Once you are comfortable that Chapter 13 bankruptcy is the best way to get out of debt, we schedule a second appointment.  This appointment usually lasts about 2 hours.  The first hour is spent getting your pre-bankruptcy certificate and copying information we must supply to the Bankruptcy Trustee on your behalf.

Then you will meet with an attorney or paralegal to go through the questions in the bankruptcy petition.  The bankruptcy petition is the written forms we must file with the Bankruptcy Court to get your case filed and obtain a case number.  You will sign your petition. An attorney will review what happens next with you and go over questions to ensure the bankruptcy information is correct.

Attorney Mark Podis, then reviews all of the information in your file to ensure it accurately reflects the information you provided.  If there are questions or problems, we may call you in for another chat to make sure this is the best decision for you.  If all the information looks true, accurate and complete, at our office, Attorney Mark Podis files it with the Bankruptcy Court Clerk.  Once the bankruptcy case is filed, the Automatic Stay is in effect.  Mr. Podis will email when your case is filed. Most Courts require the creditors get notice before this stay is effective.  So we Fax, E-mail or Call creditors who are trying to sell or repossess items, or garnish wages or sue you.  We mail you a copy of your petition and ask you to review it as soon as possible and let us know of any changes, errors or omissions.   The petition is signed under oath so it is important it is completely true.  It is mandatory the court receive your first payment on your Chapter 13 plan immediately after filing.  If you wait to pay, the court can dismiss your case or place it on a probation status (this means if you miss a payment, they will dismiss your case without a hearing).  The Chapter 13 Bankruptcy Plan usually lasts 60 months.  If you are paying 100% to your unsecured creditors, it can be a shorter length of time. After your petition is filed and you have attended your court date/Meeting of Creditors, you will need to take the Financial Management Class.  The Chapter 13 Trustee’s office offers a free class.  We generally recommend that one because it is necessary if we make any changes in your case in the future.

The Court sets up dates for things to happen in your case.  You get a copy of your court dates from the court and from our office.  The first Court date is usually the Meeting of Creditors (if this is not your first case within a year, you will have extra court dates).  This is where the Chapter 13 Trustee reviews your information and asks questions to ensure the accuracy of the petition.  Your creditors have an opportunity to show up and ask questions (this is often handled by the attorney).  For example, a car creditor may send an attorney or paralegal to check to make sure you have car insurance or look for better treatment under the Chapter 13 plan of repayment.

At the Meeting of Creditors, the Trustee calls the roll call of all cases to be held at that time.  He or she then gives a speech about how important it is to list all of your debts and assets.  They then ask you to review your petition again (please bring it with you to court).  Then they tell you to go tell your lawyer of any errors or omissions.  We ask our client to be about 45 minutes early to the Meeting of Creditors.  There is a form to fill out and turn in to the Trustee.  We also want to walk you through the Meeting of Creditors procedures.

When it is your turn to testify and answer questions, we are called up to the table.  The Trustee swears you in and checks your Government issued photo identification (drivers’ license or passport or military id) and Social Security Card.  The Trustee will ask you a few questions, such as, are you still employed at the same place as when you filed?  Can you sue anyone?  Are your bankruptcy schedules true, accurate and complete?  Are there any changes?  Then the Trustee will ask your lawyer to present the Chapter 13 plan of repayment and they will ask questions like how much is the first mortgage? How far behind is it? How much is the car payment? What is the interest rate? Monthly payment? How much is the unsecured debt? How will the attorney’s fee be paid?  They will total the payment and see if it matches the proposed plan payment.  Most of the time it is the same or super close (a dollar or two off).   The Trustee asks if this is a plan payment you can make?   They then have you wait for everyone to testify. The Trustee calls the roll call again and shows a video and then you can leave at the end of the video.

Your creditors must file paperwork with the Bankruptcy Court Clerk to be paid.  This is called a Proof of Claim.  The court sets a deadline for them to file this paperwork (usually about 60 days after filing/moc).  If it is a secured claim, they must attach paperwork proving the lien on the house, car or other items.  If a creditor does not file a claim, they do not get paid.  We do our best to encourage creditors to file claims by reminding them when the bar date is approaching.

Once the Proof of Claim deadline has passed, the Bankruptcy Trustee sends you a copy.  We also send you a copy of it and ask you to review it for accuracy.

After the Proof of Claim deadline passes, there is not much to do in your case unless you have a change in circumstance, such as a change in job, change of address or phone number or have an accident or other claim that arises where you may need to file a lawsuit against someone, inherit money or life insurance proceeds, settle or win a lawsuit that was filed before or after your bankruptcy was filed, win the lottery (it happens!) or get some kind of wind fall of money (a gift).  Sometimes you wreck your car or lose your job or get a divorce during bankruptcy.   If one of these things happens, contact your lawyer.  We do not always have good options in response to these problems, but we will give you the correct options.

