It is possible to be overwhelmed by debts, even if you have significant income. However, by filing chapter 13 bankruptcy help, individuals with regular and substantial income can repay part or all of their debts. The section allows them to come up with a repayment plan to make installments within a frame time of about three to five years.

So, if you plan to get out of the debt without losing your assets, chapter 13 bankruptcy is the way to go because it has a provision in place for asset protection. However, to navigate the process successfully, you will need to employ a legal attorney such as ch 13 bankruptcy lawyer in Knoxville that understands how the system of this chapter works. Legal wisdom of an attorney in this kind of situation helps resolving any financial problems an individual is facing. Going through this process can be a real hassle and reduces the chances of achieving a successful petition.

When Can You File Chapter 13 Bankruptcy?

Chapter 13 bankruptcy filing is in place to help debtors that are not up to date with their debt payments. It may be mortgages, student loans, taxes, and other non-dischargeable debt. These kinds of debts cannot be forgiven using chapter 7 bankruptcy filing, but through chapter 13, you have room to work on a new repayment plan with your creditors.

Another reason you may find yourself filing for chapter 13 bankruptcy is when your  home or car loan payment is due. You may need to go through with chapter 13 bankruptcy when you have liens on your property or assets with a value greater than the possessions and assets whose worth is more than the exemption.

What Does Chapter 13 Bankruptcy Filing Cover?

Chapter 13 bankruptcy filing gives individuals with debt time to reorganize their finances and come up with a repayment plan that is convenient for them. Here are things that chapter 13 bankruptcy covers:

  • Creditor harassment
  • Foreclosure
  • Medical expenses
  • Creditor harassment 
  • Wage garnishment

Qualifications For Chapter 13 Bankruptcy Filing

Chapter 13 bankruptcy filing is not for everyone. There are several qualifications you need to meet for you to be eligible for chapter 13 filing. You have to meet the below requirements for you to qualify for this kind of filing: 

  • You must not be a commodity broker or stockbroker.
  • A business, whether owned by one person or several individuals, the owner is not eligible for chapter 13 filing.
  • You must be up to date with your tax filing to file for chapter 13 bankruptcy.
  • You have to pass the means test that measures the payback debts on assets, expenses, and income to file for a chapter 13 bankruptcy filing. However, if your income is too low, you may not qualify for chapter 13 bankruptcy filing, but instead, you may consider filing for chapter 7.

The Process Of Filing For Chapter 13 Bankruptcy

Once you are sure that you meet the requirements for filing for a chapter 13 bankruptcy, you can proceed with the process. The first thing will be to submit your repayment plan. Here, you have to explain how you plan to settle your debt with your creditors. In this situation, the person who handles the payment transaction will be a trustee. 

Note that the ability to repay is what will determine the amount of money you will have to pay. Depending on your financial capability, you may or may not be obligated to pay your debt in full. 

If you decide to convert the process into chapter 7 bankruptcy filing, you will have to dismiss the bankruptcy process since you will not require any protection. If you are successful with your chapter 13 filing, creditors will have no right to do the following:

  • Harass or contact you
  • Repossess your car
  • File a civil lawsuit against you with the intention of a money judgment
  • Foreclose your home
  • Garnish your wages
  • Access money from your bank account

Generally, the filing of chapter 13 is a long and tedious process. It can take you about three to five years for you to be able to discharge your debt. Chapter 13 bankruptcy can stay on your credit history record for more than ten years. However, as time goes by, the negative impacts of your chapter 13 filing will decrease.


Though bankruptcy is prevalent, it is generally difficult to understand the complexities of the law that applies to it. It is the reason why hiring an experienced attorney to help you with the chapter 13 bankruptcy filing process is highly recommended. Working with an attorney is the only way you can get out of your debt situation successfully.