Nashville

Nashville Bankruptcy Attorneys

Representing Clients in Bankruptcy Court as They Seek a Fresh Start

Making ends meet isn’t easy, and one emergency or unexpected expense can easily put you in the red. When it seems like there’s never enough money to go around or you can’t answer your phone because of debt collection calls, it may be time to consider filing for bankruptcy. Whether your financial situation took a turn due to a layoff or medical bills sent you into a spiral of payday loans and massive interest payments, bankruptcy can offer a path forward and a fresh start.

At Tom Bible Law, our Nashville bankruptcy lawyers understand how easy it is to accumulate a large amount of debt that seems impossible to pay. Our firm is here to help you explore all of your options, including filing for bankruptcy. We can help you determine if you qualify for bankruptcy and which filing type is the best for your situation, and we offer new clients a free initial consultation to ensure our practice is a good fit. Call today to speak to a member of our legal team and take your first step.

What Do the Different Bankruptcy Chapters Mean?

There are six different types of bankruptcy filings: Chapter 7, Chapter 9, Chapter 11, Chapter 12, Chapter 13, and Chapter 15. Each one is named after the chapter of the bankruptcy code that outlines the eligibility requirements, process, and other guidelines for that bankruptcy type. Tom Bible Law helps those in Nashville and the surrounding area with consumer bankruptcy law and business bankruptcies. The most common bankruptcy filings for our clients include:

  • Chapter 7: Also known as the liquidation bankruptcy, this filing is common for those who have a lower-than-average income and need to liquidate most of their assets to get out of debt
  • Chapter 11: Chapter 11 is primarily a business bankruptcy filing and allows companies to continue normal business operations as they restructure their debts and pay off creditors
  • Chapter 12: This is a specialized bankruptcy filing that is only available for family farmers and family fishermen who get most of their income from farming or fishing operations
  • Chapter 13: In a Chapter 13 bankruptcy, the goal is to keep your assets and pay off creditors over time through a payment plan that generally takes 3 to 5 years to finish

Each of the bankruptcy options above has its own pros and cons, and it’s important to talk to an experienced Nashville bankruptcy attorney to find out which chapter applies to your situation and what you need to know about the process.

How Can Filing for Bankruptcy Help You?

Filing for bankruptcy isn’t an easy decision, but it’s one that can help you get your finances back on track, whether you’re an individual facing consumer debt or a business with more liabilities than assets. Here are some of the benefits of filing bankruptcy to be aware of:

  • An end to creditor harassment. Filing for bankruptcy gives you an immediate automatic stay on all of your debts and stops all debt collection communications. This stay means that creditors can’t take any negative actions against you, such as repossessing a vehicle or beginning the foreclosure process on your home. Creditors also won’t be able to garnish your wages.
  • Debt relief. The biggest benefit to filing for bankruptcy is that it can eliminate a large portion — and sometimes all — of your debt liabilities. For example, if you’re dealing with unsurmountable credit card debt, this could all be wiped out when you file a consumer bankruptcy, such as Chapter 7.
  • Improved mental and physical health. The stress and anxiety you feel when you don’t have enough money to make your debt payments can have real implications for your mental and physical health. Filing for bankruptcy can bring about an intense feeling of relief and give you the peace of mind and mental space you need to get yourself in a healthier place.
  • A fresh start. While filing for bankruptcy may not eliminate all of your debts — student loans and child support arrears are two examples of debts generally exempt from bankruptcy filings — many people are able to start over with a clean financial slate after bankruptcy. Once you get your discharge notice, you can start rebuilding your finances and taking steps to increase your credit score.

Filing for bankruptcy isn’t something to be done lightly, but in many cases, the benefits far outweigh the drawbacks. Find out how bankruptcy may be able to help you get your finances back on track and gain peace of mind when you talk with one of our experienced bankruptcy lawyers in Nashville.

Can You Keep Your Assets When You File for Bankruptcy?

