call for a consultation
call for a consultation
When your days and nights become consumed by worry and anxiety over your financial struggles, Chapter 7 bankruptcy protection may be the best solution. At Mark T. Young & Associates, our legal team understands the substantial emotional and financial hardships associated with considerable debt. We are committed to helping individuals achieve a debt-free life.
Both individuals and businesses may find themselves with more debts than they can pay when due. In such cases, filing for bankruptcy may provide a solution to what seems like an insurmountable problem. Bankruptcy provides two basic forms of relief: (1) liquidation and (2) rehabilitation, also known as reorganization.
Most bankruptcies filed in the United States involve liquidation, which is governed by Chapter 7 of the Bankruptcy Code. An attorney at Mark T. Young & Associates in Hixson, TN, can advise individuals and businesses about whether Chapter 7 is the right choice for them. The bankruptcy lawyer’s goals are to help Chapter 7 debtors make a fresh start and ensure that creditors are paid.
Under Chapter 7 bankruptcy, which is also called liquidation, you may be able to discharge all of your unsecured debts, including:
If your driver’s license was revoked because you had an accident and did not have insurance, filing Chapter 7 will allow you to get your license back. The bankruptcy process provides immediate protection with the automatic stay, which stops:
Additionally, the majority of people who file for Chapter 7 are able to keep most of their assets, including their homes and household items. Once the bankruptcy petition is filed, the protection is immediate and your creditors will be notified in writing.
Attorney Mark T. Young has more than 30 years of experience preparing and filing petitions. His extensive experience enables him to evaluate your situation from every angle to determine the best course of action. As a dedicated bankruptcy advocate, he takes time to get to know each client’s needs and concerns, and then tailors his representation accordingly.
Do not lose another night’s sleep due to creditor harassment, overwhelming debt and other concerns. Our law firm can guide you through the bankruptcy protection process and help you get a fresh financial start.
At the Tennessee law office of Mark T. Young & Associates, we prepare and file Chapter 7 bankruptcy petitions for individuals throughout Tennessee and North Georgia. Our dedication and attention to detail enable us to file petitions effectively and efficiently. We are committed to helping individuals achieve debt relief.
Attorney Mark T. Young has more than 30 years of experience preparing and filing Chapter 7 petitions. His extensive experience and dedication to helping individuals live a debt-free life is demonstrated in the fact that he is a specialist in Consumer Bankruptcy lawyer.
In a Chapter 7 liquidation case, the debtor must relinquish certain property to the bankruptcy trustee so that he or she can sell the property and use the proceeds to pay off debts. Property of the bankruptcy estate is broadly defined in the Bankruptcy Code. The bankruptcy estate is technically the legal owner of all of the debtor’s property and consists of all legal and equitable interests that the debtor has in property at the initiation of the bankruptcy case. Income that the debtor earns after the date of the petition is not included in the bankruptcy estate. Debtors, whether they are businesses or individuals, are often justifiably concerned about what property they will be allowed to keep and what they must give up. A bankruptcy lawyer at Mark T. Young & Associates in Hixson, Tennessee, can answer these and other questions, allay fears and keep the process moving forward as painlessly as possible.
Items that the debtor usually must forfeit include:
A debtor must file a schedule of exempt property with the court. Exempt property is property that the debtor can protect from liquidation. The Bankruptcy Code allows each state to adopt its own exemption laws, which the debtor can select instead of the federal exemptions. It is important to consult with an attorney who can explain the exemptions available under your state’s laws and how they compare to the available federal exemptions.
Exempt property typically includes:
At the Tennessee law office of Mark T. Young & Associates, we prepare and file Chapter 7 bankruptcy petitions for individuals throughout Southeast Tennessee and North Georgia. Our dedication and attention to detail enable us to file petitions effectively and efficiently. We are committed to helping individuals achieve debt relief.
Attorney Mark T. Young has more than 30 years of experience preparing and filing Chapter 7 petitions. His extensive experience and dedication to helping individuals live a debt-free life is demonstrated in the fact that he is a specialist in Consumer Bankruptcy lawyer.
In April of 2005, President George W. Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), which instituted substantial changes to the Bankruptcy Code. Most provisions of BAPCPA became effective in October 2005. In an effort to exclude from Chapter 7 relief those debtors deemed to have the ability to pay at least some of the debts that would otherwise be discharged in Chapter 7, BAPCPA tightened the eligibility requirements for Chapter 7 and broadened the court’s power to dismiss Chapter 7 petitions for “abuse.” If you are considering filing for Chapter 7 bankruptcy and have questions about whether you will qualify, contact Mark T. Young & Associates in Hixson, Tennessee, today to schedule a consultation with a bankruptcy lawyer.