At the end of your Chapter 13 Bankruptcy case, you will need to complete and sign a Domestic Obligation Cerficate, return it to your lawyer so it can be filed with the Bankruptcy Court.  Then a 522q Motion can be filed and after 22 to 30 days, the case will be discharged if no objections to this motion or the Domestic Obligation Certificate is filed.

This is a rough idea of what happens.  There are motions that can be filed in your case if you fall behind in your payments, such as a Motion to Dismiss for Failure to Fund the Case or Failure to Cooperate with the Trustee/Court.  Creditors can file a Motion for Relief from the Automatic Stay provisions if they are not being paid during the case.

If you are interested in filing a Chapter 13 Bankruptcy in Middle Tennessee, we would be happy to discuss your options with you!

 

By Cynthia Podis, Nashville Bankruptcy Attorney and Author

 

For more information visit www.BankruptcyNashville.com or call 615-399-3800 and schedule a free appointment with us!

Podis and Podis
1161 Murfreesboro Pike Suite 300,
Nashville TN 37217
6 Locations to better help you!
Nashville, Cookeville, Columbia, Clarksville, Hendersonville and Murfreesboro 
We are a debt relief agency.

We help people file for bankruptcy under the Bankruptcy Code.

This article is not a rendering of legal advice.

 

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What to Expect at Your Initial Consultation

At our office, your initial consultation is free! Together, we look at your circumstances and discuss the options that will help put you on the road to recovery. When you arrive at our office, we ask that you bring with you: 1) A photo id, 2) A social security card, and 3) A list of the debts you owe. This allows us to best assist you in determining which option is the best for you!

In meeting with a member of our knowledgeable staff, we will assist you in determining whether bankruptcy is the right option and if it is, whether a Chapter 7 or Chapter 13 will best assist you! Make an appointment today to determine if filing is the best option for you!

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Can I file Bankruptcy?

By Cynthia Podis

Bankruptcy Lawyer

The answer is probably!  There are several types of Bankruptcy.  At Podis and Podis we deal with Chapter 7 and Chapter 13 Bankruptcy for individuals and married couples.  Which bankruptcy to choose?  Well, that is as individual as you and what you are looking to accomplish.

Chapter 7 is for anyone who has dischargeable debt and assets that are not at risk in a bankruptcy.  We can protect up to $10,000 per individual and $20,000 per couple of assets such as cash, car value, household goods like tax refund money, antiques, jewelry and electronics.  The amount of equity in your home is protected up to a point.  This depends on your age and if you have legal custody of minor children in the home.   Your eligibility for Chapter 7 Bankruptcy also depends on your household income.  The level begins with an individual in Tennessee $40421; with one dependent $50,679 and with two dependents $57,528.  It is a sliding scale ratio of income to family size.  If you are trying to get rid of debt, and have little or no non-dischargeable debt, then Chapter 7 may be for you!

Chapter 13 Bankruptcy repayment plans will help you keep your house, car or other asset.  You must have a regular source of income to file a Chapter 13 Bankruptcy.  This can be from a job, social security or from self-employment.  Chapter 13 is also for those who do not qualify for Chapter 7, due to income, or assets or most of your debt is not dischargeable in Chapter 7 – such as student loans, alimony and child support.  Chapter 13 repayment will give you a chance to repay some or all of your debts over a period of up to 60 months.  It stops creditors from calling and suing you when they are listed in the repayment plan.  If you stop paying, then your case will be dismissed or converted to Chapter 7 Bankruptcy so the Trustee can sell the asset and repay your creditors.  You still have exemptions available in Chapter 13 bankruptcy, but you may forgo a portion of an inheritance or lawsuit you have filed to repay your creditors.

For more information visit www.PodisBankruptcy.com or call 615-399-3800 and schedule a free appointment with us!

Podis and Podis – 4 Middle Tennessee Locations to serve you

1161 Murfreesboro Pike Suite 300, Nashville TN 37217

610 N. Garden Street, Suite B-300 Columbia TN 38401

345 S. Jefferson Avenue, Suite 207, Cookeville TN 38501

751 Madison Street, Suite A Clarksville TN 37040

 

We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code.

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If you Filed Bankruptcy Before, Can you File Bankruptcy Again?

