Chapter 7 bankruptcy allows people to liquidate their assets and use the proceeds to pay their creditors. The typical candidate for Chapter 7 is an individual that earns very little, has little to no equity in a home, and has very few assets and a considerable debt load. Basically, Chapter 7 Bankruptcy in Kingsport, TN gives people that fall into this group the opportunity to start over. Although it may sound simple, it is not. The process is complex, and it is always a good idea to hire a knowledgeable bankruptcy attorney in Kingsport, TN or South Jordan, TN to guide you through the process and explain the legal aspects and consequences of bankruptcy.
How chapter 7 Works
Typically, once a person has decided to declare Chapter 7 bankruptcy, they must attend a credit counselling course. They are also obliged to attend a course on financial management once the process is completed. If you meet all the stipulations, including passing the means test and collecting all the supporting documentation demanded by the court, you can file. Once you have filed, a trustee will arrange to dispose of all non-exempt assets. Kingsport, TN law provides protection of certain property from creditors. Your bankruptcy attorney in South Jordan, TN will provide you with guidance on what is exempt and what isn’t.
There are also debts that cannot be discharged after filing for Chapter 7, including child support; alimony; any student loans; and certain tax obligations. The bankruptcy judge has the right to declare other debts as non-dischargeable; these may include debt incurred by fraud or breach of trust, as well as cash loans and credit purchases in excess of $1150 that were made within 60 days of the bankruptcy filing date. In Kingsport, TN, you might be able to keep secured debt, such as your home or vehicle, if you reaffirm the debt. If you do this, you are obliged to make the debt current and continue to pay as usual for at least eight years. Contact Dean Greer and Associates in Kingsport, TN for more information.