One of the most significant aspects of the new bankruptcy laws is the means test for individuals with primarily consumer debts who wish to file for Chapter 7. Under the Bankruptcy Code, a consumer debt is “primarily for a personal, family, or household purpose.” If the debtor is above the threshold established by the means test, his or her Chapter 7 petition may be dismissed, or the case could be converted to a filing under Chapters 11 or 13 if the debtor consents.
If the debtor’s current monthly income is less than the state median, the debtor automatically qualifies for Chapter 7. If the debtor’s current monthly income is more than the state median income, the means test will be applied to determine if filing for Chapter 7 is presumptively abusive. This step is a bit tricky. If the debtor’s projected disposable income, which is monthly income minus certain allowable expenses, over the next five years is less than $6,000 ($100/month), you are eligible to file under Chapter 7. However, if the debtor’s current monthly income minus the allowable expenses and multiplied by 60 (the number of months for the next five years) is more than the lesser of (1) 25 percent of the debtor’s non-priority unsecured claims in the case or $6,000, whichever is greater; or (2) $10,000, the court presumes that abuse exists. If this is the case, the debtor will not be allowed to file for Chapter 7 unless he or she can show special circumstances, such as a serious medical condition or being on active duty in the U.S. military, to the extent such special circumstances that justify additional expenses or adjustments of current monthly income for which there is no reasonable alternative.”
BAPCPA includes a number of additional requirements for a debtor seeking to file under Chapter 7. Individual debtors are now required to obtain an individual or group briefing from an approved nonprofit budget and credit counseling agency within 180 days of filing for bankruptcy. This briefing must, at a minimum, outline opportunities for available credit counseling and assist the debtor in performing a budget analysis. Another critical requirement is that prior to receiving a discharge, a Chapter 7 debtor must complete a personal financial management course. The Bankruptcy Code requires that debtors filing under either Chapter 7 or Chapter 13 provide a copy of their most recent tax return to the trustee before the meeting of creditors. The debtor must also provide a copy the tax return to any creditor that requests one. Finally, before a debtor submits documents to the court or a trustee, the debtor and his or her attorney must make a reasonable inquiry under the circumstances to verify that the information, legal arguments and factual contentions contained in such documents are not being presented for any improper purpose, are well-grounded in fact and are warranted by existing law.
The trustee’s duties were also expanded under BAPCPA. The trustee must advise a domestic support creditor in writing of the existence of and right to use support enforcement and collection agencies. The trustee must also provide notice of such claims to those agencies. If the debtor was serving as an administrator of an employee benefit plan at the time of filing, the trustee must perform the duties of an administrator. If a debtor is a health care business, the trustee must use “all reasonable and best efforts” to transfer that business’s patients to another such business in the same physical area that provides substantially similar services with a reasonable quality of care.
At the Tennessee law office of Mark T. Young & Associates , we prepare and file Chapter 7 bankruptcy petitions for individuals throughout Southeast Tennessee and North Georgia. Our dedication and attention to detail enable us to file petitions effectively and efficiently. We are committed to helping individuals achieve debt relief.
Attorney Mark T. Young has more than 30 years of experience preparing and filing Chapter 7 petitions. His extensive experience and dedication to helping individuals live a debt-free life is demonstrated in the fact that he is a specialist in Consumer Bankruptcy lawyer.
“Discharge” in the bankruptcy sense refers to clearing the debtor’s slate of all, or most, past debts. Although many people expect that filing for bankruptcy will wipe out all of their debts, that is not always the case. Bankruptcy only discharges certain debts. The availability of discharge depends on the type of bankruptcy proceeding involved, who the debtor is, and what type of debts the debtor has. Contact Mark T. Young & Associates in Hixson, Tennessee, today to schedule a consultation with a bankruptcy attorney to learn more about which debts will be discharged by a Chapter 7 bankruptcy and which debts will remain.
There are a number of prerequisites for obtaining a discharge. In a Chapter 7 liquidation case, if the debtor was in some way dishonest or uncooperative, such as by making fraudulent transfers or failing to keep adequate records prior to filing or by ignoring lawful court orders after filing, the court may deny discharge. In addition, a Chapter 7 debtor cannot have his or her debts discharged under Chapter 7 more than once every eight years. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) provides that in order to receive a discharge, an individual debtor must complete a personal financial management class.
When a discharge is granted, it protects the debtor from any further liability on the discharged debts. No legal action may be taken against the debtor to collect on discharged debts, and no collection calls or letters may be sent with regard to such debts. A discharge does not actually cancel or extinguish the debt, however; it merely extinguishes the debtor’s personal liability. Also, a discharge does not automatically discharge a co-debtor’s or guarantor’s liability.