By Cynthia Podis, Bankruptcy Lawyer

The answer is probably!  There are several types of Bankruptcy.  At Podis and Podis, our bankruptcy lawyers deal with Chapter 7 Bankruptcy and Chapter 13 Bankruptcy for individuals and married couples.  Which bankruptcy to choose?  Well, that is an individual decision and depends on what debts you are trying to wipe out and what items you are trying to keep or repay.

Chapter 7 is for anyone who has dischargeable debt and assets that are not at risk in a bankruptcy.  You can protect your personal items up to $10,000 per person filing bankruptcy and $20,000 per couple. Personal property means items like cash, cars with no loan or with value over what is owed, household goods like furniture, tv, computer, tax refund money, antiques, jewelry and electronics.  The amount of equity in your home is protected up to a point.  This depends on your age and if you have children in the home.   Filing for Chapter 7 Bankruptcy is limited by household income and family size.  The level begins with an individual in Tennessee $43270; with one dependent $53887 and with two dependents $56042.  It is a sliding scale of income to family size.  If you are trying to get rid of debt, and have little or no non-dischargeable debt, then Chapter 7 can help!

Chapter 13 Bankruptcy repayment plans are designed to help you keep your house, car or inheritance.  You need regular income to repay in a Chapter 13 Bankruptcy.  Income can be a job, social security or self-employment.  Chapter 13 helps when you do not qualify for Chapter 7, due to income, or assets or you are behind on payments for a house or car and want to keep them.  Chapter 13 repayment will give you a chance to repay some or all of your debts over a period of up to 60 months.  It stops creditors from calling and suing you when they are listed in the repayment plan.  If you stop paying, then your case will be dismissed or converted to Chapter 7 Bankruptcy.  You still have the protection of exemption in Chapter 13 bankruptcy.  You can keep your secured things like a house or car or boat and repay the debts over time to catch up what you are behind.

Mark Podis and Cindy Podis
Bankruptcy Attorneys in Nashville TN and Cookeville TN

For more information visit www.BankruptcyNashville.com or call 615-399-3800 or 931-303-0740 or toll free 1-888-372-8780 and schedule a free appointment with us! 

 Podis and Podis   1161 Murfreesboro Pike Suite 300  Nashville TN 37217

Podis and Podis 345 S. Jefferson Avenue Suite 207  Cookeville TN 38501 931-303-0740

We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code

This blog post is for informational purposes and does not constitute legal advice.

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Can I borrow my way out of debt? Should I file bankruptcy?

By Cynthia Podis

Nashville Bankruptcy Lawyer

Do you find your self out of money at the end of every month and still have bills you cannot pay?  A Chapter 7 Bankruptcy can help wipe out credit cards, medical bills and pay day loans.  A Chapter 13 Bankruptcy works as a legal debt consolidation giving you a repayment plan of up to 60 months, paying 0 to 100% on your debt.  Your creditors cannot sue you while they are being paid in  the bankruptcy.  Chapter 13 takes into consideration your income, household size and regular monthly expenses to determine your repayment amounts.

Generally, you pay a small payment up front and the attorney fee is financed through the Chapter 13 plan.  Chapter 13 helps you take control of your budget.  You can keep your house, car and other assets in Chapter 13.  The Automatic Stay of the Bankruptcy Code protects you while you repay your creditors.

Chapter 7 Bankruptcy allows you to erase debts and keep some assets (up to $10,000 in personal property).  The amount of exemption is determined by state law in most cases and by Federal Code in others.  A knowledgeable attorney will always ask how long you have lived in the state to determine the protection available to you.  You can keep a car or house if they are not worth a lot more than is owed on them.

While Bankruptcy rules and laws are complex, we make it easy to file! At Podis and Podis, we pull your credit report, tax transcripts, and prepare the paperwork to be filed with the court. We walk you through all of the questions to expect from the Trustee.  We work on your behalf to negotiate reaffirmation agreements, void liens and redeem items that are subject to secured loans.  We file dischargeability complaints to determine if debts are eligible to be wiped out in bankruptcy.  We have over 50 years of combined legal experience we use to help our clients.  We do not just file your case!  We follow up with the work necessary to get you the maximum relief available under the Bankruptcy Code.

For More information, call us and set an appointment to see how bankruptcy can help you!

Podis and Podis 

615-399-3800

1161 Murfreesboro Pike Suite 300

Nashville TN 37217

We are a debt relief agency.  We help people file for Bankruptcy Under the Bankruptcy Code.-

Disclaimer: This article is not legal advice.  To obtain legal advice, please call and set an appointment to speak with us.

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Can I Keep My Income Tax Refund in a Chapter 7 Bankruptcy?

