Debt Solutions FAQ
+ What can bankruptcy do for me?
Bankruptcy may make it possible for you to get rid of legal obligation to pay most or all of your debts, stop a foreclosure on your home, prevent repossession of your car, stop wage garnishment or other collection harassments.
+ Which Bankruptcy Chapter should I file?
Determining whether Chapter 7 or Chapter 13 bankruptcy will be more beneficial to you depends on several factors. Most individuals file Chapter 7 or Chapter 13 Bankruptcy. The chapter you file will depend on your particular needs and financial qualifications.
- A Chapter 7 bankruptcy can quickly discharge certain types of debt like credit card balances, medical bills, and personal loans. You may have to give up some of your property. Your income must be low enough to pass the "means test" to qualify for Chapter 7 bankruptcy.
- A Chapter 13 bankruptcy may be more beneficial to you if you are looking to bring your house or car loan current. If you need to pay off nondischargeable debt, such as child support, spousal support or past-due income tax, then Chapter 13 is a better choice for your. You must have enough income to fund a three to five year repayment plan and your total debt cannot exceed maximum limits. You may keep all of your property. However, you must pay for nonexempt property in the repayment plan.
+ Do I have to have a minimum amount of debt to file for bankruptcy?
You do not have to owe a certain amount of debt or be insolvent to file for bankruptcy. However, filing for bankruptcy can result in long term consequences such as your credit standing. When you have minimal debt and file for bankruptcy, the courts frown upon this.
+ What property can I keep in a Bankruptcy?
In Tennessee, in a Chapter 7 case, you can keep all your property, which the law says is “exempt” from the claims of creditors.
+ If I am married, can I file by myself?
Yes, but your spouse will still be liable for any joint debts.