Lefkovitz & Lefkovitz
Nashville Office 615-686-2279 Cookeville Office 931-400-2218
Serving all of Middle Tennessee's Bankruptcy Needs

Man cannot use parents' funds in Chapter 13 bankruptcy

Incarcerated people in Tennessee may be unable to file for Chapter 13 bankruptcy if they cannot demonstrate that they have enough income to make payments on their own. Chapter 13 allows people who file for bankruptcy to keep some property, but they must arrange to make payments over three to five years.

In a recent case, a man in Illinois who was incarcerated tried to file for Chapter 13 bankruptcy. However, his income was only about $14 per month. His parents said they would pay $25 per month, but the bankruptcy court ruled that this could not count as regular income. The man, however, may still be eligible to file for Chapter 7 bankruptcy. A Chapter 7 bankruptcy allows an individual to discharge their debt and keep some assets, which are considered exempt, while others may be liquidated.

The man was facing the possibility of a judgment in a civil case and had filed for bankruptcy before there was a default judgment. The case was a wrongful death suit that arose from an alleged drug sale.

People who are struggling to keep up with their expenses might wonder if bankruptcy is the right solution for debt relief. They might be concerned that they will lose assets, that their credit will be permanently ruined or that filing for bankruptcy would be irresponsible. However, the individual may wish to speak with an attorney to find out if they qualify for Chapter 13 bankruptcy, allowing them to keep assets. Ongoing debt and failing to pay debts can be just as damaging to a person's credit as bankruptcy, and bankruptcy may offer a new start for an individual who can also rebuild their credit. Bankruptcy also does not remain on credit reports permanently. Finally, filing for bankruptcy may be the most financially responsible action a person can take in some circumstances.

No Comments

Leave a comment
Comment Information

We Look At Your Case From Every Angle To Find The Solution That Is Right For You

Bankruptcy help for everyone, from the most simple to the most complex cases.

Call Us Now To Schedule A Free Initial Consultation

Contact our Nashville office at 615-686-2279 or our Cookeville office at 931-400-2218. You can also reach us via email to set up a time to talk to us about your debts.

Get Legal Help Now

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Nashville Office
618 Church Street, Suite 410
Nashville, TN 37219

Phone: 615-686-2279
Fax: 615-255-4516
Nashville Law Office Map

Cookeville Office
312 East Broad Street, Suite A
Cookeville, TN 38501

Phone: 931-400-2218
Fax: 931-526-6244
Cookeville Law Office Map

Back To Top