Overview of Bankruptcy Information;
Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.
This page is intended as an overview of bankruptcy information for Tennessee. Please click this link to: contact us for more information. Click this link for forms to download: forms & links Bankruptcy is a legal declaration of the inability to repay debts. You continue to manage your bank account and income. You are liable for all debts you make after the date of bankruptcy filing. By law, all assets and debts are required to be listed on a bankruptcy petition.
There are two types of consumer or non-business bankruptcy. Individuals or couples may be eligible to file Chapter Seven or Chapter Thirteen Bankruptcy depending on specific factors such as income level and type of debt. Below are brief explanations about the two consumer bankruptcy types. More information is available on the menu to the left.
Chapter 7 Bankrutpcy: Sometimes called a “straight”, “complete” or "liquidation" bankruptcy, chapter 7 is a liquidation proceeding. The debtor turns over all non-exempt property to the bankruptcy trustee who then converts it to cash for distribution to your creditors. The debtor receives a discharge of all dischargeable debts usually within four months. You may be able to keep your personal items and real estate, depending on how much equity you have in those items. You must be up-to-date on payments for any secured debt in which you would like to keep the collateral (automobiles, finance company loans, etc.) Click this link for more informaiton: Chapter 7
Chapter 13 Bankruptcy: Also known as a "reorganization" or "wage-earner", chapter 13 is filed by individuals who want to pay off their debts over a period of three to five years. This type of bankruptcy appeals to those who have non-exempt property that they want to keep. It is designed for individuals who have a regular income and are able to pay reasonable household expenses with some left over to pay off their debts. Generally, this chapter is filed if you are behind in payments to creditors who you have secured debts with (homes, automobiles, etc.). In a chapter 13 bankruptcy, your unsecured creditors will receive a percentage of what you owe them.
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