A Chapter 13 filing may be the preferred method for consumers with assets they don't want to lose, and willing to retire as much of their debts as possible, but under a less-pressured structure. Some debt balances may be partially discharged, and the filer agrees to a monthly payment to the trustee for distribution to the remaining creditors.

Any bankruptcy is a serious mark against your credit record, but Chapter 13 filings may be perceived as slightly less serious than Chapter 7 filings since you are exhibiting an interest in retiring your debts. (The previous definition applies to Tennessee residents.) For specific bankruptcy information based on your city of residence, visit www.citylegalguide.com for more information.

Chapter 13 bankruptcy allows you, if you have a regular income and limited debt, to keep property, such as a mortgaged house or car, that you otherwise might lose. In Chapter 13, the court approves a repayment plan that allows you to pay off a default during a period of three to five years, rather than surrender any property.

If you are facing a bankruptcy situation, don't wait; contact a trained financial coach in your area.

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