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What does Chapter 7 bankruptcy offer Tennessee residents?

Tennesseans who are unable to get out of deep financial holes despite their best efforts may feel their situation is hopeless. Fortunately, debt relief is possible for many who are in this situation. Chapter 7 bankruptcy proceedings have time and again gotten people out of debt and on the road to economic recovery.

Do you want to be free from creditor harassment? One of the most stressful problems of debt is incessant harassment by creditors. After a debtor files for Chapter 7 bankruptcy an automatic stay is entered that prevents creditors from continuing their efforts to collect debts or harass debtors. The stay also protects debtors from debt-related lawsuits.

Will you be able to keep your home? Because Chapter 7 is called "liquidation bankruptcy," most debtors fear this means losing cherished property, particularly a house. In many cases, though, bankruptcy filers can keep their houses, especially if they can catch up on delinquent mortgage payments in a relatively short period of time. The homestead exemption can allow a debtor to save his or her house from liquidation in many cases. Similar plans can also help bankruptcy filers hold onto their cars or trucks.

How does a Tennessee resident qualify for Chapter 7? He or she must first meet certain qualifications before a filing can be approved. One of those qualifications is a means test that will determine if a filer's income meets the bankruptcy requirements. A filer will also need to participate in credit counseling. An experienced bankruptcy attorney can help potential filers with other requirements and questions about how and when to file for Chapter 7 bankruptcy.

Source: Investopedia.com, "File Chapter 7 Bankruptcy," Daniel Kurt, Oct. 1, 2014

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-954-7180
Phone: 423-624-4002
Fax: 423-624-0509
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