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Tennessee debt after Chapter 7 bankruptcy

When Tennesseans get in a mountain of debt, they have several ways to address it. One is filing for a Chapter 7 bankruptcy. This form of bankruptcy can be an effective way to gain a fresh financial start. But, as is so often the case in life, there are some exceptions. To learn more about what kinds of debt Chapter 7 cannot erase, keep reading.

One key form of debt that is resistant to Chapter 7 is student loans. In many instances, Tennesseans with big student loans cannot make them disappear through a Chapter 7 bankruptcy. Sometimes though, they can.

The answer depends on whether paying off the loan would create an undue hardship. For bankruptcy circumstances, an undue hardship involves evaluating three factors: the person's income, for how long the person will struggle to make loan payments and the extent to which the person has made a good-faith effort to repay the loan.

Whereas student loans are resistant to Chapter 7, some debts are immune. These include debts from willful and malicious acts, from certain frauds and from larceny, embezzlement or breach of fiduciary duty.

A variety of other debts will generally not be dischargeable too. These include recent taxes, court fees, alimony and child support, debts owed to certain pension plans and debts flowing from an award in personal injury cases.

Filing for bankruptcy can be an excellent choice for Tennesseans seeking a new beginning. But, the process has its trips and traps for the uninitiated. To reduce the chance of getting bit by an unwelcome surprise, Tennesseans may benefit from discussing their situation with an experienced bankruptcy attorney.

Source:, "Debts that Remain After a Chapter 7 Discharge," accessed on Nov. 15, 2015

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Mark T. Young & Associates
2895 Northpoint Blvd.
Hixson, TN 37343

Toll Free: 888-376-0282
Phone: 423-933-1606
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