423-874-6628Murfreesboro Bankruptcy Attorneys
Helping Clients Break Free From Overwhelming Debt
If you’re dealing with insurmountable debt, there is a way out. Bankruptcy is an option that helps you get rid of overwhelming debt and start rebuilding your finances, and depending on your filing type, you may even be able to keep your assets.
The Murfreesboro bankruptcy lawyers at Tom Bible Law are here to help you understand the bankruptcy process and how it may be able to help you. Call our office today to learn more at a free consultation.
What Type of Bankruptcy Should You File?
The type of bankruptcy that’s best for your situation depends on the extent of your financial problems and your goals. For example, if you don’t have a lot of secured debt or assets that you want to keep, a Chapter 7 bankruptcy can help you liquidate your assets quickly so you can start fresh. A Chapter 13 bankruptcy lets those who have the financial means to do so pay off creditors over time and keep most of their assets.
There are also options for businesses, such as Chapter 11 bankruptcy, and family farmers and fishermen, such as Chapter 12 bankruptcy. The best way to find out which bankruptcy option is the right one for you is to discuss your situation with an experienced bankruptcy attorney who can help you understand the qualifying criteria, benefits, and potential challenges.
Will You Be Able to Keep Your Assets?
Whether or not you can keep all or most of your assets depends on the type of bankruptcy you file, but there are always some assets that are exempt. For example, the state of Tennessee allows bankruptcy filers to keep personal items like clothing, and there is an allowance to exempt up to $10,000 in personal property, which can help you keep things like a commuter vehicle or sentimental jewelry. An attorney can talk with you about what assets you have and what you want to keep and determine which bankruptcy option best fits your needs.
Do You Qualify for Bankruptcy?
Some bankruptcy chapters have very specific eligibility requirements. For example, those wishing to file Chapter 7 bankruptcy must either have an income that is lower than the state median or pass a means test. The means test compares your income to your bills to determine if you have enough discretionary income to reasonably pay off your creditors without needing to file bankruptcy. Chapter 13, on the other hand, requires filers to show they have sufficient income to make payments to creditors over 3 to 5 years after their debt has been restructured. The legal team at Tom Bible Law can help you determine if you qualify to file bankruptcy and, if so, under which option.
What Does Bankruptcy Mean for Your Financial Future?
Filing for bankruptcy can help you get a fresh financial start, but there are some potential drawbacks to consider. For example, having a bankruptcy on your credit report can lower your credit score, which can make it harder to qualify for loans or other financial tools. A bankruptcy also stays on your credit report for several years after you file, which can have a long-term impact on things like what interest rates and payment terms you get years later.
How Do You Start the Process?
The first step in the process of filing for bankruptcy is to speak to a bankruptcy lawyer. Tom Bible Law is a law firm serving Murfreesboro, TN, and our attorneys will talk with you about what bankruptcy means and whether it’s an option for your situation. Depending on the circumstances, we may also be able to suggest alternatives, such as negotiating with creditors or consolidating debt to make it more manageable. Our firm offers new clients a free initial consultation to help you get started. Call our office at 423-874-6628 today.