One of the common misconceptions about filing for bankruptcy is that you will lose all your possessions. This can be a scary thought. One asset that most people in Tennessee rely upon daily is their car. Without their car they may be unable to get their kids to school, get themselves to work, get groceries, or make it to doctor's appointments. For some people, the loss of their car could cost them their job and put their life at a standstill.
Chapter 7 can be an appealing legal process for Tennessee residents who wish to eliminate their debts through the process of a bankruptcy discharge. In order to qualify for such a discharge, however, individuals must first qualify for Chapter 7 bankruptcy. Doing so requires that their incomes not exceed certain levels; if they do, individuals may have to find other debt relief options to pursue.
The income tax filing deadline is only about a month away. Tennessee residents may be pulling together their documents in order to have their taxes completed by professionals or to undertake their own plans for meeting this annual requirement. Some may have already filed their taxes and paid what they owe based on the income they earned in the prior year.
One of the most intimidating aspects of Chapter 7 bankruptcy is asset liquidation. Tennessee residents who use Chapter 7 bankruptcy may not earn enough income to pay off their debts over time and, therefore, may be required to sell their property in order to have money to give to their creditors. Asset liquidation is the process of selling the things that a person owns, but readers should know that they will not need to give up everything they own in order to complete the Chapter 7 bankruptcy process.
Bankruptcy is an area of the law that provides Tennessee residents with legal options for overcoming their financial burdens and debts. While some individuals with sufficient incomes may use Chapter 13 bankruptcy to manage the repayment of their outstanding debts, others may find that Chapter 7 bankruptcy's liquidation process is more suited to their needs. Certain documents must be provided to the bankruptcy courts in order for a Chapter 7 petition to begin.
Missing a payment on one's credit card or another loan is a serious financial matter, but often such an issue can be rectified with careful communication and timely consideration. However, when missed payments become the norm for a Tennessee resident and financial stability seems unachievable, they may need to take more drastic matters to get their money matters back on track.
Debtors file for bankruptcy in order to achieve the elimination of their outstanding financial obligations. This is known as a discharge, and whether a Tennessee resident pursues Chapter 7 bankruptcy or Chapter 13 bankruptcy their goal is essentially the same: have the court approve the repayment of their debts and release them from their financial binds.
Chapter 7 bankruptcy is a liquidations process, which means that a debtor must sell some of their property in order to have money to use to repay their creditors. It can be an exhausting and emotional experience for a Tennessee resident, and before going down the Chapter 7 path it is wise for individuals to know what they are getting into when they decide to file their bankruptcy paperwork. This post will discuss some of the advantages and drawbacks of the Chapter 7 process but readers are reminded that its contents are not exhaustive nor are they offered as legal advice.
The goal of any bankruptcy process is for a debtor to emerge from the process without the burdensome debts they carried prior to filing for bankruptcy protection. Whether they file for Chapter 13 bankruptcy and develop a repayment plan to satisfy their creditors or Chapter 7 and use liquidation to pay down their obligations, debtors hope to attain discharge and find financial freedom.
Readers of this Tennessee-based bankruptcy legal blog may not be aware of the fact that different bankruptcy proceedings have different eligibility requirements. With regard to Chapter 7 bankruptcy, a debtor may not earn too high of an income if they want to use the liquidation process to clear out their debts. The remainder of this post will explore how income is evaluated under the laws of Chapter 7 bankruptcy, but readers are reminded that its contents are not specific legal advice.