Chapter 13 Bankruptcy in Lexington, TN, Stops Foreclosure Fast
If you’ve received a foreclosure notice, a garnishment order, or creditor calls that won’t stop, filing bankruptcy gives you federally protected relief. Walker, Walker & Walker handles filings for families across the region from three offices in Lexington, Jackson, and Dyersburg. The consultation is free and confidential.
What Chapter 13 Is and What It Stops the Day You File
Chapter 13 is a court-approved repayment plan that reorganizes your debt into monthly payments your income can support. Also called a wage earner’s plan, it lets you keep your property while paying back what you owe over three to five years. One monthly payment goes to a bankruptcy trustee who distributes it to your creditors according to the plan.
What the Automatic Stay Does Immediately
The moment we file your petition with the U.S. Bankruptcy Court for the Western District of Tennessee, an automatic stay goes into effect. Every collection action must stop immediately:
- Foreclosure proceedings halt that day
- Wage garnishment ends and your employer gets notified
- Vehicle repossession stops
- Creditor calls, letters, and lawsuits must cease
In Chapter 13, the stay remains active for the entire plan term, not just during the initial filing period.
Who Qualifies
Regular income, wages, self-employment, Social Security, disability, pension, or rental income all count
Debts within federal limits. We confirm your numbers at the free consultation
No bankruptcy dismissed in the past 180 days for failure to appear or comply with court orders
Filing doesn’t require income below the Tennessee median. It requires that income exists. Earn above the median, and the plan runs five years. Below it, three years is typical. We calculate your exact figure at the first appointment.
What Filing Protects
Your home
Foreclosure stops the day we file. Mortgage arrears become a line item in the plan, paid off over time alongside your regular mortgage payment. No lump sum required.
Your car
Repossession stops immediately. If the loan is more than 910 days old, we can often reduce the balance to the vehicle's current market value, which lowers your monthly payment.
Your retirement accounts
Your 401k, IRA, and pension stay untouched. Creditors can't reach them during the plan.
Back taxes
IRS and Tennessee Department of Revenue obligations go into the plan and get paid over time. Penalties and collection stop while it runs.
Co-signers
The co-debtor stay protects anyone who co-signed a consumer loan from collection while the plan is active.
Chapter 13 vs Chapter 7
| Factor | Chapter 13 | Chapter 7 |
|---|---|---|
| Timeline | 3 to 5 years | 4 to 6 months |
| Income requirement | Regular income needed | Must pass Tennessee means test |
| Repayment plan | Yes, monthly payment to trustee | No repayment plan |
| Stops foreclosure | Yes, for the full plan term | Temporarily only |
| Catch up on mortgage arrears | Yes, spread over plan term | No |
| Car repossession | Stopped, cramdown possible | Stopped during case only |
| Back taxes | Paid through plan over time | Recent tax debt not dischargeable |
| Unsecured debt | Partially paid, remainder discharged | Fully discharged |
| Credit report | 7 years from filing | 10 years from filing |
| Best for | Homeowners behind on mortgage | Fast debt discharge, no major assets at risk |
Not sure which one fits? We look at your numbers at the free consultation and give you a straight answer. You can also read more about Chapter 7 bankruptcy before your appointment.
How Our Filing Process Works
Free Consultation
One of our attorneys reviews your income, debts, and what you want to protect. We confirm which chapter fits before anything gets filed.
Means Test Calculation
We calculate your disposable income and confirm your plan length and monthly payment using your actual figures.
Petition Filed
We file with the U.S. Bankruptcy Court for the Western District of Tennessee. The automatic stay takes effect the same day.
341 Meeting of Creditors
A short trustee meeting, usually ten to fifteen minutes. We attend with you. Creditors rarely appear and the process is straightforward.
Plan Payments and Discharge
You make monthly payments to the trustee for three to five years. When the plan ends, remaining eligible unsecured debt gets discharged.
Why Families Choose Walker Walker & walker
Exclusive Bankruptcy Practice
Forty years of bankruptcy and debt relief in the region, with no other practice areas mixed in.
Richard Walker's Administrative Law Judge Background
Richard Walker spent thirteen years as an Administrative Law Judge for the State of Tennessee before returning to private practice.
30,000 Filings Completed
Richard Walker spent thirteen years as an Administrative Law Judge for the State of Tennessee before returning to private practice.
Three Offices Across the Region
Lexington, Jackson, and Dyersburg. No family has to drive far to sit with a real attorney.
Free Consultation, Confidential and No Pressure
Every consultation carries no obligation. We respond within one business hour.
Meet Our Attorneys
Ken Walker
- Founding Attorney
B.S. Business Administration, University of Tennessee Martin | J.D. University of Memphis School of Law
Ken has practiced bankruptcy law in this area since 1980, co-founded the firm in 1990, and still takes cases. He also serves as City Attorney for Lexington. Admitted to the U.S. Bankruptcy Court, Western District of Tennessee.
