Tennessee Bankruptcy Laws should be known by every resident of the state of Tennessee.If the time comes when you constantly receive phone calls from credit companies, it’s time to consider debt alternative options. When you have exhausted all options and you still haven’t found a solution to the financial crisis you’re facing, then this is the time to consider bankruptcy. Tennessee bankruptcy laws are quite complex and the decision to avail of this privilege should not be taken lightly.
To help you decide if bankruptcy protection is really the right choice, consult a lawyer. The complexity of the rules and provisions will have your head spinning and the mountain of paperwork required will need the expertise of a lawyer. A lawyer licensed to practice in the state of Tennessee and familiar with all the state-specific laws will ensure an approval of the bankruptcy application provided that you meet all the criteria required set by the laws.
The foremost issue to address before proceeding with this rigorous task is to select the appropriate bankruptcy program. There are two options available for individuals, married couples, and head of households: Chapter 7 and Chapter 13. It should also be important to know that for every bankruptcy case filed to the court, a randomly chosen trustee is appointed to oversee the bankruptcy proceedings.
In the case of Chapter 7, the trustee is in charge of liquidating the debtor’s dischargeable credits through the sales of the non-exempt assets. The proceeds of the sales will be paid off to creditors and the remaining debts will be discharged as deemed necessary by the trustee. Although it may sound so easy to avail of Chapter 7, it is not. The eligibility criteria are complicated so if you are denied Chapter 7, the bankruptcy court recommends Chapter 13.
As much as you look forward to start anew and start with a clean slate, Chapter 13 does not offer that option to debtors. Instead the debtor is required by the bankruptcy courts to present a repayment plan within weeks of submitting the requirements. This plan will outline the details on how the debtor will pay all his debts. Should the court approve the repayment plan, the trustee will again oversee the implementation of the plan. The debtor will remit his monthly payments to the trustee who in turn, will distribute the amount to the various creditors based on the priority list determined by the bankruptcy court of Tennessee. During the execution of this plan, creditors are ordered to prevent property foreclosure and repossession unless the debtor cannot fulfill the monthly payments.
The only consolation when it comes to the liquidation of assets is the fact that both federal and Tennessee bankruptcy laws provided for exemptions. You can choose either of the two. For the state exemptions, here’s a list:
• The debtor’s home worth $5,000, increases to $7,500 for joint owners, and $25,000 if a dependent or minor in the house;
• 75% of earned, but unpaid wages;
• Personal property amounting to $4,000;
• Bible, books, clothing, portraits, pictures, and any personal belonging; and
• Health benefits, public benefits, and other benefits.
Improve your chances of bankruptcy approval, be meticulous and make sure to seek your lawyer’s advice before you make any more.