Filing For Chapter 13 In Tennessee

Filing for bankruptcy in Tennessee starts by filing a bankruptcy petition with the court. If you have chosen to file under Chapter 13, you will need to list all your assets, income, debts and expenses in the petition. You will also need to file a repayment plan with the court. Once you file bankruptcy, there is an automatic stay that prevents your creditors from trying to collect a debt against you. The court will send a notice to all your creditors named in your Chapter 13 bankruptcy petition. The court will also provide you and your creditors with a notice of commencement of the case which contains all the information regarding filing creditor’s claims and/or objections from your creditors and the creditors’ meeting. A trustee will be assigned to your case by the court. The federal bankruptcy laws require that you speak to an approved credit counselor twice before the court will discharge your bankruptcy. The credit counselor will sign a document allowing the court to discharge your bankruptcy. You are also required to take a financial management court approved by the bankruptcy trustee. You should hire a Tennessee bankruptcy attorney to represent you in court.

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Difference Between Chapter 7 and Chapter 13

The differences between filing for bankruptcy in Tennessee under Chapter 7 vs. Chapter 13 are:

Chapter 7 is a complete liquidation of your assets in order to pay off your debts. All debts are wiped out in a Chapter 7, except statutory debts, such as child support, spousal support, income taxes and student loans. You can start over fresh again with a Chapter 7.
You can keep your home, car and some personal assets in a Chapter 7 if they fall within the federal or state statutory exemptions or homestead exemptions. Your attorney can explain how the bankruptcy exemptions work.
Either an individual or a business may file for Chapter 7 protection.
Chapter 13 is for individuals who want to keep their assets and have the ability to repay their creditors by negotiating reduced debt with each of them, including their mortgage lender.
In a Chapter 13, you must enter into a court-approved repayment plan over a 3-5 year period of time to repay your debts.
Chapter 13 requires that you must also complete creditor counseling and a financial management course approved by the trustee. The course can be purchased on line.
In a Chapter 13, if you make all your payments in a timely manner, at the end of your plan, any unsecured debt can be discharged by the court.

Eligibility for Chapter 13 Bankruptcy

In order to qualify for Chapter 13, you must meet the following guidelines:

Be employed or have a steady source of income to repay your creditors.
Have enough disposable income for living expenses after paying your creditors their payments each month.
Must have less than $336,900 in unsecured debts and less than $1,010,650 in secured debts.

Bankruptcy Attorney Assistance

Filing for bankruptcy in Tennessee is a serious matter. Before you make a decision to file for Chapter 13 bankruptcy, you should speak with a bankruptcy attorney to find out all your options. The attorney can prepare the bankruptcy petition and repayment plan, and represent you in court.

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