It’s a common misconception that you lose all of your assets when you file for bankruptcy. While it’s true that you may have to sell some assets to pay off debts or make some other tough financial decisions depending on the type of bankruptcy filing, the state of Tennessee has rules for what property is exempt. For example, most of your personal property, such as clothing, pictures, or personal care items, is exempt.

Filers can also keep some qualifying pension plans and public benefits. Social Security payments are exempt from bankruptcy proceedings, as are unemployment benefits, workers’ compensation benefits, and some insurance benefits. If you were awarded money from a personal injury or wrongful death lawsuit, you may be able to keep some of that compensation even when you’re filing for bankruptcy.

Bankruptcy exemptions can get complicated, so it’s important to discuss your case with an experienced attorney. Tell your attorney which assets are most important for you to be able to keep, as this may change what chapter is best for you to file under.

What Are the Eligibility Requirements to File for Bankruptcy?

The eligibility requirements to be able to file bankruptcy vary depending on the chapter. For example, those wishing to file Chapter 7 bankruptcy must have a lower-than-average income for their state. Chapter 13 filers must be able to prove that they have the financial means to make the payments as required by the payment plan and still have enough left to pay their other bills and living expenses.

In addition to having a certain financial situation, some bankruptcy chapters have debt limits. The limit for a Chapter 13 bankruptcy is $2,750,000, and this includes both secured and unsecured debts. Secured debts are those where the lender has some type of collateral they can take, such as your house, if you default on payments. Unsecured debts are things like credit cards and medical bills.

Chapter 12 bankruptcy has extensive eligibility requirements, while Chapter 11 has almost none. Part of the conversation you’ll have with your bankruptcy attorney is determining which chapters you are eligible for and then which option has the most benefits and is the most cost-effective for your situation.

How Does Filing for Bankruptcy Work?

Filing for bankruptcy is a complicated process, and it’s not a fast one. It’s important to be prepared for a bankruptcy filing to take several months, and sometimes even years, depending on the type, before it’s finalized and the remaining debts are discharged. The basic steps of filing for bankruptcy are to complete any required credit counseling before you file, file the forms in the bankruptcy court, meet with creditors, and then follow the terms of the bankruptcy before it can be discharged.

The best bankruptcy lawyers have a thorough understanding of the process and will be able to explain what happens in a simple and easy to understand way so that you’re properly informed. If you have any questions at any point in the process, our attorneys can help.

Will Filing for Bankruptcy Hurt Your Credit?

There can be a lot of shame and stigma around filing for bankruptcy, but much of this comes from people who don’t understand the process or have never been in a financial situation where it’s difficult to see the light at the end of the tunnel. The truth is that filing for bankruptcy is one of the legal solutions to mounting debt and financial relief.

However, it’s always a good idea to understand the effects of any financial decisions, and this includes filing for bankruptcy. It’s true that bankruptcies stay on your credit report for several years (7 years for Chapter 13 and 10 years for Chapter 7, in most cases), and they can have a negative effect on your credit score. But if you’re like most people who are seriously considering bankruptcy as an option, your credit is likely already suffering.

Getting behind on your payments and maxing out credit cards to pay your monthly bills has probably taken a toll on your credit, and there may even be a repossession or two on your credit report. All of these issues can result in a credit score that’s already in the poor range and isn’t likely to be majorly affected by a bankruptcy filing.

If your credit score is still in the fair to good range, you are likely to see a bigger hit. But when your debts are discharged through the bankruptcy, it can be easier to rebuild your credit score over time through responsible financial management. If you’re concerned about the impact on your credit or you’re planning on a purchase, such as a house, in the near future that could be impacted by a bankruptcy filing, talk to an attorney before moving forward.

At Tom Bible Law, our attorneys offer compassionate and empathetic representation for bankruptcy filings. The team at our law firm understands how easy it is to get into an overwhelming financial situation, and we’ve helped thousands of clients in Nashville and the surrounding area get a fresh start. Call our office at 423-874-6628 to schedule your free consultation today.