- Member: Tennessee Bar Association | Tennessee State Courts | U.S. District Court, Western District of Tennessee | U.S. Bankruptcy Court, Western District of Tennessee
Richard Walker
- Founding Attorney
B.S. University of Tennessee Martin | J.D. Nashville School of Law
Richard co-founded the firm after thirteen years as a Tennessee Administrative Law Judge. He’s a member of the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys. Admitted to the U.S. Bankruptcy Court, Western District of Tennessee.
- Tennessee Bar Association | American Bankruptcy Institute | National Association of Consumer Bankruptcy Attorneys Admitted: Tennessee Supreme Court, U.S. District Court Western District TN, U.S. Bankruptcy Court Western District TN
Bethany Garland
- Associate Attorney
Bethany worked as a bankruptcy paralegal before earning her law degree, giving her ground-level knowledge of how cases move through the system. Focused exclusively on consumer bankruptcy since 2015. Admitted to the U.S. Bankruptcy Court, Western District of Tennessee.
- Licensed: All Tennessee State Courts, U.S. District Court Western District TN, U.S. Bankruptcy Court Western District TN Member: Tennessee Bar Association
All three carry five-star ratings from clients across the region.
Three Offices Serving the Region
- Henderson County
Lexington
80 South Main Street, Lexington, TN 38351 (731) 968-3356 Serving Henderson, Carroll, Decatur, Chester and surrounding counties.
Serving Henderson, Carroll, Decatur, Chester & surrounding counties
- Madison County
Jackson
218 West Main Street, Jackson, TN 38301 (731) 427-5568 Serving Madison, Gibson, Crockett, Haywood, Hardeman and surrounding counties.
Serving Madison, Gibson, Crockett, Haywood, Hardeman & surrounding counties
- Dyer County
Dyersburg
120 South Main Ave, Dyersburg, TN 38024 (731) 285-8165 Serving Dyer, Obion, Lake, Lauderdale, Tipton and surrounding counties.
Serving Dyer, Obion, Lake, Lauderdale, Tipton & surrounding counties
Where We File and Who We Serve
Walker, Walker & Walker’s primary office is in Lexington, Henderson County, serving Henderson, Carroll, Decatur, Chester, and surrounding communities. Families from Parsons, Lexington, Scotts Hill, and the wider Henderson County area come to our South Main Street office first.
Our Lexington office sits on South Main Street in downtown Lexington, near the Henderson County Courthouse. US-70 connects Lexington to Jackson to the east and Huntingdon to the west, making us accessible from across the county in under thirty minutes for most clients.
Frequently Asked Questions
How does filing Chapter 13 work in Tennessee?
You file a repayment plan with the bankruptcy court. One monthly payment goes to a trustee, who pays your creditors. Plans run three to five years. At the end, leftover eligible debt gets discharged.
Can filing stop foreclosure here?
Yes, the day you file. The stay halts foreclosure immediately and holds throughout the plan. Missed mortgage payments fold into the plan so you catch up over time rather than paying a lump sum.
How much does filing cost in Tennessee?
The court filing fee is $313. Attorney fees depend on your case. We walk through everything at your free consultation so you know the full cost before we file.
How much do you typically pay back?
It depends on your income and debts. Mortgage arrears and car loans get paid in full. Credit cards and medical bills usually come in at less than the full balance.
Will I lose my car if I file?
No. Repossession stops the day you file. If the loan is more than 910 days old, we can often reduce the balance to what the car is worth right now.
What happens at the 341 creditor meeting?
A short meeting with the trustee, usually ten to fifteen minutes. We attend with you. Creditors rarely show. Most clients find it much calmer than they expected going in.
What can't you do while in the plan?
New debt requires trustee approval. You must file tax returns each year and keep plan payments current. Miss too many and the court can dismiss the case.
Can self-employed people file in Tennessee?
Yes. Self-employment income counts toward qualification. We build the plan around net income after business expenses. Many self-employed clients across the region complete their plans without difficulty.
What is the downside to this type of filing?
The plan runs three to five years and requires consistent monthly payments. Missing payments risks dismissal. It also stays on your credit report for seven years from the filing date.
How long does it stay on your credit report?
Seven years from the filing date, compared to ten years for Chapter 7. Most clients start rebuilding before the plan even ends because the underlying debt problem is finally resolved.
Schedule Your Free Consultation Today
If you’ve fallen behind on your mortgage, your wages are being garnished, or debt has become unmanageable, the time to call is before things get worse. Walker, Walker & Walker has helped more than 30,000 West Tennessee families find a legal path forward, and every consultation is completely free, fully confidential, and carries no pressure or obligation. We respond within one business hour.
We also handle Chapter 7 bankruptcy, foreclosure defense, wage garnishment defense, and debt relief and settlement. Visit us at Walker, Walker & Walker, PLC, 80 South Main Street, Lexington, TN 38351, or call (800) 748-9889.
- Lexington: 80 South Main Street, Lexington, TN 38351 | (731) 968-3356
- Jackson: 218 West Main Street, Jackson, TN 38301 | (731) 427-5568
- Dyersburg: 120 South Main Ave, Dyersburg, TN 38024 | (731) 285-8165 Toll-free: (800) 748-9889