Last week, this Tennessee bankruptcy blog discussed some of the reasons that a person may not be able to pursue Chapter 13 bankruptcy. This week's post will focus on one of the major requirements a debtor must pass in order to be eligible to file for Chapter 7 bankruptcy: the means test.
For people in Tennessee who are experiencing financial problems, Chapter 7 bankruptcy can be a sound strategy to get back into a better position and move forward with their lives. The benefits of Chapter 7 are that it is relatively easy and will clear most unsecured debt. However, debtors are often concerned about how the process goes. Included in that is the meeting of creditors. Knowing how the meeting of creditors is handled can help a debtor prepare for it. If this is a sticking point in deciding to file for Chapter 7, it need not be.
When a Tennessean takes the step to file for Chapter 7 bankruptcy, it is done with the expectation that they will receive a discharge for their debts and they can move forward free of their financial challenges. However, it is not a guarantee that filing for Chapter 7 will lead to the discharge with no subsequent issues. The reality is that the discharge can be revoked. Understanding when this can happen and other possible sticking points to a bankruptcy is a solid strategy to avoiding them.
Tennessee debtors feeling overwhelmed by what they owe to creditors and other entities might not know what to do about their debts. Chapter 7 bankruptcy is often a viable option, but certain concerns will preclude some debtors from moving forward. One issue is what property is exempt, which itemps a person can keep. Knowing what falls into the exempt will provide a foundation as to whether Chapter 7 is the preferable option.
For debtors in Tennessee who are seeking a way to get a fresh financial start, sometimes the simplest questions are the ones that are most difficult to answer. Specifically, it is important to understand the exact purpose of filing for bankruptcy under Chapter 7. This is the most commonly used form of bankruptcy for people who are seeking relief from debtors. Chapter 7 can be filed voluntarily or involuntarily. It will involve the debtor, the trustee and the creditors. The trustee will oversee the asset liquidation by taking possession of non-exempt assets and selling them for cash to be distributed to the creditors.
Tennesseans dealing with financial challenges who have decided that filing for Chapter 7 bankruptcy is the best method to get back on stronger financial ground must understand certain facts about a case. There are filing fees, administrative fees and certain information must be provided to the court to proceed. These are clerical issues that should not be a major sticking point to a Chapter 7 bankruptcy, but are still imperative to successfully complete the case.
Tennessee residents work hard for their paychecks. That's why it can be so troubling to see money being withheld from those paychecks before they even reach the worker. This is known as wage garnishment.
For most Tennessee residents who are considering the advantages and disadvantages of filing for bankruptcy, there is one main motivation: address seemingly insurmountable debt. Debt can be a creeping type of problem that finally catches up with you, or it can be the result of a sudden and unexpected turn of events, like the onset of a medical condition or the loss of employment. Whatever the reason, Tennessee residents need to know that bankruptcy is a tool for consumers to get a fresh financial start.
Tax season is in full-swing, and many people have already received their tax return check. For some, a tax return is a chance to plan a vacation or bulk up their savings accounts. But, for others, the financial boon of a tax refund check is apparently just what they need to proceed with the ultimate solution for their debt problems.
Millions of Americans are facing the financial dilemma of overwhelming debt. Tennessee residents are among those who are facing this problem. The elimination of debt can be an elusive goal for many people. Some might explore debt consolidation options. Others might try to plan a budget in order to repay the debts. Others may just "stick their heads in the sand". When a Tennessee resident is facing thousands of dollars of debt, none of the options may seem too appealing.