Whether it’s due to unpaid credit cards or outstanding medical bills, the consequences of excessive debt can make life miserable. Interest and monthly fees can pile up fast. Creditors may harass you and leave you feeling overwhelmed.
If you’re struggling with debt, it’s important to know you have options. Chapter 7 bankruptcy presents you with a legal pathway to wipe your financial slate clean by discharging your unsecured debt and stopping all debt collection activities.
Our Chapter 7 Bankruptcy Attorneys in Chattanooga, TN
The attorneys at Tom Bible Law can provide you with experienced legal advice. With three offices spread out across Tennessee, we offer our Chapter 7 filing services to clients throughout Tennessee and North Georgia.
Contact us today to schedule a free consultation with one of our Chattanooga Chapter 7 bankruptcy attorneys.
What Can Chapter 7 Bankruptcy Do for You?
Many people think of Chapter 7 bankruptcy only as a form of debt liquidation, because this process involves a bankruptcy trustee who uses the debtor’s assets to pay off creditors. This understanding is somewhat misleading. Although most people who file for Chapter 7 are drowning in unsecured debt, they often have few qualifying assets to seize (and sometimes none). Therefore, they have little to lose in bankruptcy resolution.
Unsecured debt is a type of debt that is not backed by anything. This means that if you don’t pay it, the creditor cannot take assets from you to sell and pay what you owe. Unsecured debts are things like credit card balances, payday loans, and medical debt.
However, not everyone can qualify for Chapter 7 bankruptcy. To be eligible, you must first pass a means test, which ensures you do not have the income necessary to reasonably pay your debts. The means test is a feature of the 2005 changes to the U.S. Bankruptcy Code, implemented to prevent people with the ability to pay their debts from getting them discharged (the Bankruptcy Abuse Prevention and Consumer Protection Act). For those who do not qualify for Chapter 7, Chapter 13 bankruptcy is an alternative.
Chapter 7 Legal Services in Tennessee and North Georgia
Chapter 7 bankruptcy begins with filing a petition to the court. This petition outlines all your debts, assets, and other financial information. Once this initial document has been processed, an “automatic stay” is issued by the court, which prevents creditors from contacting you or taking any collections against you.
Attorneys play a pivotal role in this bankruptcy process. Many people file for bankruptcy, but not everyone is successful in having their debts discharged by the court. Chapter 7 is a complex process, and a lot could go wrong. Having experienced legal counsel on your side can help ensure everything goes smoothly and that you get the most benefit possible.
Call Our Tennessee Chapter 7 Lawyers
Tom Bible Law can advise you on how best to position yourself for Chapter 7 debt relief. We can help you determine your eligibility, protect your assets, ensure compliance with the state and federal guidelines that regulate bankruptcy, guide you through each stage of bankruptcy, and advise you on rebuilding credit once the process is finished. Our attorneys are committed to helping you stop creditors, garnishments, and repossessions, relieve your debts and start fresh.
To get in touch with our Chapter 7 bankruptcy lawyers in Chattanooga, Tullahoma call (423) 690-7712.