Best Bankruptcy Lawyers in Tennessee

About Bankruptcy Law in Tennessee, United States

Bankruptcy is a legal process that helps individuals and businesses in Tennessee who are unable to repay their debts. By filing for bankruptcy, people can seek relief from overwhelming financial obligations and, in many cases, get a fresh financial start. Bankruptcy laws are governed by federal law, but certain procedures, exemptions, and requirements are unique to Tennessee. The main types of bankruptcy for individuals are Chapter 7 and Chapter 13, each offering different approaches depending on your personal financial situation.

Why You May Need a Lawyer

Filing for bankruptcy can be a complex process with significant long-term effects. Many people in Tennessee seek legal assistance for the following reasons:

• Understanding what type of bankruptcy to file - Chapter 7, Chapter 13, or others
• Dealing with creditor harassment or pending lawsuits
• Protecting property from being seized or liquidated
• Avoiding mistakes or omissions in the paperwork which could delay or jeopardize your case
• Negotiating debt repayment plans under Chapter 13
• Handling bankruptcy litigation or disputes with creditors
• Ensuring eligibility for exemptions under Tennessee state law

An experienced bankruptcy attorney can help protect your rights, provide guidance during this stressful time, and increase your chances of a successful outcome.

Local Laws Overview

While federal bankruptcy law applies uniformly across the United States, Tennessee has its own specific exemptions and local court rules. Here are some key legal aspects in Tennessee:

• Tennessee residents may choose between federal and Tennessee state exemptions to protect certain property from creditors. Common state exemptions include equity in a home (homestead exemption), personal property, retirement accounts, and tools of the trade.
• Tennessee’s homestead exemption is generally up to 5,000 dollars for a single homeowner and 7,500 dollars for a married couple filing jointly. Higher exemptions may apply for certain individuals, such as those over 62 or with dependents.
• The United States Bankruptcy Court for the Middle, Eastern, and Western Districts handles all bankruptcy cases in Tennessee. Each district has local procedures you must follow.
• Bankruptcy does not discharge all debts. Certain debts such as alimony, child support, most student loans, and some taxes may not be wiped out even after bankruptcy.
• After filing, an automatic stay usually takes effect, stopping most collection efforts by creditors.

Frequently Asked Questions

What types of bankruptcy can I file in Tennessee?

Most individuals file either Chapter 7 (liquidation bankruptcy) or Chapter 13 (repayment plan bankruptcy). There is also Chapter 11 for businesses and some individuals with very large debts.

Who qualifies for Chapter 7 bankruptcy in Tennessee?

Eligibility for Chapter 7 is determined by a means test comparing your income to the median income in Tennessee. You may not qualify if your income is above certain thresholds or if you have sufficient income to repay debts.

What property can I keep if I file bankruptcy in Tennessee?

Tennessee allows you to exempt certain types of property, like a portion of the equity in your home, your car, personal belongings, retirement accounts, and more. These exemptions help you keep essential items while discharging other debts.

Can bankruptcy stop foreclosure or repossession of my home or car?

Filing for bankruptcy usually triggers an automatic stay, temporarily stopping foreclosure, repossession, or collection actions. Chapter 13 may allow you to catch up on missed payments and keep your home or car.

How does filing bankruptcy affect my credit score?

Bankruptcy can significantly lower your credit score and remain on your credit report for up to 10 years (for Chapter 7) and up to 7 years (for Chapter 13). However, it can also help you rebuild financially over time.

Do I have to go to court for bankruptcy?

Most Tennessee filers attend a brief meeting of creditors (called a 341 meeting) rather than a formal court hearing. You may need to appear in court only if there are disputes or challenges in your case.

Can I get rid of all my debts by filing bankruptcy?

Not all debts are dischargeable. Debts like child support, alimony, some taxes, and most student loans are generally not wiped out in bankruptcy.

How much does it cost to file bankruptcy in Tennessee?

Bankruptcy filing fees vary based on the type: as of 2024, Chapter 7 costs 338 dollars and Chapter 13 costs 313 dollars, not including attorney fees. Fee waivers or payment plans may be available based on your income.

Do both spouses have to file bankruptcy together?

No, spouses can file individually or jointly, depending on your specific debts and property. Filing jointly may be beneficial if most debts are shared.

Can I lose my job if I file for bankruptcy?

Federal law prohibits most employers from firing an employee solely because they filed for bankruptcy. However, there may be exceptions for certain sensitive jobs. Consult a lawyer to understand your rights.

Additional Resources

If you need help with bankruptcy in Tennessee, consider these resources:

• United States Bankruptcy Court for the Eastern, Middle, and Western Districts of Tennessee - for local forms, rules, and filing requirements
• Legal Aid Society of Middle Tennessee and the Cumberlands - provides free or low-cost legal help to eligible individuals
• Tennessee Bar Association - for lawyer referrals and consumer resources
• Consumer Credit Counseling Services - for counseling and debt management advice
• National Foundation for Credit Counseling - offers non-profit financial and credit counseling

Next Steps

If you are considering bankruptcy in Tennessee, it is important to take the following steps:

• Assess your financial situation and consider alternatives, such as negotiating with creditors or credit counseling.
• Gather information about your debts, assets, income, and monthly expenses.
• Consult with a qualified bankruptcy lawyer to discuss your options, eligibility, and the best path forward based on your circumstances.
• Prepare necessary documents for your attorney and the court, such as pay stubs, tax returns, lists of debts, and property information.
• Follow your attorney’s guidance throughout the process for the best chance of a successful outcome.

Filing for bankruptcy is a serious decision, but with the right legal advice and support, it can be the first step toward financial stability and peace of mind.