Maryville Chapter 7 Bankruptcy Lawyers

Maryville Chapter 7 Bankruptcy Lawyer

Helping people and businesses with unsecured debts start fresh in Tennessee

There’s no shame in filing for Chapter 7. Hundreds of thousands of Chapter 7 bankruptcy petitions are filed every year. No explanation is necessary. The core requirement is that you have unsecured debts (creditors can’t repossess your collateral). Most folks think about filing Chapter 7 when the calls, collection letters, and court notices start to arrive. At LaFevor & Slaughter, we understand how stressful it is to be behind on your bills. Our Maryville Chapter 7 bankruptcy lawyer is ready to help you get a fresh financial start.

Practice Areas

How can our Maryville family law attorneys help?

When is filing for Chapter 7 in Maryville the right choice?

Most people who file Chapter 7 bankruptcy in Tennessee are hard-working people who are struggling due to the loss of a job, an illness, a divorce, or other reasons beyond their control. Many filers have debts that are not secured by collateral. These debts include:

  • Credit card bills
  • Medical expenses
  • Unsecured loans
  • Collection accounts
  • Payday loans
  • Electric, gas, and water bills
  • Civil court judgments that are not due to fraud
  • Social Security overpayments
  • Car and home loans that are not secured

The debtors who should consider filing Chapter 7 are generally people with little disposable income (little cash after paying rent, food, clothing, and other necessities).

Chapter 7 does not discharge secured loans. Chapter 7 does not discharge certain “priority loans,” such as child support, alimony, college and other school loans, tax liens, or HOA fees (if you want to keep your residence). Our Maryville Chapter 7 bankruptcy lawyer will explain which debts can and cannot be discharged.

What happens when I file for Chapter 7 bankruptcy?

Before you can file for Chapter 7 in Tennessee, you need to complete certain requirements. Our Maryville bankruptcy lawyer will explain these steps. The requirements include:

  • Completing many forms. These forms list all your assets, income, and bills. Each item must be included and valued. You cannot discharge any bills that are not on the appropriate form.
  • Attending a pre-bankruptcy credit counseling course. These courses discuss personal finance problems and how to avoid them. You can take a course online or in person for about $20-$100.
  • Paying the Chapter 7 petition filing costs. The petition generally costs a few hundred dollars. You may qualify for an exception if you’re truly indigent.

The moment you file your Chapter 7 petition, the Bankruptcy Court will issue an “automatic stay.” Once the stay is issued, every credit action (calls, letters, foreclosure, repossessions, court actions, and sheriff’s sales) must stop immediately. Secured and priority creditors can try to seek relief from the automatic stay.

Once you file your Chapter 7 bankruptcy petition in the Bankruptcy Court for the Eastern District of Tennessee, the court will appoint a bankruptcy trustee. The trustee manages your petition, informs the creditors of your petition, and sets a time for a trustee’s meeting. The meeting is fairly informal. The trustee will review your petition. Our Maryville Chapter 7 lawyer will be at the meeting with you. Normally, creditors do not appear at the meeting.

You will have to attend a second counseling session (called “debtor education”) before your bankruptcy can be discharged.

The whole Chapter 7 process (from the filing date until the formal discharge) takes about six months unless something unusual occurs. The bankruptcy judge will sign your discharge order.

What is the Chapter 7 means test?

Since 2005, if you file for a Chapter 7 bankruptcy, you must pass a “means test.” The means test is the bankruptcy court’s way of determining whether you have enough money to pay some of your unsecured debts. Most people in Maryville who file Chapter 7 pass the means test.

The means test reviews your income and family size. A comparison is made to other people of the same family size in the same geographical area. If your income is below the median (based on a review of the prior six months), then you pass the means test and can file a Chapter 7 bankruptcy. Your Social Security retirement benefits and some other income sources are not part of the calculation.

If you fail the means test, our Maryville Chapter 7 bankruptcy lawyer helps you get a second opportunity based on comparing your income to your essential expenses (shelter, food, clothing, medical bills, and other needs). Many people who fail the initial means test pass the second test.

Can I protect any of my possessions when I file a Chapter 7 bankruptcy in Maryville?

Chapter 7 does grant you the right to “exempt” (protect) many of your assets. Some of the assets you should be able to protect (up to certain dollar amounts) are your clothes, furniture, jewelry, tools of any trade, Social Security retirement benefits, VA benefits, and even a limited equity in your home. Many Chapter 7 filers are also able to keep their car through their exemptions or by “reaffirming” their obligation to make the monthly payments.

How do I pay my bills after a Chapter 7 discharge?

With diligence, employment, and being careful not to spend what you don’t have, you should be able to pay your bills. Some creditors may consider giving you loans because your debts have been discharged and because you can’t refile until enough time has passed. Practically, you should build up a cash reserve before you consider obtaining any new credit cards or seeking any loans.

Your Chapter 7 bankruptcy remains on your credit record for 10 years.

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. You’re not alone. Our office has helped many people in financial distress obtain fresh starts through the Chapter 7 process.

Stop credit actions now. Call our caring Maryville Chapter 7 bankruptcy lawyer today

Nobody wants to miss a payment. Sometimes life is difficult. You need dental care. Your child needs new clothes. Your spouse just lost a job. The bills add up. At LaFevor & Slaughter, we’ll explain how Chapter 7 works and when it’s your best financial choice. Most Chapter 7 petitions are approved. Most filers can start fresh. Our Maryville bankruptcy attorney is ready to ease your worries and secure your financial future. Call us or fill out our contact form to schedule a consultation.