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Cleveland Tennessee Bankruptcy Law Blog

Lien stripping may help you keep your house

Your income used to be enough to live on, but lately, it seems as if you have more bills than you do paycheck. The idea of declaring bankruptcy may seem appealing, but you love your house, and losing it is just not an option. Filing Chapter 13 bankruptcy allows you to catch up on your bills through a repayment plan that focuses on helping you keep your assets such as your home and your car.

But what about the second mortgage on your home? If you do not make enough to include that debt in the repayment plan, will it result in the repossession of your house? The answer is probably no.

The different ways Chapter 13 bankruptcy can help consumers

Chapter 13 bankruptcy is important for struggling consumers, homeowners and others to understand. The importance of Chapter 13 bankruptcy protections to consumers cannot be overstated if they wish to enjoy debt relief but want to retain their assets, including a family home in some circumstances.

Chapter 13 bankruptcy protection can help those struggling with overwhelming debt and, in some circumstances, those struggling to keep their home. The Chapter 13 bankruptcy process allows the filing party to reorganize their debt and create a repayment plan that works for them and their situation. It is best for those who have a reliable source of income to repay their debts. The length of the repayment plan depends on the filing party's average income for a period leading up to the bankruptcy and if it falls below the state's median income, the repayment plan will generally be 5 years and if above, the repayment plan will generally be 3 years.

Bankruptcies up and continue to be high in Tennessee

Bankruptcy relief is an important legal protection for struggling consumers to be familiar with. While there was a year-over-year drop in consumer bankruptcy filings, the number of consumers seeking bankruptcy protection during August increased. Commercial bankruptcy filings also rose year-over-year and in the month of August. One expert noted that recent changes in the law have provided better access to bankruptcy protection for struggling small businesses, family farmers and veterans.

Tennessee is second in the nation for per capita bankruptcy filings. Bankruptcy protections can serve as an important resource for struggling consumers seeking a fresh financial start in Tennessee and elsewhere. There are two different types of personal bankruptcy protections struggling consumers may have access to. Chapter 7 bankruptcy protection provides an option for a struggling consumer to liquidate non-exempt assets to repay creditors and enjoy debt relief that way.

How to qualify for Chapter 7 bankruptcy

This blog recently discussed the value of Chapter 7 bankruptcy as an option for struggling consumers and others wishing to enjoy a fresh financial start. Those considering Chapter 7 personal bankruptcy protection may wonder how they can qualify for it.

Chapter 7 bankruptcy is a liquidation bankruptcy process that allows the filing party to liquidate non-exempt assets to repay creditors and obtain debt relief. Certain assets and categories of assets, subject to limits, are exempted from the process. As is true of any bankruptcy process, an automatic stay goes into effect that protects the filing party from creditor collection actions during the bankruptcy process.

What does the bankruptcy trustee do during bankruptcy?

Bankruptcy trustees are an important part of the bankruptcy process which is why filing parties should ensure all their questions about the role of the bankruptcy trustee are answered. Bankruptcy trustees are involved in both the Chapter 7 and Chapter 13 bankruptcy processes, though their roles may differ depending on the type of bankruptcy protection the filing party has filed for.

In a Chapter 7 liquidation bankruptcy, the role and responsibilities of the bankruptcy trustee include being tasked with collecting all the filing party's property; selling the bankruptcy estate's property; challenging creditor claims when necessary; distributing proceeds from the bankruptcy liquidation process to the creditors; and objecting to a bankruptcy discharge at the end of the bankruptcy process if a valid reason to challenge the discharge exists.

Tennessee bankruptcy filings second highest in nation

Bankruptcy is an important resource for those struggling with debt to consider. Bankruptcy rates were up last month nationally and also increased 3% when compared to the same month last year. The total number of bankruptcies last month nationally was 64,283. Both personal and consumer bankruptcy rates increased. Tennessee had the second highest rate of bankruptcy filings in the country. The average bankruptcy rate per capita nationally last month was 2.5 per 10,000. The rate in Tennessee was over twice that at 5.39.

Bankruptcy options are available for individuals and businesses wishing to wipe out debt and enjoy a fresh financial start. Both liquidation and reorganization bankruptcy options are available for individuals and businesses. There are two primary types of personal bankruptcy protection that individual consumers can file for. Each offers the benefit of a stay of creditor collection actions while the bankruptcy process progresses and a debt discharge at the end of the process.

Avoid these 5 mistakes if you file for bankruptcy protection

If you want to get out from under your debt burden, filing for bankruptcy protection is a wise move. You want the process to go smoothly with no problems to impede success.

To help you achieve that goal, here are five common mistakes to avoid.

Bankruptcy can help with medical debt challenges

Medical debt can be daunting and can continue to pile up which is why it is helpful for anyone faced with medical debt to be familiar with personal bankruptcy protections. Personal bankruptcy protections can provide relief from medical debt and other types of debt and help struggling consumers move on with their lives debt free.

Medical debt is considered unsecured debt which means it is a type of debt that is not secured by property or another asset. Unsecured debt receives treatment most favorable to the filing party during the personal bankruptcy process. There are two types of personal bankruptcy protection and either of the two types can provide relief from overwhelming debt, including medical debt and other debt, the filing party may have accumulated.

How Chapter 11 reorganization bankruptcy can help businesses

Chapter 11 bankruptcy is an important resource for businesses that are struggling but wish to remain in business. Chapter 11 bankruptcy is a reorganization bankruptcy option like Chapter 13 bankruptcy is a reorganization personal bankruptcy option.

Chapter 11 bankruptcy can provide benefits to a struggling business including allowing the business to remain operational during the process and to also provide time and resources for the company to return to the path of profitability. Businesses struggling with overwhelming debt can benefit from the automatic stay that goes into effect once the bankruptcy filing is made, allowing them to seek other sources of capital, and struggling business owners can also benefit from familiarity with the business bankruptcy process.

Will I lose my jewelry in bankruptcy?

In a recent episode of a popular television show, a wealthy couple has to file for bankruptcy and faces the loss of their home, car and even the wife's wedding ring. The question comes up for parties considering personal bankruptcy protection for debt relief how their property will be handled during the bankruptcy process.

There are two primary types of personal bankruptcy including Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 personal bankruptcy protection is more popular than Chapter 13 bankruptcy protection for several reasons but that does not mean it is always the best option. Chapter 13 bankruptcy is a reorganization type bankruptcy that is an option for filing parties with a reliable source of income to consider. Chapter 7 bankruptcy is typically quicker and is usually resolved in approximately 4 months and leaves the filing party with the discharge of certain debts they will not have to repay.