Creditors in Tennessee may need to make themselves aware of changes to existing bankruptcy laws. These changes may impact those who have secured claims, unsecured claims or lien judgments in a Chapter 13 case. One important change relates to filing a proof of claim. Failure to do so may result in not being included in a debtor’s Chapter 13 repayment plan. However, liens a creditor may have do not go away merely because a proof of claim is not filed.

It may be possible for a judicial lien to be removed as part of a bankruptcy proceeding as opposed to being a motion separate from the filing itself. Collateral valuations may also be done during the case itself as opposed to being done separately. Proofs of claim must be submitted within 70 days of a bankruptcy filing, and in cases where a home is used as collateral, creditors may have 120 days to file.

Creditors will have up to 21 days to file an objection after receiving a notice of a confirmation hearing. Debtors may request confirmation that a secured debt has been satisfied when a Chapter 7, 12 or 13 case comes to a conclusion. It is up to a creditor to adhere to these new deadlines and pay attention to other details when it comes to preserving their rights in a bankruptcy case.

Debtors may obtain debt relief by filing for Chapter 13 bankruptcy. In some cases, it may be possible to retain property while the case is ongoing, and it may also be possible to have debts divided between secured and unsecured portions. Unsecured debts may be discharged at the end of a three- or five-year repayment period, which may reduce an individual’s debt obligation after a bankruptcy case concludes.