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Providing answers about Tennessee bankruptcy

Any resident of Tennessee who has faced any financial difficulty understands the sinking feeling that comes with the thought that debt will last a lifetime. In some cases, financial difficulties are so bad that people are desperate to find any sort of debt relief. Unfortunately, they may turn to such short-term fixes as payday loans, but these only make the problem worse because of their high interest rates. It turns out that one of the most effective ways to eliminate debt is through a bankruptcy filing.

If someone has minimal income but considerable unsecured debt -- typically from credit cards or medical bills -- and few or no assets, then a Chapter 7 filing is generally the best way to eliminate debt. A court-appointed trustee will thoroughly evaluate a debtor's assets to figure out a way to pay creditors. With few assets, however, little is available to pay off unsecured debt, so the debt is essentially wiped clean. Fortunately, the process is legal and recognizes that perpetual debt makes it next to impossible for anyone to start over financially.

To determine whether or not they are eligible to file for Chapter 7 protection, debtors must pass a means test that requires submitting documentation that shows all income for the previous 6 months and all assets. Individuals who have income that is less than the median income for the state automatically qualify for Chapter 7 protection. Those whose income is above the median income are then subject to complicated calculations that look at total income and assets minus allowable monthly expenses. If the amount is too much, a debtor will need to file for some other form of bankruptcy protection.

Bankruptcy law is complex. As a result, the help of a Chapter 7 attorney is highly recommended. Our firm has extensive experience in this area.

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

Phone: 423-624-4002
Toll Free: 800-257-7594
Fax: 423-624-0509
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