A bankruptcy discharge also has no effect on liens. Take, for example, the situation in which the debtor owes the creditor $5,000 and the debt is secured by the debtor’s car, which is worth $3,000. If the debtor files for Chapter 7 relief and receives a discharge, the discharge does not extinguish the creditor’s security interest in the debtor’s car. In other words, the creditor can still repossess the car. However, it cannot go after the debtor for the $2,000 difference between the debt and the value of the security. That is the personal protection afforded to the debtor by the bankruptcy discharge.
A court may revoke a Chapter 7 discharge if the trustee or a creditor requests it, and if the debtor obtained the discharge through fraudulent means, acquired property that is property of the estate and knowingly failed to report the property or give it to the trustee, or made a material misstatement or failed to provide information in connection with an audit of his or her case.
Generally speaking, in a Chapter 7 proceeding, the following debts are not discharged:
Educational loans guaranteed by the United States government are generally not discharged by a Chapter 7 bankruptcy. Student loans may be dischargeable, however, if the court finds that paying off the loan will impose an “undue hardship” on the debtor and his or her dependents. In order to qualify for a hardship discharge of a student loan, the debtor must demonstrate that he or she cannot make payments at the time the bankruptcy is filed and will not be able to make payments in the future. The debtor must apply before the discharge of the debtor’s other debts is granted. Application for a hardship discharge is not included in the standard bankruptcy fees, and must be paid for after the case is filed.
The Bankruptcy Code does not specifically define the requirements for granting a hardship discharge of a student loan. Courts often apply a three-part test to determine eligibility:
In addition, the following debts are not discharged if the creditor objects during the case and proves that the debt fits one of these categories:
In a Chapter 7 case, the debtor must relinquish his or her nonexempt property to a bankruptcy trustee, who then converts the property into cash by selling it and pays the debtor’s creditors from the sale proceeds. In return, the debtor receives a Chapter 7 discharge of certain debts if he or she is eligible for such a discharge, pays the filing fee, completes a personal financial management course and obeys the court’s directives.
No. A debtor may not be eligible for a discharge under Chapter 7 if he or she has been granted a discharge in a Chapter 7 case within the last eight years. Debtors who engage in certain fraudulent conduct related to the bankruptcy or their financial situation also may not be eligible for discharge. In addition, if the debtor refuses to answer questions or obey orders of the bankruptcy court, the court may refuse to grant a discharge. There is also a “means test” that must be passed before a Chapter 7 can proceed.
Yes. A husband and wife may file a joint petition under Chapter 7. If a joint petition is filed, only one set of bankruptcy forms is needed and only one filing fee is charged.
No. However, the spouse that does not file will not receive the benefits of bankruptcy. In other words, if the non-filing spouse is jointly liable on certain debts, he or she will remain liable for those debts even if the filing spouse benefits from the automatic stay in Chapter 7 bankruptcy. On the other hand, the non-filing spouse will not have bankruptcy noted on his or her credit report.
No. If you live with a significant other but are not legally married, you cannot file for bankruptcy together, even if all bills are in both of your names. In such cases, each one of you would have to file a separate bankruptcy petition.
No. It is illegal for both private and governmental employers to discriminate against a person as to employment because that person has filed for bankruptcy. Your employer also cannot fire you if you file for bankruptcy.
Yes. Some of the money garnished from your paycheck may even be returned to you, depending on how much was garnished and when it was garnished. If your wages are currently subject to garnishment, a Notification of Stay must be mailed to the creditor and your employer in order to stop the garnishment after your bankruptcy petition is filed.
Income taxes may, under certain circumstances, be discharged or reduced if they are at least three years old and the tax returns have been on file for at least two years. You cannot discharge more recent tax debts.
Yes. When you file for bankruptcy, an “automatic stay,” which stops most collection actions against you, arises by operation of law. However, filing a petition does not stay certain types of actions, and the stay may only be for a limited period. As long as the automatic stay is in place, creditors may not initiate or continue lawsuits against you, garnish wages or contact you demanding payments.
Although you do not legally need an attorney to file for bankruptcy, the bankruptcy laws are complex, and professional help is strongly advised. Competent legal representation can prevent you from experiencing even further financial disasters, such as the loss of your home and other valuable property, as well as set your finances straight for the future.
Our legal team is available to discuss your situation at 423-933-1606 or at toll-free number 423-870-5225. You may also send us an email to schedule your free consultation with an experienced, dedicated bankruptcy attorney. We are conveniently located and offer handicap accessibility, as well as free parking.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.
At Mark T. Young & Associates, We Get You The Help You Need.
Fields marked with an * are required
"(Required)" indicates required fields
© 2025 Mark T. Young & Associates. All Rights Reserved.
Digital Marketing By:
