Maryville Bankruptcy Lawyers

Maryville Bankruptcy Lawyer

Helping individuals and businesses restart financially in Tennessee

Bankruptcy is a perfectly legitimate option when you have no other way of paying your bills. In fact, the right to file bankruptcy is set forth in the US Constitution. At LaFevor & Slaughter, we help people file for bankruptcy when medical bills, credit card bills, and other expenses become unbearable. Many of our clients have lost a job, gone through a divorce, had illnesses, or struggled to make ends meet in a changing economy. Our Maryville bankruptcy lawyer helps individuals and businesses stop creditors from calling and stop collection actions. We help our clients obtain a new financial start.

Practice Areas

How can our Maryville family law attorneys help?

How does your bankruptcy lawyer help debtors select the correct type of bankruptcy?

For individuals, LaFevor & Slaughter review your sources of income, your debts, your assets, and the status of any collection actions or judgments. We’ll identify each item and help you determine the value of each item. Individuals generally file Chapter 7 to discharge their unsecured debts and Chapter 13 to save their secured assets.

For businesses, we’ll also review your profit and loss statements, where you can earn more profits, what expenses can be cut, and the overall financial structure of your business. Businesses that intend to close and have open bills generally choose Chapter 7. Businesses with debt that want to stay open can opt for Chapter 13.

How are debts classified?

Our Maryville bankruptcy lawyer helps people and businesses identify what types of debts they have. Bankruptcy filers must identify the following types of financial obligations:

  • Secured debts. A secured debt means that your loan or financial obligation is secured by real or tangible property. If you fail to pay your debt, the creditor that holds the security interest can take possession of the collateral and sell it to pay your debts. The most common examples are home loans that are secured by your home (called a mortgage) and car loans that are secured by your vehicle.
  • Unsecured debts. Loans and financial obligations that are not secured by collateral are called unsecured debts. Common examples include credit card bills and medical expenses. To collect from you, a creditor must obtain a judgment. The creditor then uses the judgment to sell off your assets to pay the balance of your debt.
  • Priority debts. The US Bankruptcy Court for the Eastern District of Tennessee provides that some debts, called priority debts, cannot be discharged in bankruptcy. Common examples include student loans, child support, and income taxes.

How does the “automatic stay” stop collection actions immediately?

Being in debt is traumatic. Whenever you answer the phone or open your mail, a creditor may remind you that you owe them money – and if you don’t pay, the creditor will take legal action.

The automatic stay is a bankruptcy provision that provides immediate relief. The moment you file a Chapter 7, 13, or 11 petition, the Bankruptcy Court for the Eastern District of Tennessee will automatically stay any collection actions by any creditors. The bankruptcy trustee will reverse any credit actions that took place after the filing of your bankruptcy petition. The automatic stay continues throughout the bankruptcy process unless a creditor obtains relief (permission) from the bankruptcy court to continue their collection efforts.

When do you recommend a Chapter 7 bankruptcy in Maryville?

Both individuals and businesses can file for Chapter 7 bankruptcy. Businesses will need to dissolve their business when their Chapter 7 bankruptcy is complete.

Our Maryville bankruptcy lawyer will normally recommend a Chapter 7 bankruptcy if:

  • You don’t have any secured debts.
  • You don’t have any valuable assets.
  • You’re not able to pay your bills.

You can exempt (protect) some of your possessions such as clothing, furniture, cars, jewelry, and tools, up to certain cash values. Chapter 7 filers should also be able to protect their Social Security, VA benefits, and other retirement benefits. Our Maryville bankruptcy lawyer will review which possessions and accounts you can protect and which assets the trustee can take.

The approval of your Chapter 7 petition by the bankruptcy judge means that your unsecured debts are discharged. Any creditor who holds an unsecured debt cannot try to get that debt any further. We’ll explain how you can use “reaffirmation agreements” to protect some secured debts, such as your vehicle.

When do you recommend a Chapter 13 bankruptcy in Maryville?

LaFevor & Slaughter often recommend Chapter 13 bankruptcy for homeowners who are behind on their mortgage payments and for clients who have other types of secured debts. Individuals who fail the bankruptcy “means test” will need to file Chapter 13 if they want to manage their debts through the bankruptcy court.

The requirements of Chapter 13 are that you propose a plan where you agree to:

  • Pay off the amount that you’re behind (arrears) on your secured debts during a three-to-five-year period.
  • Continue the future secured debts (such as your monthly mortgage payments) as they become due.
  • Pay the arrears on any priority debts during the same three-to-five-year period and pay the future financial obligations on a timely basis.
  • Pay a percentage of your unsecured debts during that same three-to-five-year period.

After the plan is approved, you make regular payments to the bankruptcy trustee.

After you finish the plan in 36 to 60 months, you can keep your home and other secured property. You will need to continue to make payments as they become due. The remainder of your unsecured debts will be discharged.

The means test

The US Bankruptcy Courts, since 2005, have used a means test to assess your eligibility for filing a Chapter 7. You’ll need to file a Chapter 13 if you fail the means test. This test compares your income and family size to other people in the Maryville region with the same family size. Our Maryville bankruptcy lawyers will explain what income is considered and what income, such as Social Security income, is not used in the test. If your income is below the median income, you can file a Chapter 7 bankruptcy.

Otherwise, there is a second test that examines your disposable income (what’s left after your reasonable expenses). If your disposable income is low enough, you can still file for Chapter 7. Otherwise, you will need to file for Chapter 13.

When do you recommend a Chapter 11 bankruptcy in Maryville?

A Chapter 11 bankruptcy is also known as a “reorganization.” It helps businesses continue to operate while the businesses make arrangements to pay their creditors. We’ll help you prepare a reorganization plan that is acceptable to creditors. Chapter 11 does provide some protections, such as the automatic stay, to help convince creditors to agree to your plan. Chapter 11 is used for businesses that want to keep operating. Businesses that are ready to close should consider using Chapter 7.

Are there financial options other than bankruptcy in Maryville?

Our Maryville bankruptcy lawyer will discuss any strategies that can help you avoid bankruptcy. These strategies include consolidating your loans, obtaining new loans at lower interest rates, and negotiating settlements and extensions with your creditors. We’ll explain all your options.

Do you have a Maryville bankruptcy lawyer near me?

LaFevor & Slaughter is located at 317 Ellis Ave. Suite 317, in Maryville. We maintain an additional office in Knoxville.

We speak with clients by phone and through video conferences. We’ll help you choose the best financial option for your situation.

Speak with an experienced Maryville bankruptcy lawyer today

LaFevor & Slaughter understands your financial distress. Our Maryville bankruptcy attorney has helped many people and businesses who are struggling financially use the bankruptcy process to get control of their finances. We’ll review which type of bankruptcy – Chapter 7, Chapter 13, or Chapter 11 – is your best option. We’ll also explain how to begin restoring your credit when you’re out of bankruptcy. Call us or complete our contact form to schedule a consultation.