One of the first questions asked by Tennesseans contemplating filing a bankruptcy petition is, "What happens to my house?" The answer depends on which chapter the Bankruptcy Code is used to seek relief and on the debtor's personal financial situation.
One of the most important questions that must be answered when a resident consults an attorney about filing a bankruptcy petition is what exemptions should be used. Both state law and federal law permit debtors to declare certain assets exempt from creditors' claims in a bankruptcy proceeding, but the two lists are not identical. Moreover, a debtor must choose between a federal exemption and the state exemption for particular assets.
One of the most basic services our law office offers Bradley County, Tennessee, residents is helping a debtor fill our his or her bankruptcy forms correctly. Indeed, bankruptcy clients have the right to expect that their attorneys will make sure that their official forms will be accurate and complete. If they are not, it can land the debtor in to a lot of trouble and even keep them from being able to get debt relief.
At our law office, we believe that our clients deserve the opportunity to explore all options for resolving their debt should they run into financial trouble. While we do not hesitate to recommend bankruptcy to a southeastern Tennessee resident when that really is their best financial option, we also will not hesitate to let families know when they should consider trying another approach.
As this blog has discussed previously, residents of Bradley County and other parts of southeastern Tennessee can avail themselves of the country's bankruptcy system should they find themselves in trouble financially.
After a Bradley County, Tennessee resident files for a bankruptcy, he or she may get something in the mail called a reaffirmation agreement. These agreements are particularly common in Chapter 7 bankruptcies with respect to car loans and similar types of debt, although a debtor might receive one for a mortgage or other type of debt now.
Even though the stigma surrounding bankruptcy filing seems to have diminished as time goes on, there is still a lingering impression that a Tennessee resident who files for bankruptcy does so because he or she simply spent too much money either through carelessness, or, in the worst case, with no intention of ever paying the money back.
Recent statistics suggest that the Affordable Care Act, commonly known as "Obamacare," may have helped some families in Tennessee and across the country avoid bankruptcy.
Personal bankruptcy options include Chapter 7 liquidation bankruptcy or Chapter 11 reorganization bankruptcy. Depending on the unique circumstances and goals of the filing party, one option may be better than the other. Chapter 7 personal bankruptcy allows the filing party to liquidate assets that are not exempted from the process to repay creditors. Chapter 11 bankruptcy allows the filing party to reorganize their debts to repay over a manageable period of time.
Bankruptcy can be a challenging subject, but it does not have to be since it is designed to help struggling families and individuals. No matter a person's situation or reason for filing, bankruptcy can be a real and workable solution for many.