Chapter 7 bankruptcy is a legal tool that may help some Tennessee residents eliminate their debts and improve their financial futures. However, as it does require individuals to meet certain criteria, it is important that readers talk to their attorneys about whether this form of personal bankruptcy will meet their needs. Chapter 7 bankruptcy requires individuals who do not have enough income to sell off or liquidate their assets in order to have funds to pay their creditors.
It is important that readers of this blog understand that their financial situations are unique. Individuals are advised that this and other articles on this blog are informational only and case-specific help should be sought from a bankruptcy attorney.
Bankruptcy is not a problem only for young people. Tennessee residents may harbor the misconception that financial mismanagement during one's youth is the root cause of economic struggles. However, recent trends in bankruptcy filings suggest that even individuals who have reached retirement age can be affected by surprise bills, unexpected illnesses, and other catastrophes that can destroy their financial health.
Under the law, businesses can be recognized as legal entities and, therefore, may have certain rights when it comes to seeking bankruptcy protection. For example, a Tennessee business that has overwhelming debts and cannot turn a profit to repay those obligations may be able to use Chapter 7 bankruptcy to liquidate its assets and repay its loans. This post will briefly discuss Chapter 7 bankruptcy for businesses but, as with all legal matters, readers are asked to seek their own legal advice.
Different paths to bankruptcy relief exist because not all individuals experience the same financial challenges and difficulties. As such, a Tennessee resident who is confronting significant financial hardship may elect to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy. If they wish to pursue Chapter 7 as their method of overcoming their debts they must qualify for the process by passing the legal process's means test.
It is a common misconception that achieving a bankruptcy discharge will wipe out all of a Tennessee resident's outstanding debts. In fact, a number of debts will survive the bankruptcy process and will remain liabilities for the individual to repay even after they have successfully completed the legal process. This post will discuss some of the debts that will endure a Chapter 7 bankruptcy discharge but readers are reminded that it is not exhaustive. Consultation with a bankruptcy attorney should be sought for case-specific advice.
"Straight bankruptcy" is just another name for Chapter 7 bankruptcy and the process that goes along with it. Readers of this Tennessee debt relief and bankruptcy blog may know Chapter 7 bankruptcy to be the process of liquidating one's personal assets in order to pay off creditors and attain financial freedom.
It is easy to assume that if a person wins the lottery that they will be set up for financial success for the rest of their life. In fact, if a Tennessee resident wins big and pockets millions of dollars in a lottery windfall, then they may foresee a future where their children, grandchildren and other descendants may live without any economic concerns. However, this is often a fallacy. Many lottery winners end up filing for bankruptcy due to financial mismanagement, unwise investments and victimization by unscrupulous individuals.
Many Chattanooga residents take out student loans in order to finance their higher educations. However, at present it is very difficult for Tennessee residents who hold federal student loans to eliminate those burdens in bankruptcy. That is because in order to do so, a debtor must show that the repayment of their student loans subjects them to undue hardship. The biggest problem in accomplishing this is that the government has never clearly explained what an "undue hardship" in this context is.
In order to determine if a person will qualify for the protections offered from Chapter 7 bankruptcy, he or she must carefully review a number of factors related to their financial situation. In order to successfully perform this analysis many individuals in difficult monetary situations turn to trusted bankruptcy and debt relief attorneys in their Tennessee communities. These legal professionals can help their clients work through the topics discussed below as well as other important considerations relevant to their prospective bankruptcy cases.