Despite what you may have heard foreclosures are happening every day across America and across Tennessee.  If you read the Knoxville News Sentinel or the Mountain Press published in Sevierville you’ll continue to see the foreclosure notices published advising the world that another home is to be sold as a result of mortgage defaults.

The National Bankruptcy Research Center has reported that Chapter 13 bankruptcy filings increased again this October compared with the same period last year.  Of course, a Chapter 13 bankruptcy case helps stop the foreclosures and allows the homeowner to cure the overdue payments over an extended period up to 60 months.

Many folks have worked through the mortgage modification process for months and months only to get the word: not approved.  That’s actually two words.  When your hopes are dashed by the “not approved” message, it’ often time to consider what you’ve been avoiding:  a Chapter 13 bankruptcy.  In today’s economic climate, for many the only way to save your home is by reorganizing all your debt in a Chapter 13.  Since I’ve worked with people from Knoxville, Sevierville, Maryville and Jefferson City, I know for a fact that no one wants to lose their home.  People that have worked hard all their lives are finding themselves in the difficult situation of potentially losing their home.  That’s what Chapter 13 was designed to prevent.

In a Chapter 13 you make payments, monthly or weekly, to pay all of your secured debt, and a portion of your unsecured debt.  The high interest rates on your credit cards stops upon the filing.  The credit cards are in the same position as other unsecured creditors.

All the calls they’ve placed to you, to your family and your work stops.  The power moves from them over to you.  That’s a good feeling.

Everything I’ve talked about here is what’s driving up Chapter 13 filings.  There’s a reason Chapter 13 bankruptcy cases make up approximately 30% of the cases filed.  Only an experienced bankruptcy attorney can help you evaluate whether a Chapter 13 is the right solution to your financial problems.  The good news is that there is a solution.

Photo Credit:  Flickr: repres