Chapter 7 Bankruptcy Attorney In Chattanooga, Tennessee

Is Chapter 7 Bankruptcy Right for Me?

Otherwise known as liquidation, Chapter 7 bankruptcy can be the simplest and quickest form of bankruptcy filing and could be the best option for households, small corporations, and partnerships. Chapter 7 can be the beginning of a financial Fresh Start and may be the beginning of new hope for your brighter tomorrow.

Contact Kenneth C. Rannick, P.C. to schedule a consultation with a lawyer today at 423-205-7744

How Does Chapter 7 Bankruptcy Work?

In Chapter 7 proceedings, the Court appoints a Trustee who evaluates whether you have unprotected assets, or there were transactions that might be undone and proceeds might be redistributed to fairly pay out money to creditors according to special rules of which creditors should be paid instead of others. Most Chapter 7s, however, are considered “no-asset” cases, meaning that there is little or no non-exempt (unprotected) property to be seized and sold.

When we meet with you, an attorney will evaluate your case before it is filed and look at it as a Chapter 7 Trustee would. We evaluate whether it is likely you will lose any property. We don’t like surprises so we take every step possible to avoid any mistakes. We take every step so that you know ahead of time what you are getting into. You should not have to be afraid of the unknown. You should be fully informed and understand exactly what to expect in a Chapter 7 case.

Case Types

Establishing Eligibility for Chapter 7 Discharge

To be eligible for a Chapter 7 discharge, there may be a means test (a complicated form prepared by attorneys) which will determine eligibility to obtain a Chapter 7 discharge. Debtors who have certain types of household income under the median income, or who have predominately non-consumer debt do not have to fill out the long means test form. The formula involves income, expenses and debt. If the Consumer Debtor is considered over the median income, the last six month’s worth of income are considered along with many expenses such as car payments, back taxes, child support, school expenses, utilities, transportation expenses, medical needs, etc.

How the IRS Comes Into Play

Using the IRS’ collection standards as a guideline, eligibility for Chapter 7 sometimes won’t be possible if the Debtor can still pay at least $100/month to unsecured creditors after deducting those amounts. In the few cases where a Debtor can’t qualify for Chapter 7, a possible Chapter 13 case is the next logical step. It is crucial your lawyer is staying current on the ever changing trends in the law. The courts are constantly interpreting the complicated Bankruptcy Code as to which line items on the means test form are to be included (or excluded) as income on the test, and what type of expenses are or are not allowed.

This area of the law is very complicated. It is time sensitive to accurately and legally refine the data on the means test to ascertain whether the Consumer Debtor is eligible to obtain a Chapter 7 discharge. In our office we will not allow a paralegal do the means test. We believe it’s too complicated to entrust to a paralegal or a legal secretary to make the necessary legal analysis. Chose a very knowledgeable attorney.

Filing for Chapter 7 starts with the filing of an official petition, sworn documents, schedules and “statement of financial affairs,” which will include:

A list of all creditors
Amount and type of claims
Source, amount and frequency of income
List of all property
Detailed breakdown of living expenses

Filing Your Petition

Filing the petition typically will bring an “automatic stay,” holding off your creditors from any further collection efforts. The creditors are invited to a meeting of creditors (also known as a “341 meeting”) and you will be required to attend. Most creditors do not come to the 341 meeting. Your main responsibility will be to cooperate with your trustee. Before you file you must take a Credit Counseling Class and after you file you must timely take a Financial Management course. Both courses only take a couple of hours and may be done on line, by phone or in person. The course providers must be approved for this district so we provide you with information on who are the approved providers.

You have a very broad array of the types of debts that are dischargeable in Chapter 7. There are some that are not. You need to discuss each of your debts with an attorney for a legal opinion on that. If you file Chapter 7 you will not be allowed to keep your house or car if you don’t pay off the consensual lien against them. You can still lose your house or car after a Chapter 7, but foreclosure or repossession are a last resort for the lender. Candid discussions with an experience attorney are needed to help you figure out the best way for you to keep (or surrender) your house and vehicles. Before you file you should know if you will likely keep (or lose) your house and vehicles.

Property you get to keep in Tennessee in Chapter 7

Homestead in your real estate where you live ranging from $5,000 to hundreds of thousands of dollars depending upon your residential history, dependents and age. This area of law can be very complex and a knowledgeable lawyer can help you take advantage of subtle nuances in the law.
Bibles, schoolbooks, pictures, clothing, storage devices
Burial plots
Health aids
Lost earnings payments
Personal injury settlements to $7500 or wrongful death to $10,000
Crime victims compensation to $5000
Health or disability benefits
ERISA-qualified benefits like a 401-k
Public benefits such as Social Security or unemployment
Business partnership property
Tools of the trade to $1900
$10,000 in personal property for husband and wife each
Life insurance annuity
Life insurance cash value for a debtor or a dependant
Homeowners insurance proceeds

The exemptions in Chapter 7 can vary from case to case. It is possible that if you have moved to Tennessee over the past couple of years then the laws of other states or federal law could impact your exemptions. You must have an experience attorney evaluate your exemptions. Failure to do so could result in your being very disadvantaged.

We are a debt relief agency. We are attorneys who help people file for bankruptcy relief under the bankruptcy code.

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Hours

Mon - Fri: 8:30 am - 5:00 pm
Sat - Sun: Closed

Flexible Appointment Scheduling

24/7 Phone Availability

Contact Information

Phone: 423-205-7744

4416 Brainerd Rd.

Chattanooga, TN 37411

*$0 down to get your Chapter 7 case started applies to clients who choose to file a Chapter 7 bankruptcy with the U.S. Bankruptcy Court through Kenneth C. Rannick, P.C. We will open a Chapter 7 file for a client with as little as $0 down, however, our office will not file a client's Chapter 7 without an affordable down payment on attorney fees.

*$0 down to get your Chapter 13 case started applies to clients who choose to file a Chapter 13 bankruptcy with the U.S. Bankruptcy Court through Kenneth C. Rannick, P.C. Our law office will file a Chapter 13 without requiring any costs or attorney fees paid upfront for qualified clients who 1) have not had a prior chapter 13 dismissed within the past year, and 2) are not trying to stop a foreclosure within 20 days of filling bankruptcy.We are a debt relief agency.

We help people file for bankruptcy relief under the Bankruptcy Code.
The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute an attorney-client relationship.