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Helping good people through bad times

September 2016 Archives

Chapter 7 trustees have certain duties in the bankruptcy process

While many people in Tennessee may have either considered filing for bankruptcy or know someone who has, it is important to keep in mind that in the end, bankruptcy is a legal process. One part of the legal process that follows a Chapter 7 bankruptcy filing is the appointment of a Chapter 7 trustee. This person is chosen by random and is to be an independent party, although if there is a conflict of interest, he or she can withdraw from the case.

Can a formal non-bankruptcy workout help me?

Filing for bankruptcy may be the preferred option for some residents in Tennessee who are simply drowning in insurmountable debt and have no other way out. However, other debtors in Tennessee facing a significant amount of debt that they are having trouble keeping up with may have another option, a non-bankruptcy workout.

In what order will debts be paid in a Chapter 13 repayment plan?

Some people in Tennessee who are facing unmanageable debt, harassing calls from collection agencies and other financial hardships may decide that their best course of action is to file for Chapter 13 bankruptcy. When a person enters into a Chapter 13 repayment plan, in general he or she will have to make regular monthly or bimonthly payments to the bankruptcy trustee. The bankruptcy trustee then dispenses the payments to cover administrative fees and the person's debts. There is a certain priority schedule in which fees and debts will be paid.

What requirements must be met to file for Chapter 13 bankruptcy?

For some individuals in Tennessee, filing for bankruptcy is the best way to overcome their financial challenges and wipe the slate clean. One type of bankruptcy someone in this situation may consider filing for is Chapter 13 bankruptcy. A Chapter 13 bankruptcy does not liquidate the debtor's assets, but instead lets them keep their assets and pay their creditors back over the next three or five years via a plan that is approved by the court. However, to qualify for Chapter 13 bankruptcy, a debtor must meet several requirements.

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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