Chattanooga Chapter 7 Bankruptcy Lawyers

Whether it’s due to unpaid credit cards or outstanding medical bills, the consequences of excessive debt can make life miserable. Interest and monthly fees can pile up fast. Creditors may harass you and leave you feeling overwhelmed. 

If you’re struggling with debt, it’s important to know you have options. Chapter 7 bankruptcy presents you with a legal pathway to wipe your financial slate clean by discharging your unsecured debt and stopping all debt collection activities. 

The attorneys at Tom Bible Law can provide you with experienced legal advice. With three offices spread out across Tennessee, we offer our Chapter 7 filing services to clients throughout Tennessee and North Georgia. 

Contact us online or call (423) 690-7712 to schedule a free consultation with one of our Chattanooga Chapter 7 bankruptcy attorneys.

What Can Chapter 7 Bankruptcy Do for You?

Many people think of Chapter 7 bankruptcy only as a form of debt liquidation, because this process involves a bankruptcy trustee who uses the debtor’s assets to pay off creditors. This understanding is somewhat misleading. Although most people who file for Chapter 7 are drowning in unsecured debt, they often have few qualifying assets to seize (and sometimes none). Therefore, they have little to lose in bankruptcy resolution. 

Unsecured debt is a type of debt that is not backed by anything. This means that if you don’t pay it, the creditor cannot take assets from you to sell and pay what you owe. Unsecured debts are things like credit card balances, payday loans, and medical debt. 

However, not everyone can qualify for Chapter 7 bankruptcy. To be eligible, you must first pass a means test, which ensures you do not have the income necessary to reasonably pay your debts. The means test is a feature of the 2005 changes to the U.S. Bankruptcy Code, implemented to prevent people with the ability to pay their debts from getting them discharged (the Bankruptcy Abuse Prevention and Consumer Protection Act). For those who do not qualify for Chapter 7, Chapter 13 bankruptcy is an alternative. 

Is Chapter 7 Bankruptcy Right for You?

Not everyone knows about the benefits of filing for Chapter 7 bankruptcy for individuals and small business owners. Exploring these benefits when you are struggling with debt may help you make the decision that best matches your financial circumstances. Finding out how Chapter 7 bankruptcy works may also help. 

Chapter 7 bankruptcy works by turning all financial assets owned by individuals and small businesses into money that can be divided up amongst creditors. The creditors accept this money as a replacement for the debts that were owed to them.

This process is referred to as the liquidation of all property and other financial assets into full debt repayment. Small businesses often file for Chapter 7 bankruptcy when they are unable to gain access to profits under Chapter 11 bankruptcy. What happens after Chapter 7 bankruptcy is the business closes down while someone else takes over to ensure creditors are paid.

Chapter 7 bankruptcy can provide a fresh start for individuals struggling with overwhelming debt. If you are facing creditor harassment, wage garnishment, or repossession, filing for Chapter 7 bankruptcy may be a viable solution to regain financial stability.

Benefits of Chapter 7 bankruptcy include:

• No repossession
• Discharge of unsecured debts such as credit card debt and medical bills
• Protection from creditor actions, including lawsuits and collection calls
• Potential to keep certain assets through exemptions
• Opportunity for a clean financial slate and a fresh start
• Faster processing
• Lower fees

The benefit of filing for Chapter 7 bankruptcy is escaping debt without having to worry about facing legal problems from creditors. Chapter 7 bankruptcy blocks creditors from taking legal actions like repossessing property or collecting money from your account. Certain types of property you own will become exempt from being collected.

Chapter 7 bankruptcy takes about four to six months compared to years under other types of bankruptcy. Lower fees for Chapter 7 bankruptcy range from $15 to $245 depending on different factors of your case.

Our experienced Chattanooga Chapter 7 bankruptcy lawyers can assess your financial situation and determine if Chapter 7 bankruptcy is the right option for you. Contact us to schedule a consultation and take the first step towards a debt-free future.

How Does Someone File For Chapter 7 Bankruptcy?

You begin by talking to our owner, Tom Bible.  Over the last 20 years, Tom’s become the Chattanooga area’s largest bankruptcy filer, so he’s seen everything – and I mean EVERYTHING.  He assesses your situation with your assistance, and then gives guidance and helps determine what type of bankruptcy you should be going for.  

Once the assessment is done, we help you file the appropriate paperwork.  Then, you go into what is referred to as a “meeting of creditors.” You are appointed a trustee by the court.  The trustee is sort of like an attorney who represents your unsecured creditors. This is the part that usually has people in knots – “Is he going to judge me?”  “Is he going to humiliate me and my family?” “Is he going to grill me for hours on end?” Rest assured that none of these things will happen to you. The court simply doesn’t want you to just get a free pass and not get your filing vetted by anybody, so the trustee is really just the court-appointed gatekeeper.  

The trustee is really just going to be helping you look for undervalued assets, or assets you might have inadvertently left off of your petition:  i.e. a Ferrari in the basement, or a beach house in Florida you forgot to tell us all about. Sometimes our clients have situations that they just didn’t know about, such as the potential to sue over some debt you’ve accrued, or an inheritance.  They will merely ask questions, and chat through patterns of behavior: for example, why you have all this debt will help them discover potential solutions you haven’t thought of. Usually these meetings with the trustee are less than an hour and not painful – it’s just a matter of routine questions they have to ask.  

Chapter 7 Bankruptcy Exemptions

Now, what you might NOT know is that when you file chapter 7 bankruptcy, you can protect up to $10k of personal property.  This will include things like clothes, jewelry, furniture, etc. Also there are certain real property exemptions, and these vary by age, how many in household – but the range is anywhere from $5-25k.  Keep in mind that you have double the exemptions when you file as a married couple. 

Usually, the most common interaction with the trustee is over your house value. If they add up the mortgage, and add the exemption – assume 6% cost of sale – add all 3 up – if the value of the house is MORE than that, then the trustee can negotiate with them.  So going a little deeper, if you had $100k tax-appraised house with a 50k mortgage; the exemption is $10k – 6% cost of sale – you’re at $66k. There’s a $44k “swing” that trustee wants to try and get. This can all be negotiated, and THAT’S where I come in. Understand that trustees get paid on commission if they can find assets that go above their exemptions, so this is why they have a vested interest in thoroughly understanding your financial state.  

Work With A Skilled Chapter 7 Attorney From Law Office of W. Thomas Bible, Jr.

Attorneys play a pivotal role in this bankruptcy process. Many people file for bankruptcy, but not everyone is successful in having their debts discharged by the court. Chapter 7 is a complex process, and a lot could go wrong. Having experienced legal counsel on your side can help ensure everything goes smoothly and that you get the most benefit possible.

Contact Our Chattanooga Chapter 7 Bankruptcy Attorneys

Tom Bible Law can advise you on how best to position yourself for Chapter 7 debt relief. We can help you determine your eligibility, protect your assets, ensure compliance with the state and federal guidelines that regulate bankruptcy, guide you through each stage of bankruptcy, and advise you on rebuilding credit once the process is finished. Our attorneys are committed to helping you stop creditors, garnishments, and repossessions, relieve your debts and start fresh.

To get in touch with our Chapter 7 bankruptcy lawyers in Chattanooga, Tullahoma via online form or call (423) 690-7712.