About Filing Bankruptcy under Chapter 7
Has your debt overwhelmed you? Do you owe more money
than you can repay in a reasonable period of time? Maybe
you lost your job, or have suffered a loss of income
some other way? Perhaps, your Adjustable Rate
Mortgage has skyrocketed with no end in sight? Maybe you
are facing foreclosure, or creditor harassment,
financial failure? Are you
bankrupt –
insolvent and unable to pay your debts as they come due,
or at all.
No matter what has brought you to this point, you
find yourself considering debt relief options.
This is when you need professional legal counsel from a
debt relief, bankruptcy attorney. There
are a multitude of programs that are popularly termed as
"debt relief solutions" - ways to help you fix your
financial problems. Some of these are good honest
debt solutions, some are not. Some of the
so-called “debt relief ” programs are quite costly and
do little to solve your overall debt problems. Before
you decide on the option that is right for you, you
ought to
consult with a bankruptcy
attorney about chapter 7.
What Bankruptcy Options Are Available?
For an individual (or married couple)
consumer that
is insolvent there are two (2) options
provided under the Federal Bankruptcy Code:
Chapter 7 and Chapter 13. Both of these
chapters of bankruptcy entail requirements that must be
met prior to filing for bankruptcy. For instance, you
must attend an approved Pre-bankruptcy Credit Counseling
Interview (in person, phone or internet options
available).You must also meet certain income and expense
qualifications by passing a bankruptcy
means test. For
the specific bankruptcy qualifications you should
consult with a bankruptcy lawyer.
Chapter 7, What Does
It Do for You ?
A
Chapter 7 bankruptcy is
also known as a liquidation bankruptcy.
When filing bankruptcy Chapter 7,
your assets are subject to scrutiny by the
Bankruptcy
Trustee. The
bankruptcy trustee may
liquidate or sell any asset or property which is
not exempt or encumbered by a significant
security lien (home mortgage, car loan, etc.),
and use the proceeds of sale to pay your
unsecured creditors – credit cards, personal
loans, medical bills, etc. This does not mean
that you will lose all of your property in
chapter 7, talk to your lawyer about this issue.
There are
bankruptcy
exemptions available under State Law, and/or
Federal law, which allow you to keep certain
property up to certain exemption values.
For instance, under current Tennessee law most
types of personal property are
exempt up to a
total of $10,000.00 per individual bankruptcy
Debtor. There are also exemptions for
clothing, books, and of course limited
exemptions for your homestead (primary
residence). Speak to an experienced
bankruptcy attorney about your specific assets
and what property may be exempt. Be sure to tell
the lawyer for bankruptcy about all of your
property.
Chapter 7 Offers Complete
Erasure of Unsecured Debt
In a chapter 7 bankruptcy-
also called complete and liquidation bankruptcy- you can have
all of your unsecured debt
(credit cards, personal loans, medical bills,
etc.) discharged (wiped out,
erased) forever. You can
also choose to surrender your house
back to the mortgage company and have any
deficiency (difference in sales price and
mortgage balance) discharged. In
fact, you can surrender any secured asset (car,
boat, motorcycle) and have even the secured debt
discharged. Or you can, under certain
circumstances, choose to reaffirm such “secured”
debts. Of course, you would need to be
current and in good standing with that
particular creditor,
as the lender must agree to allow you to
reaffirm the loan. That is, you
may be able to "take the loan out of bankruptcy"
and affirm your original promise to pay,
and continue your original contract. Your
bankruptcy lawyer will
thoroughly discuss reaffirmation with you to be
sure that it is the right option. Both you
and the bankruptcy attorney
are required to
sign a statement that a reaffirmation agreement
will not cause an undue financial hardship.
In other words, you can reaffirm the debt, and
still have sufficient income to meet your living
expenses.
Seek legal advice about chapter 7 bankruptcy
from a bankruptcy attorney
Obviously, an internet site can not answer
all of your questions about chapter 7
bankruptcy, nor determine if it is the right
debt relief solution for your situation.
Contact a bankruptcy attorney
for a thorough review of your situation and
legal advice from
a seasoned legal professional, an experienced
chapter 7 bankruptcy lawyer in Chattanooga, TN. Bankruptcy chapter 7 provides complete debt
relief, with some
exceptions, but the
bankruptcy process is complicated. You must
disclose all debts in a bankruptcy petition,
including debts owed to family members or
friends. You must also disclose all income, and
assets to the bankruptcy court – and even
disclose certain other financial transactions.
Failure to disclose all relevant information in
a chapter 7 bankruptcy petition could result in
criminal charges. This is why
having a bankruptcy attorney is
vitally important. The bankruptcy lawyer will
make sure that your petition for chapter 7 is
accurate and correctly filed.
Contact Purple Law Firm to schedule a chapter 7
consultation appointment about filing chapter 7
bankruptcy.
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Retain a Chattanooga
Bankruptcy Attorney with experience
Attorney
Jim Purple has been representing and counseling people
through the process of chapter 7 bankruptcy for over 29 years. Put experience on your side and
retain a bankruptcy lawyer who cares about
your situation and understands your fears. Choosing the right bankruptcy attorney can
be a difficult task. Purple Law Firm in Chattanooga, the attorneys and legal staff,
recognize that fears and concerns that come with bankruptcy, and are here to help
you understand and to make the process of chapter 7 bankruptcy as
smooth as possible for you.
Chapter 7 Benefits
- Stop Creditor
Harassment -
immediately
- Discharge - wipe
out credit card debt
- Discharge medical
bills
- Discharge other
unsecured debts
- Surrender Your
House Discharge the Mortgage
- Surrender your
upside down car
- Keep your house-
reaffirm your mortgage
- Get rid of
judgments, end garnishments
-
Get a fresh
financial start
Bankruptcy Pre Filing Requirements
- Credit Counseling Interview with
approved agency
- Tax Returns for previous two (2) years
- Current Pay Check Stubs for previous sixty (60) days
- Complete Petition Listing all financial information including all
creditors, all property and all income
- Meet all other eligibility requirements **
**
Please consult a bankruptcy attorney for
details on eligibility requirements
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