Considering Filing for Ch. 7 Bankruptcy?

Our knowledgeable Middle Tennessee bankruptcy attorneys are now reviewing new cases!

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It’s no secret that the last few years have been hard on most folks, both from a financial perspective and otherwise. Lost income due to the shutdown for COVID-19 was just the beginning. Inflation has also taken a huge toll, with food prices, housing, and other expenses skyrocketing. If your family has been hit hard in recent years and you need to talk to a helpful bankruptcy attorney located in either the Upper Cumberland or Middle Tennessee areas, please give us a call and set up an appointment to come in a speak to a member of our team here at Griffin Law Group, PLLC.

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Bankruptcy isn’t always the answer, of course, but it can be a very useful tool for families experiencing a financial crisis. We are most commonly asked about Chapter 7 bankruptcy. This type of bankruptcy, which gets its name because it is found in Chapter 7 of Title 11 of the United States Bankruptcy Code, is considered more of a “fresh start” bankruptcy as compared to other types of bankruptcies. For instance, a Chapter 13 bankruptcy is more like a restructuring or reorganization plan; most or all debts will still have to be paid, but the bankruptcy court may allow the debtor additional time, during which creditors may not engage in their usual collection efforts.

Of course, not everyone will immediately qualify for a Chapter 7 bankruptcy. In order to be eligible to file for this type of bankruptcy, which is always filed in federal court rather than state court, a debtor usually has to first undergo credit counseling from an approved credit counseling agency. This counseling can be completed through a one-hour online course prior to filing the bankruptcy and a one-hour course done after the bankruptcy has been filed. Many types of debts are dischargeable in a Chapter 7 bankruptcy, but not all debts are subject to discharge. Typically, child support obligations (both current and past due) cannot be discharged through the bankruptcy courts, nor can student loans or most types of federal, state, and/or local taxes.

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For some people, one of the best things about filing for Chapter 7 bankruptcy is that an automatic stay goes into effect once the Petition for Chapter 7 bankruptcy is filed. This means that your creditors can no longer call you, harass you, garnish your wages, file a lawsuit against you, execute against your assets, or make other debt collection attempts. Depending on your particular situation, you may be able to keep your car and/or house in a Chapter 7 bankruptcy, but you will have to keep paying on those debts, not only during the bankruptcy, but afterwards as well. 

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If you think filing for bankruptcy in the United States Bankruptcy Court for the Middle District of Tennessee might be an option for you, please do not hesitate to phone our office and set up an appointment to speak to an experienced Sparta bankruptcy attorney about your situation. You can reach us at 931-837-2050. Please bring a list of all of your current assets, debts, other financial obligations, etc., as well as documentation of these things. Together, we can take the steps necessary to point your family toward financial freedom!