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Understand specific classifications during a Chapter 7 bankruptcy

A person who files a Chapter 7 bankruptcy is asking the court for debt relief through liquidation. In order to file for this chapter, you have to meet the means test that helps the court to verify that you don't have the ability to pay for these debts through a court-supervised restructuring.

Specific requirements for Chapter 7 bankruptcy

Realizing that you're in over head with debts is a traumatic experience for some people. One option that you have in this case is filing for bankruptcy. There are two primary persona bankruptcies that people file – Chapter 13 and Chapter 7. A Chapter 13 is reserved for people who have an income and can keep up with payments to the bankruptcy trustee. A Chapter 7 is for people who don't have the income required to do that.

The pros and cons of a Chapter 7 bankruptcy

When residents of eastern Tennessee begin to consider seeking relief from their creditors by filing a petition for bankruptcy, they are faced with choosing between a Chapter 7 petition and a Chapter 13 petition. The choice is made more difficult because all Chapter 7 filers must demonstrate that their income is below the income limit for such petitions. The exact calculation can be complex, but the general rule of thumb is that a person cannot pass the means test if his or her income is more than the median income for a similarly sized household in Tennessee. Assuming that the potential bankruptcy filer can pass the means test, the relative pros and cons of a Chapter 7 bankruptcy are set out below.

Understanding the means test in Tennessee

Most Tennessee residents who are considering filing a bankruptcy petition realize that they must decide between filing under Chapter 7 or Chapter 13. Prospective filers also understand that most, if not all, debts can be discharged in a Chapter 7 proceeding and that a Chapter 13 proceeding can only help the debtor renegotiate the terms of existing debts to allow more time to pay or, in some cases, to reduce the balance due. Most debtors prefer Chapter 7 for obvious reasons, but Chapter 7 does not provide relief for every bankruptcy filer. In order to be eligible for Chapter 7 and the total discharge of most obligations, a debtor must first pass what is called the "means test."

Tennessee truck collision causes firm to file Chapter 7 petition

One of the most notable features of the civil court system in the United States is the increasing frequency of so-called "mass tort litigation." One of the most notable mass tort lawsuits has been the claims against miners and users of asbestos, but the mass tort device has been used in many other instances, not all of which have been as big as the universe of asbestos claims filed since the early 1960's. Sometimes, the only defense is the filing of a bankruptcy petition to both stop the lawsuit from going forward and also to liquidate the defendant's assets before judgment can be entered.

Property exemptions can make a big difference

Many Tennessee residents feel overwhelmed by their mortgage, credit card balance, medical bills and other forms of debt, but they are reluctant to seek out the quickest, most effective way of returning to financial health. They fear that filing for protection under Chapter 7 of the U.S. Bankruptcy Code will mean losing everything they own. That is a misconception.

The basics of straight bankruptcy and what it can do

This blog frequently discusses the different types of bankruptcy and what different bankruptcy options can do for struggling consumers, homeowners, businesses and others. Chapter 7 bankruptcy, commonly referred to as straight bankruptcy, is a bankruptcy option anyone considering bankruptcy should be familiar with when determining which bankruptcy option is best for them.

Many Tennessee foreclosures tied to reverse mortgages

We are now more than 10 years removed from the housing market collapse that set off the Great Recession, and the dust is still settling. Though the economy has improved in many ways, many Tennessee residents are still struggling with mortgages and other forms of debt.

Fighting wage garnishment

When you're deep in debt, it can feel like an impossible situation. You may have fallen behind on credit card bills, medical bills or other debts, but you're working and trying to save up the money to pay off your unpaid balance. And then, you see that one of your creditors is not going to wait. It has already started taking a chunk out of your take-home pay through wage garnishment.

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