Finding The Way Forward For You

Finding The Way Forward For You

When Is Chapter 7 Bankruptcy An Option?

The cycle of debt may seem inescapable, but you almost always have options. Chapter 7 bankruptcy allows both individuals and business organizations in Tennessee to obtain a discharge of their debts through liquidation of their assets, essentially giving them new financial lives. While filing for Chapter 7 bankruptcy is a big decision that should never be taken lightly, it is also likely not as life-altering as you may think.

As a debt relief agency in Clarksville, we at the Kennedy Law Firm, PLLC can analyze your financial situation to determine if Chapter 7 offers the kind of relief you are looking for. Our attorneys can examine all your options and guide you through the process to help you obtain the full benefits available under the U.S. Bankruptcy Code.

Chapter 7 basics

Chapter 7 is the most basic and most common form of bankruptcy and accounted for nearly 70 percent of all business and personal filings in 2012, according to the Administrative Office of the U.S. Courts. The Ch. 7bankruptcy process begins when a debtor files a petition containing detailed information about his or her debts, assets and income. A U.S. trustee working for the Department of Justice takes possession of that debtor’s nonexempt property and sells it, distributing the proceeds to the creditors identified in the petition. If the debtor cooperates and the participating creditors do not raise any objections, the bankruptcy judge discharges the debtor’s qualifying unsecured debt. Typically, the process takes a matter of months to complete.

Things to consider when considering Chapter 7

There are two major questions you must consider before deciding to file for Chapter 7: What assets are you going to keep? How much of your debt will be discharged? State law provides fairly generous exemptions to the property that must be liquidated during the Chapter 7 process. Even these exemptions, however may not be enough to allow you to keep your home. Therefore, if your principle goal is to keep your house, Chapter 7 may not be the best option for you.

Likewise, the type and nature of your debt can impact the overall effectiveness of Ch. 7 for resolving your debt. Several types of debt are not dischargeable:

  • Domestic support obligations
  • Personal injury judgments related to intentional conduct or drunk driving
  • Criminal fines and restitution
  • Debts incurred due to fraud
  • Recently assessed income tax liabilities
  • Student loans
  • Mortgages and other secured debts
  • Luxury purchases made within three months of filing

If your problematic debt falls into one of these categories, Chapter 7 may not provide the relief you are seeking. As a comprehensive debt relief agency, the Kennedy Law Firm, PLLC can help you consider other options that may be more appropriate to your particular set of circumstances.

Call us today to take the first step toward your new financial future

If you have been living with the stress and embarrassment of debt in Tennessee, our attorneys at the Kennedy Law Firm, PLLC may help you get relief. Call us today at 931-444-5620 or contact us online to schedule a free debt analysis with one of our knowledgeable lawyers. We offer three convenient office locations in Clarksville form that we serve the counties of Montgomery, Davidson, Stewart, Cheatham, Houston, Dickson, Humphreys and Henry.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.