A Structured Path Toward Financial Stability
When dealing with significant debt, Chapter 13 bankruptcy offers an organized way to repay what you owe while keeping your property. At Hurst Law Firm, P.A., we work with individuals and families in Memphis, TN who want to avoid foreclosure, prevent repossession, and regain control of their financial situation. Chapter 13 allows for a repayment plan instead of liquidation, making it a powerful tool for long-term relief.
How Chapter 13 Works
Chapter 13 is often referred to as a “wage earner’s plan” because it’s designed for individuals with steady income. Instead of discharging debts right away, it creates a manageable three- to five-year payment schedule based on what you can afford. During this period, creditors are required to stick to the terms of the plan and cannot pursue separate collection efforts.
Unlike Chapter 7, Chapter 13 allows you to catch up on missed mortgage payments, stop car repossession, and potentially pay back only a portion of your unsecured debts. At the end of the plan, remaining eligible debts may be discharged.
Common Reasons People File
For many in Memphis, the threat of foreclosure is a key motivator. Filing for Chapter 13 can pause foreclosure proceedings and allow time to bring the mortgage current. Others file to consolidate debts, manage IRS obligations, or stop wage garnishments without giving up their assets.
This type of bankruptcy works well for those who may not qualify for Chapter 7 or who have significant equity in a home or vehicle they want to retain.
Why Personalized Legal Support Matters
Every Chapter 13 case requires a unique repayment plan based on income, expenses, and the nature of the debts involved. At Hurst Law Firm, P.A., we build customized plans that reflect your priorities and financial capabilities.
If you’re facing mounting bills but still have regular income, Chapter 13 could give you the time and structure needed to move forward. It’s not about walking away—it’s about making a commitment to catch up without falling further behind. If you’re ready to find out how this process fits your life, we’re here to help you get started.