By Cynthia Podis

Bankruptcy Attorney

Clients in my office ask this question every day!  The answer is it depends on the amount of your refund and other assets.  The Bankruptcy Code allows you to keep some personal assets in a Chapter 7 by referring to your state law or in some special cases, the Federal Exemptions.  The Tennessee Code Annotated, as referred to by 11 USC §522 under the Bankruptcy Code, allows you to keep up to $10,000 in personal property including: furniture, electronics, cars (equity or paid in full), and cash (in the bank or income tax refunds).  You must be a Tennessee resident to claim the Tennessee exemptions.  This is a complex area of the Bankruptcy Code.  I encourage you to hire an experienced Bankruptcy Attorney to guide you through the protection of your assets!  It is sad when I see bankruptcy filers lose assets that may have been protected with competent help from their attorney.

To determine whether you can use the Tennessee Exemptions, Federal Exemptions or your prior state of residence, your lawyer will ask you specific questions concerning where you have lived over the past 3 years.  The Federal Exemption allows you to use “…any property, not to exceed in value $800 plus up to $7,500 of any unused amount of the exemption provided under paragraph (1) of this subsection.”https://www.law.cornell.edu/uscode/text/11/522  You must not be a Tennessee resident to use the Federal Exemptions.

It is important to discuss your prior residences and the values of your personal items to determine if you can keep your tax refund.  It is important to hold on to your Income Tax Refund to protect it.  The protection of Exemptions apply only when you have possession of the money.  The Trustee in your Chapter 7 Bankruptcy can take the money back from individuals or creditors if you spend it before your Trustee waives any interest in it.  They will generally allow you to use the money to file your bankruptcy, pay the filing fee to the Bankruptcy Court Clerk, and to pay basic living expenses like rent, electric and water bills.  Any extraneous expenses like paying back a family member or other insider can be subject to scrutiny by the Chapter 7 Trustee.

When a Chapter 7 Bankruptcy will not protect all your assets, you may want to consider a Chapter 13 Bankruptcy.  Chapter 13 is a repayment plan that protects your assets that may not be completely protected in Chapter 7 by paying unsecured creditors over time the amount of the unprotected asset (this is called the Best Interest of the Creditors Test).

 

For more information visit www.BankruptcyNashville.com or call 615-399-3800 and schedule a free appointment with us!

Podis and Podis, 1161 Murfreesboro Pike Suite 300, Nashville TN 37217

This information is not legal advice, it is an advertisement for legal services.

We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code

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Credit Card Bankruptcy

By Cynthia Podis

Nashville Bankruptcy Lawyer

If you answer yes to one or more of the following questions, you may benefit from a Bankruptcy:

1) I am falling behind each month on credit card bills and other bills.

2) I am using one credit card to pay another.

3) I am living paycheck to paycheck. If I miss work, I will not be able to pay my bills.

4) I am living on credit cards. If the credit card company cuts off my cards, I will not be able to make it through the month.

5) I cannot pay my balance at the end of the month.

6) Credit Card companies are calling and calling looking for their payment.

7) I pay the minimum balance on my credit cards every month and the balance never goes down.

 8) I pay my credit cards late each month.

A Chapter 7 bankruptcy can wipe out credit card debt. you should stop charging on cards at least 70 to 90 days before filing for bankruptcy. Charges made within 70 days of filing bankruptcy may not be discharged/wiped out.

A Chapter 13 bankruptcy can give you relief from unrelenting debt. Chapter 13 gives you the chance to get back on track while making repayment of 0& to 100% of the debt over a period of up to 60 months.

Call us for a free appointment to discuss your unique situation. We can walk you through your options so you can decide if bankruptcy will help you.

 

For more information visit www.BankruptcyNashville.com or call 615-399-3800 and schedule a free appointment with us!

Podis and Podis, 1161 Murfreesboro Pike, Ste 300, Nashville, TN 37217

 

Nothing in this blog constitutes legal advice.

We are a debt relief agency, We help people file for bankruptcy under the Bankruptcy Code.

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The Difference between Chapter 7 and Chapter 13 Bankruptcy

By Cynthia Podis

Nashville Bankruptcy Lawyer

Chapter 13 Bankruptcy is a repayment plan that lasts between 3 to 5 years versus a Chapter 7 Bankruptcy which wipes out debts without repayment. In Chapter 13 and Chapter 7 bankruptcy, you must list all of your debts and assets in the Bankruptcy Petition (forms filed with the court). Both Chapter 13 and Chapter 7 bankruptcy cases have a Meeting of Creditors where a Bankruptcy trustee reviews the forms and asks questions concerning what you intend to do with certain debts and assets, like cars, houses and other secured items.

