Bankruptcy is a scary word for many Tennessee residents. It can imply a loss of control over one’s debts or a complete collapse of one’s financial health. It can be a long process that not every person who qualifies for it will want to endure. It can require a person to relinquish control over his money and trust in a system that should ultimately render him on solid financial footing.
However, despite the intimidating stigma that surrounds bankruptcy, it can be a very useful tool for those who are struggling with debt. In particular, the Chapter 7 bankruptcy process can give debtors options for alleviating their financial burdens and starting their lives over without significant monetary hurdles to overcome.
During a Chapter 7 bankruptcy a debtor must go through liquidation. Liquidation involves the amassing of a debtor’s assets and then the subsequent selling off of those assets. Once a debtor’s assets are sold the proceeds of the liquidation are used to pay of the debtor’s creditors and satisfy his outstanding loans.
Chapter 7 liquidation is not as all-encompassing as it may initially appear. Individuals who submit to the Chapter 7 bankruptcy process are allowed to protect certain items of property from the liquidation so that they might have something with which to start their lives over once the process is complete. The law firm of Richard Banks & Associates can help individuals recognize what items of property are and are not eligible for liquidation during a Chapter 7 process.
Bankruptcy is an effective way to stop creditor harassment and provide a person with a fresh financial start. The attorneys of Richard Banks & Associates can help every step of the way. To learn more about Chapter 7 bankruptcy and liquidation, contact our firm.