Best Bankruptcy & Debt Lawyers in Nashville

About Bankruptcy & Debt Law in Nashville, United States

Bankruptcy and debt law governs how individuals and businesses deal with overwhelming debt, how creditors collect, and how courts supervise the fair distribution of assets. In Nashville, you file bankruptcy in the United States Bankruptcy Court for the Middle District of Tennessee. The two most common consumer options are Chapter 7 bankruptcy - which can liquidate nonexempt assets to pay unsecured creditors and often leads to a discharge of qualifying debts - and Chapter 13 bankruptcy - which sets up a court-approved repayment plan lasting three to five years. Bankruptcy interacts with federal law, state exemptions, local court procedures, and Tennessee-specific statutes and rules that affect garnishment, foreclosure, and exemptions.

Why You May Need a Lawyer

Bankruptcy is both procedural and strategic. An experienced bankruptcy lawyer helps in several common situations:

- You face an imminent foreclosure, repossession, wage garnishment, bank levy, or creditor lawsuit - an attorney can file the petition or emergency motions quickly to trigger the automatic stay and buy you time.

- You are unsure which chapter to file - a lawyer assesses your income, debts, assets, and goals and advises whether Chapter 7, Chapter 13, or another option is best.

- You have complex assets or exemptions - if you own real estate, retirement accounts, a business, intellectual property, or nonstandard property interests, local law and exemption choices matter.

- You have tax debts, student loans, or recent transfers - these areas involve special rules, adversary proceedings, or means of relief that require legal strategy.

- You need help negotiating with mortgage lenders, stopping foreclosure, curing arrears, or filing a reaffirmation agreement for secured property like a car.

- You are a small business owner or self-employed and need to sort business debts, contracts, leases, and potential personal liability.

- You want to protect co-signers or joint account holders - bankruptcy can affect third parties differently than the filer, and an attorney can advise protective measures.

Local Laws Overview

This overview highlights local and practical points that are particularly relevant to individuals in Nashville and Davidson County.

- Court and venue - Consumer bankruptcy cases in Nashville are handled in the U.S. Bankruptcy Court for the Middle District of Tennessee. Filings follow federal bankruptcy rules and local rules for the district. Court calendars and procedures are shaped by local practices - for example, how hearings are scheduled and where to file pleadings.

- Exemptions - Exemptions determine what property you can keep. Exemptions can include categories such as homestead, personal property, vehicle exemptions, tools of the trade, retirement accounts, and public benefits. Whether you use federal or state exemptions depends on residency history and state law. Exemption amounts and rules matter greatly when deciding to liquidate or reorganize.

- Means test and eligibility - To qualify for Chapter 7, filers must pass the means test or show other qualifying circumstances. The test compares household income to median incomes for Tennessee and accounts for allowed deductions. If you do not qualify for Chapter 7, Chapter 13 may allow you to repay debts over time.

- Automatic stay - Filing a bankruptcy petition triggers an automatic stay that generally stops foreclosure, repossession, most collection calls, lawsuits, wage garnishment, and bank levies. There are exceptions and creditor remedies for relief from stay through court motions.

- Redemption, reaffirmation, and retention of secured property - Tennessee filers commonly face issues with car loans and mortgages. Bankruptcy provides tools to redeem collateral, reaffirm debt, or include secured debts in a Chapter 13 plan to cure defaults while keeping the property.

- Student loans and taxes - Dischargeability rules for student loans and certain taxes are strict. Student loans are rarely dischargeable without a separate hardship proceeding. Older federal tax debts may be dischargeable if statutory tests are met.

- State collection protections - Tennessee law also controls wage garnishment, creditor remedies, and consumer protection. Tennessee statutes and court decisions can affect creditor behavior, allowed garnishment amounts, and exemptions that supplement federal bankruptcy law.

- Local resources and practice - Bankruptcy trustees, U.S. Trustee staff, local credit counseling providers approved for the mandatory pre-filing counseling and post-filing debtor education, and local legal aid organizations play a role in the process.

Frequently Asked Questions

What is the automatic stay and how does it help me?

The automatic stay goes into effect the moment you file a bankruptcy petition. It stops most creditor actions - such as foreclosure, repossession, wage garnishment, bank levies, and collection lawsuits - while your bankruptcy case is pending. It provides breathing room to decide your next step. Creditors can ask the court for relief from the stay if they have good cause - for example, if collateral is deteriorating or the creditor would suffer undue hardship.

Should I file Chapter 7 or Chapter 13?

Chapter 7 is usually quicker and discharges many unsecured debts but may require surrender of nonexempt assets. It is often chosen when household income is low and discharge is the goal. Chapter 13 creates a repayment plan for disposable income over three to five years and can be better if you have a steady income, want to keep property at risk of repossession or foreclosure, or need to catch up on secured debts. A lawyer or credit counselor can help evaluate eligibility and consequences.

Do I have to go to credit counseling before filing?

Yes - federal law requires you to complete an approved credit counseling session from a nonprofit or authorized provider within 180 days before filing. You must also complete a debtor education course after filing to receive a discharge. Certified providers issue certificates that you must file with the court.

