Legal Question in Bankruptcy in Tennessee

Re: Chapter 7 & 13

You asked:

Q1: By filing Ch 7, could my wages be garnished?

ANSWER: Do you mean garnished by a Creditor, or the Bankruptcy Court?

I earn slightly above min wage. I have 6K in credit card debt. I also have a $9.8K balance towards a timeshare at 17.9% interest.

Q2: If a Ch 13 was filed, what is the likelihood of a reduction in the balance and interest rate of the timeshare?

ANSWER: Probably no reduction. This is treated in Chapter 13 as a real mortgage, which means it is a nonmodifiable debt. However, if you surrender the timeshare back to the Creditor, it CAN be treated then as an unsecured debt and modified to pay less than you owe.

From past experience, what have you seen? If a reduction, is it slight or drastic?

ANSWER: I've seen that most people decide to surrender their timeshares and get out of the (generally) bad deal that was given them.

Timeshare: starting balance $12.8K, now same propery being offered for $22K, current balance $9.8K.

What town are you in? I'd be glad to carve out a free 30 minute consultation at mutal convenience.

Thx,

Rob