Chapter 13 Bankruptcy

Why should I file a Chapter 13 bankruptcy?

A Chapter 13 bankruptcy allows you to pay your debts off over a period of 36 to 60 months, often at a substantially reduced amount. Usually the longer the length of the payment plan, the lower are your periodic payments. A Chapter thirteen bankruptcy can be used to substantially reduce your unsecured debt (i.e. credit cards, medical bills, etc.) by up to 90%. Thus, if you owe $30,000.00 in credit card debt, you may only have to pay back $3,000.00, an average of $50 per month on that amount of debt in a 60 month plan. Come in and let us work up what would be your potential plan payment, absolutely FREE.

Chapter 13 Bankruptcy in Memphis, TN: Comprehensive Guide 

A Chapter 13 bankruptcy allows you to repay your debts over a period of 36 to 60 months, often at a significantly reduced amount. Generally, the longer the payment plan, the lower your monthly payments. Chapter 13 can reduce your unsecured debts—like credit cards and medical bills—by up to 90%. For example, if you owe $30,000 in credit card debt, you may only need to pay back $3,000, which averages about $50 per month over a 60-month plan. Visit us for a free consultation to estimate your potential plan payment.

Why Choose Arthur Ray Law Offices for Chapter 13 Bankruptcy?

• Experience: With over 35 years of bankruptcy practice in Memphis, I have helped thousands of clients achieve financial relief.
• No Upfront Fees: Most Chapter 13 cases are filed with no upfront attorney’s fee; fees are included in your plan payments.
• Convenient Location: Our office is easily accessible for residents of Fayette, Tipton, Lauderdale, and Shelby counties. Parking is just steps from our first-floor entrance.
• Modern Communication: We use the latest technology to keep you updated. Reach us by text, email, or phone for quick responses.
• Client-Focused Service: We are committed to providing excellent representation and support throughout your case.

 

Common Reasons to File Chapter 13 Bankruptcy

1. Behind on Car Payments or Facing Repossession

• Chapter 13 can help you keep your car, even if it has already been repossessed, by allowing you to catch up on missed payments and possibly lower your monthly payment.
• If you surrender your car, the lender may sell it for less than you owe and pursue you for the difference—often leading to lawsuits or wage garnishment. Chapter 13 can prevent this.

2. Behind on Mortgage Payments or Facing Foreclosure

• Falling three months behind typically triggers foreclosure proceedings. Chapter 13 lets you spread out your arrears over the plan period, stopping foreclosure—even if a sale date is set.
• Most mortgage companies require current payments to keep your home in Chapter 7, making Chapter 13 the only option for many homeowners.

3. Behind on Rent

• If you’re facing eviction, Chapter 13 may help you stay in your home by allowing you to pay back overdue rent through your plan. Most landlords will work with you during bankruptcy.

4. Title Loans

• Use Chapter 13 to recover your car from a title loan company, reduce high interest rates, and pay off the loan over up to 60 months.

5. Suspended Driver’s License

• If your license is suspended due to unpaid fines, tickets, or child support, Chapter 13 may enable you to regain your driving privileges quickly.

6. Student Loans

• While student loans are generally not dischargeable, Chapter 13 allows you to pay as little as 10% of the balance during your plan, providing temporary relief from aggressive collection.

7. Child Support Arrears

• Chapter 13 lets you include back child support in your plan, preventing jail time for nonpayment and spreading out your repayment. Some cases allow for only a portion to be paid through the plan.

8. IRS Tax Debt

• If you owe back taxes, Chapter 13 can stop IRS wage garnishments and let you pay your tax debt affordably over time.

9. Lack of Medical Insurance

• If you file Chapter 7 and incur new medical debt, you cannot file again for eight years. Chapter 13 keeps Chapter 7 as an option for future needs.

 

Frequently Asked Questions About Chapter 13 Bankruptcy

Question	Answer
How are attorney’s fees paid?	No upfront fee—fees are included in your monthly plan payments and paid over up to 60 months.
How is the court filing fee paid?	The filing fee is usually included in your plan payments.
Do I have to pay all my debts in full?	No. Most unsecured debts can be reduced by up to 90%.
How does filing affect a co-signer?	Chapter 13 may stop legal action against a co-signer if the debt is paid in full under your plan.
How long does a Chapter 13 plan last?	Plans typically last 3–5 years, depending on your income and circumstances.
Will I lose my retirement?	Chapter 13 helps protect your retirement benefits.
What is a wage earner plan?	Payments are usually deducted from your paycheck, but you may pay directly if preferred.
What is bill consolidation?	Chapter 13 consolidates most debts into a single monthly payment to the trustee, who distributes funds to creditors.

 

What to Expect During Chapter 13

• Filing the Petition: Submit detailed information about your debts, income, expenses, and assets.
• Automatic Stay: Stops most creditor collection actions immediately.
• Creditors’ Meeting: Meet with the trustee and creditors to discuss your finances and plan.
• Confirmation Hearing: The court reviews and approves your repayment plan.
• Plan Implementation: Make monthly payments to the trustee, who pays your creditors.

Conclusion

Choosing between Chapter 7 and Chapter 13 bankruptcy is complex and depends on your unique situation. Understanding the Chapter 13 process helps set realistic expectations for financial recovery. Always consult a qualified bankruptcy attorney before making decisions. We offer a free, no-obligation consultation to prepare a bankruptcy petition tailored to your needs.

For more information about the differences between Chapter 13 Bankruptcy and Chapter 7 Bankruptcy click here.

Serving Lauderdale, Tipton, Fayette, and Shelby County, Tennessee.  For more information or to schedule your free consultation about a Chapter 13 bankruptcy in Memphis, TN call attorney Arthur Ray (901) 475-8200

^*For those who qualify under federal law.