Best Bankruptcy & Debt Lawyers in Tennessee

About Bankruptcy & Debt Law in Tennessee, United States

Bankruptcy and debt law in Tennessee is designed to provide individuals and businesses with legal options to address overwhelming debt. For many, filing for bankruptcy is a way to get a financial fresh start when managing debt becomes unmanageable. Tennessee law works in conjunction with federal bankruptcy law, and cases are generally filed in federal bankruptcy court. Aside from bankruptcy, there are other debt relief tools, including negotiation, debt settlement, and debt consolidation, that may help you avoid more severe financial consequences.

Why You May Need a Lawyer

Seeking legal advice from a bankruptcy and debt attorney in Tennessee can be crucial in several circumstances. Common situations include:

• Facing foreclosure on your home
• Receiving constant collection calls or lawsuits from creditors
• Wages being garnished due to unpaid debts
• Unmanageable credit card, medical, or personal loan debt
• Owing back taxes or child support that you are unable to pay
• Needing clarity regarding which debts can be discharged
• Confusion about which bankruptcy chapter, such as Chapter 7 or Chapter 13, is appropriate for your situation

A lawyer can review your finances, explain your options, help prepare paperwork, represent you in court, and protect your legal rights throughout the process.

Local Laws Overview

Tennessee bankruptcy cases are governed primarily by federal law, but state exemptions play a crucial role. Exemptions determine what property you can keep when you file for bankruptcy. Tennessee residents can choose between state and federal exemptions, but not a combination of both.

Tennessee's homestead exemption lets you protect a certain amount of equity in your home. There are also exemptions for personal property, retirement accounts, tools of trade, and vehicles, though limits apply. Tennessee mandates credit counseling from an approved agency before filing, and a financial management course before debts can be discharged.

Chapter 7 bankruptcy (liquidation) is common for individuals without many assets, while Chapter 13 (reorganization) is often used for those seeking to keep property by developing a payment plan. Tennessee residents must meet specific requirements on income and debt levels to be eligible. Additionally, Tennessee has its own statutes regarding debt collection practices and limits on garnishments.

Frequently Asked Questions

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

Chapter 7 bankruptcy involves liquidating non-exempt assets to pay creditors while discharging most remaining debts. Chapter 13 bankruptcy lets you keep more property by establishing a repayment plan for part or all of your debts over three to five years.

How much property can I keep if I file for bankruptcy in Tennessee?

The amount and type of property you can keep depend on Tennessee exemption laws. You may be able to keep your primary home, car, and certain personal property within exemption limits.

Will I lose my home if I file for bankruptcy in Tennessee?

You may not lose your home if its equity is within Tennessee's homestead exemption limit. In Chapter 13 bankruptcy, you may be able to catch up on overdue payments through a repayment plan.

Can bankruptcy stop foreclosure or repossession?

Yes, filing for bankruptcy generally triggers an automatic stay, which temporarily halts foreclosure, repossession, and most collection activities.

What debts cannot be discharged in bankruptcy?

Debts such as child support, alimony, most student loans, certain taxes, and debts incurred through fraud are not usually discharged in bankruptcy.

How long does bankruptcy stay on my credit report?

A Chapter 7 bankruptcy stays on your credit report for 10 years, while Chapter 13 remains for 7 years from the date of filing.

Can I file for bankruptcy more than once?

Yes, but there are time limits between filings. For example, you must wait eight years between Chapter 7 filings.

Are there alternatives to bankruptcy?

Yes, alternatives include debt consolidation, debt negotiation or settlement, and seeking credit counseling to develop repayment plans without involving the courts.

What is a means test and do I need to take it?

The means test determines if your income is low enough to qualify for Chapter 7 bankruptcy. If your income is above the median for Tennessee, you must pass this test to proceed with Chapter 7.

What should I do if I am being harassed by debt collectors?

Federal and state laws regulate collection practices. You have the right to demand that collectors stop contacting you, and legal professionals can help stop unlawful harassment and verify debts.

Additional Resources

• United States Bankruptcy Court for the Middle, Eastern, and Western Districts of Tennessee - These courts handle bankruptcy filings in the state.
• Tennessee Bar Association - Provides lawyer referral services and legal help.
• Tennessee Department of Commerce & Insurance, Division of Consumer Affairs - Offers consumer protection guidance, including on debt collection issues.
• Legal Aid Society of Middle Tennessee and the Cumberlands - Offers free or low-cost legal help for qualifying individuals.
• National Foundation for Credit Counseling (NFCC) - Offers approved credit counseling and debtor education services.

Next Steps

If you are struggling with debt or considering bankruptcy in Tennessee, gather copies of your financial documents such as pay stubs, tax returns, and debt statements. List your assets, debts, and monthly expenses. Schedule a consultation with a qualified bankruptcy and debt attorney who is familiar with Tennessee law. The attorney can assess your financial situation, explain your legal options, and outline the steps for filing for bankruptcy or exploring alternative debt solutions. Acting promptly can help you avoid additional legal and financial consequences and put you on the path to financial recovery.