Tennessee Bankruptcy Facts
Our bankruptcy attorneys in Tennessee know how easy it is for bills to pile up. Before you know it, you are struggling in debt and have nowhere to turn to. If you have been considering filing for bankruptcy, our featured lawyers are here to make sure the process goes quickly and smoothly.
All of the bankruptcy lawyers you will find on our site have experience in eliminating unsecured debt associated with unpaid credit card bills, loans, medical bills, lawsuits, and mortgages. They do everything they can to prevent the liquidation of your property and assets and will help you either get rid of your debt completely or arrange for a payment plan. When you work with one of our attorneys, you will always have a legal professional by your side to answer any of your questions. Your representative will take care of all the paperwork involved in filing your case, will speak to creditors and will represent you in court.
To get started, call one of our bankruptcy lawyers in Tennessee near you and be on your way to living debt free.
Bankruptcy is a way to reduce or possibly even wipe out debt of individuals and businesses. It is a federal process that involves petitioning a court under a specific chapter and then their being approved for a liquidation of assets or a repayment plan. Because there are several chapters that can be filed in Tennessee, it’s important to understand which you qualify for and what difference each chapter can make in the status of your debt.
What Chapter Best Suits Me?
There are six chapters under U.S. Bankruptcy Code that may be filed in Tennessee, but two are by far the most commonly sought: Chapters 7 and 13. Chapter 7 is known as “liquidation bankruptcy” because a petitioner’s assets are liquidated in exchange for the elimination of their debt. Chapter 13 bankruptcy, commonly referred to as “reorganization bankruptcy” involves debtors getting on a payment play to reimburse creditors.
Each of these two chapters carries a unique set of pros and cons, so it’s important that you fully understand each process so you can make an informed decision in the event you qualify for both. Either way, your Tennessee bankruptcy will be on hand to help you every step of the way and will guide you through the decision-making process so you can obtain quick and easy debt relief.
Should I Choose Tennessee Chapter 7 Bankruptcy?
Chapter 7 is ideal for debtors who have amassed a significant amount of debt and who are not able to pay it down in the foreseeable future. You may file this petition if your income is below the state median for a household of your size or if you are unable to pay back at least 25 percent of your debt. The following are some important facts regarding liquidation bankruptcy in Tennessee you should be aware of:
- - Chapter 7 can be filed by both individuals and businesses
- - Most unsecured debt is discharged, providing debtors with a “clean slate”
- - Chapter 7 bankruptcy protection can be exited in as little as 3 months
- - Some assets are liquidated but your home, certain personal effects and pension plans are exempt from creditor seizure
Is Chapter 13 Reorganization Bankruptcy the Better Choice?
If you have a steady flow of income coming in, make too much money to qualify for Chapter 7 or simply do not like the idea of liquidating your assets, Chapter 13 may be the best choice for you. The following are a few details about this chapter to help you decide if you wish to petition the Tennessee bankruptcy court for approval on a reorganization plan:
- - Chapter 13 can only be filed by consumers
- - Assets are NOT liquidated
- - Debtors are placed on a payment plan to lower debts but debts are never fully eliminated
- - Can emerge from bankruptcy protection within three to five years
- - Ideal for debtors facing foreclosure
If bankruptcy sounds like a viable option for you, speak to one of our featured Tennessee bankruptcy lawyers today to get started on your optimal debt relief plan right away.