Can filing bankruptcy stop a foreclosure in Nashville?

Filing bankruptcy typically triggers the automatic stay, which stops foreclosure proceedings immediately while the case is active. In Chapter 13 you can often cure missed payments over time and keep the home. In Chapter 7 the stay may give short-term relief but you may not be able to keep the home if you cannot bring mortgage payments current or negotiate with the lender.

What happens to co-signers and joint account holders?

Bankruptcy eliminates your personal obligation to creditors for discharged debts, but it does not always protect co-signers. A co-signer who did not file may still be liable. Additionally, joint account holders may remain responsible. It is important to understand how a filing will affect anyone who is jointly liable on your debts.

Can I keep my house and car if I file bankruptcy?

It depends on the chapter you choose, the value of the property, exemptions you can claim, equity you have, and whether you can continue to make payments. Exemptions protect certain property from liquidation in Chapter 7 and allow you to protect equity. Chapter 13 enables you to include ongoing secured payments in a repayment plan and cure arrears over time.

How long does a bankruptcy stay on my credit report?

A Chapter 7 bankruptcy typically remains on your credit report for up to 10 years from the filing date. A Chapter 13 filing usually remains for up to seven years from the filing date. Credit scores may start to recover sooner if you rebuild credit responsibly. Bankruptcy does not prevent you from obtaining credit in the future, but it can affect terms and interest rates.

Are student loans dischargeable in bankruptcy?

Student loans are rarely discharged. To eliminate student loan debt you must generally file an adversary proceeding and prove undue hardship under a strict standard. Courts apply different tests for undue hardship, and outcomes vary. An attorney can assess whether pursuing discharge is realistic in your situation.

What debts are not dischargeable in bankruptcy?

Some debts are generally non-dischargeable, including certain taxes under specific conditions, recent income tax liabilities, domestic support obligations such as child support and alimony, most criminal fines and restitution, certain debts incurred by fraud, and many student loans unless undue hardship is proven. The exact list can be complex and may depend on timing and circumstances.

How do I find affordable legal help in Nashville?

Start by contacting local legal aid organizations, the Nashville Bar Association lawyer referral services, or low-cost clinics run by law schools or nonprofits. Many bankruptcy attorneys offer a free or low-cost initial consultation. If you qualify financially, nonprofit organizations and pro bono programs may assist. Be cautious about using nonlawyer services for filing - an attorney provides legal advice and can handle complex matters like adversary proceedings or motions for relief.

Additional Resources

When seeking help in Nashville, consider these types of local and federal resources - contact them by phone or in person to learn about services available to you:

- U.S. Bankruptcy Court - Middle District of Tennessee - local court that handles filings, schedules, and procedures.

- U.S. Trustee Program - supervises bankruptcy administration and offers information on trustee offices and approved credit counseling providers.

- Tennessee Attorney General - Consumer Protection Division - assists with fraud, scams, and consumer disputes.

- Legal Aid Society of Middle Tennessee and the Cumberlands - provides civil legal help to qualifying low-income residents.

- Nashville Bar Association - lawyer referral services and local attorney directories.

- Tennessee Bar Association - statewide resources, lawyer referral, and self-help materials.

- Approved credit counseling agencies - required for pre-filing counseling and post-filing debtor education. Ensure the provider is court-approved and nonprofit when possible.

- National and local credit counseling nonprofits - for budgeting, debt management plans, and education.

- Local courts and clerk offices - for information about filing fees, forms, and local rules.

Next Steps

If you are considering bankruptcy or need immediate relief from creditors, follow these practical steps:

- Pause and gather documents - collect recent pay stubs, tax returns, bank statements, a list of creditors and balances, mortgage or lease papers, vehicle titles and loans, and a list of monthly expenses. This information will be necessary for counseling and any bankruptcy petition.

- Complete mandatory credit counseling - schedule and finish the required session within the allowed time frame before filing.

- Seek a consultation - meet with a bankruptcy attorney to review options. Many attorneys provide an initial meeting to discuss chapter choices, likely outcomes, and fees. Prepare questions about timelines, costs, and local practice.

- Consider your goals - decide whether stopping a foreclosure, discharging unsecured debts, reorganizing payments, or protecting family assets is your priority. An attorney can tailor a plan to meet those goals.

- Act quickly if collection actions are pending - if garnishment, foreclosure, or repossession is imminent, contact an attorney immediately. Filing a bankruptcy petition or a motion in court can produce an immediate stay of collection activity.

- Use reputable providers - only use approved credit counseling agencies and qualified attorneys. Avoid companies that promise guarantees or push quick filings without clear legal advice.

- If you cannot afford an attorney - contact local legal aid or bar association referral services to learn about low-cost or pro bono help.

Bankruptcy can be a powerful tool to regain control of your finances, but it involves legal choices with long-term consequences. Local counsel in Nashville can explain the nuances of Tennessee law, the Bankruptcy Code, and court procedures so you can make an informed decision.