Debtors in Tennessee who are considering filing for bankruptcy may be interested to learn the changes that have been made to the federal rules of bankruptcy procedure. The changes, which became effective on December 1, 2017, also include a new plan form for Chapter 13 bankruptcy.
The president of the American Bankruptcy Institute states that the new form and rule modifications will help to make the Chapter 13 bankruptcy process more uniform across the country and will allow Chapter 13 plans to be confirmed at a faster pace. The ABI president also stated that even though a single Chapter 13 plan form required to be used nationwide instead of any local plan forms is the goal, the changes are an improvement from what was previously in place.
Individuals who have substantial debt and a steady stream of income can file for Chapter 13 bankruptcy to seek debt relief and maintain ownership of the property at the same time. This type of bankruptcy requires filers to submit a three-to-five-year payment plan that applies their future income to part or all of their debts.
Amended Rule 3015(c) requires Chapter 13 filers to use the new official form if no local form plan is available. Bankruptcy practitioners should examine the local general orders, public notices and rules of their court to find out if they are required to use the new local form. Research results haves show that out of 94 districts, just 13 districts use the new national form.
A bankruptcy attorney may be consulted to advise on how Chapter 13 bankruptcy may be used to get a new financial start. The attorney may advise on how the process could stop foreclosures and creditor harassment and can reduce interest payment for credit card debt. Assistance may be provided with developing a payment plan.