You can keep a house, car, or other secured items in a Chapter 7 bankruptcy if you do not have equity over the amount allowed under the Bankruptcy exemptions. In a Chapter 13 bankruptcy, you can keep a house, car, or other secured item, regardless of the value as long as your plan meets the best interest of the creditors test and you can afford the repayment plan.

Chapter 7 filers must meet certain criteria in order to qualify for a discharge in their case. Most importantly, you must not have the ability to repay the debts listed and have a household income less than that in the Means Test (found at https://www.justice.gov/ust/means-testing/20161101 ). In Tennessee for a household of 1, income should be less than $42,731; a household of 2 should be less than $53,216; income for a household of 3 should be less than $59,294, etc. If you are over the Means after reasonable deductions are taken, you will not qualify for Chapter 7 relief.

You can file a Chapter 13 bankruptcy even if your income is less than the Means Testing numbers, so long as you can afford the repayment plan which would be between 0% and 100% depending on your financial circumstances.

Chapter 7 has no debt limit, no matter how much you owe, you are not stopped from filing if you meet the other requirements under the Bankruptcy Code.

Chapter 13 limits unsecured debt to $394,725 and secured debt (house, cars, furniture loans) to $1,184,200. If you owe more than the debt limit in either secured or unsecured debt, you cannot get relief under a Chapter 13.

Most clients file a Chapter 13 bankruptcy to keep items they cannot protect under a Chapter 7 bankruptcy or to catch up on house or car payments. Clients file Chapter 13 bankruptcy to allow them to get out from under the stress of overwhelming bills and set up a repayment plan that allows them to enjoy their lives while keeping their assets.

 

For more information, visit www.BankruptcyNashville.com or call 615-399-3800 and schedule a free appointment with us!

Podis and Podis, 1161 Murfreesboro Pike Suite 300, Nashville, TN 37217

We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code.

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How Does Chapter 13 Bankruptcy Work?

How does Chapter 13 Bankruptcy Work?

By Cynthia Podis, Nashville Bankruptcy Lawyer

Chapter 13 Bankruptcy is a repayment plan that is facilitated by the Bankruptcy Court. You must list all of your debts and assets in the Bankruptcy Petition (forms that are  filed with the court). Once the Bankruptcy Petition is prepared and filed with the Bankruptcy Court, your creditors are notified by the Court of the filing of the bankruptcy and the date and time of the Meeting of Creditors. You begin making payments to the Chapter 13 Trustee to fund your Chapter 13 Plan. If you have a regular paycheck, the Chapter 13 plan payment is payroll deducted. If you receive Social Security Income or are self-­employed, you can use a direct pay service from your checking account to make your payment.

The Meeting of Creditors is your court date. This is where your bankruptcy lawyer proposes the Chapter 13 Plan of repayment to the Chapter 13 Trustee for approval of the court. Your creditors have the opportunity to show up and ask questions. Mostly car creditors or other secured lenders send a lawyer or representative to ask for proof of insurance on their collateral or ask for better treatment under the plan of repayment, such as a higher amount of interest, or monthly payment. The Trustee asks you and your bankruptcy lawyer questions about your Chapter 13 Plan.

When your Chapter 13 Plan is approved. You will make the Chapter 13 plan payments through the Chapter 13 Trustee who will then mail payments to your creditors. It is important to list everyone you owe money too in your Chapter 13 plan. You will continue to pay your living expenses, such as rent, electric, gas and water bills directly.

The Chapter 13 Trustee in Nashville offers a Financial Management Class that you schedule on the Trustee’s website at http://www.ch13nsh.com/debtored/ch13class.aspx

During your Chapter 13 plan, you cannot sell assets or finance anything on credit without permission from the Bankruptcy Court. It is important to keep your bankruptcy attorney up to date with your address, phone number and email address. If you change your employment, let your bankruptcy lawyer know so they can update the court with that information.

Chapter 13 Bankruptcy helps you keep a car or house if you are behind on the payments. If you have filed a Chapter 7 Bankruptcy in the last 8 years (or earlier), you may still be eligible for a Chapter 13 bankruptcy. You can file a Chapter 13 Bankruptcy even if you qualify for a Chapter 7 Bankruptcy.

Most clients file Chapter 13 Bankruptcy to keep items they cannot protect under Chapter 7 or to catch up on house or car payments. Clients file Chapter 13 Bankruptcy to allow them to get out from under the stress of overwhelming bills and set up a repayment plan that allows them to enjoy their lives while keeping their assets.

For more information visit www.BankruptcyNashville.com or call 615­399­3800 and schedule a free appointment with us! Podis and Podis, 1161 Murfreesboro Pike Suite 300, Nashville TN 37217

We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code.