What Will Happen To My Credit Rating
Many people discount bankruptcy or delay filing because of worries on how it will affect their credit rating. But as some food for thought, there are many cases where not choosing bankruptcy causes a worse effect on your credit score in the long run than if you were to file. How is this possible? Your credit score can go down if you are continuously not paying your credit cards on time, you miss payments or you completely stop paying. Having a lot of debt compared to income and over utilizing the credit you have can also cause your score to plummet. Further, actions against you, such as garnishments, judgments and liens, can all cause your credit score to take a hit. It can be hard to say how long it could take you to get out of this situation and you might end up choosing bankruptcy at some point anyway, especially if your desperate financial situation continues on a downhill course. For those with poor credit, bankruptcy can be the quickest way to increase your score. While bankruptcy is a negative on your credit, it creates positive because the negative reporting by creditors stops and after your debt is wiped out, your total debt compared to your income is vastly improved.
Understand The Costs Of Filing Bankruptcy In Tennessee
When you file for bankruptcy, you need to understand the cost and affordability of bankruptcy. The costs primarily consist of the filing fee and the attorney fee . Firstly, most attorneys offer payment plans. Some also offer $0 down payment options. The cost of the attorney can be variable based on such factors like your location and the difficulty of the case.
We built this Tennessee attorney fee calculator to help you estimate costs based on your specific zip code.
If you cannot afford a payment plan, you may also look at the legal aid options in your state and also how the filing fee waiver works.
Legal Aid In Tennessee
There are certain situations where you could get help through legal aid. Please note that each legal aid may have criteria set for who they will help. Here are legal aid option in Tennessee.
Filing Fee Waiver in Tennessee
Theres a filing fee to file bankruptcy. You can check the Tennessee filing fee waiver requirements to see whether you may be eligible for the filing fee waiver.
Print Your Bankruptcy Forms
Courts can be picky about documents. When you print the required forms to file a Chapter 7 bankruptcy case in Tennessee, you need to follow a certain format. Print the forms:
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On white, standard letter-sized paper ,
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In black ink only,
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With fonts no smaller than 10 point, and
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On one side of the page only.
Review your printer settings before you print. There are a lot of forms to print! If you donât have a printer at home, you can print your documents at a local library, office supply store, or UPS store. After you print your forms, donât staple them together.
You should also review your forms to make sure all the spaces are filled in. If not, you can write on your forms after theyâre printed. Write ânoneâ or ânot applicableâ in the blanks for things that donât apply to you.
Finally, make sure you sign your forms. Local rules in the Eastern District and Middle District require filers to include their address, phone number, and email beneath each signature. You may want to use blue ink to sign your forms so you can tell the original from the black and white copy. After you sign your forms, make a copy of everything for your records. You might need to refer to these later in the bankruptcy process.
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Chapter 7 Eligibility Rules
As of 2005, Chapter 7 debtors must deal with the means test. Fueled largely by banker propaganda, some lawmakers believed that debtors used credit cards to buy private islands and then filed Chapter 7. As discussed above, that’s usually not the case. But the requirement remains.
You can file Chapter 7 if your household’s income is below average. As of November 1, 2020, that amount is $85,923 for a family of four in Tennessee. The amount, which changes about every six months, varies according to household size and geographic area. For example, the cost of living is higher in Memphis or Nashville than in more rural areas of the state.
Chapter 7’s unwritten eligibility requirement also involves income. This time, it’s the income/expense balance in Schedules I and J. Unless the debtor is marginally in the red every month, the trustee might ask why the debtor has not considered other options, such as Chapter 13 or non-bankruptcy debt negotiation. No one likes unwanted questions of this nature.
Sales Debt And Bankruptcy
You may have experienced a financial hardship and now are deciding whether to file bankruptcy in Tennessee. We are sorry to hear that you are needing to read this article right now, but our goal is to explain how everything works, so you can decide whether bankruptcy is right for you. Heres what well cover:
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Is Bankruptcy Always The Right Answer
No. Honestly, bankruptcy is not always the right fit for everyone. If bankruptcy is not the right fit for you, we can assist you with other options, including negotiating a debt settlement plan, debt consolidation or loan modification. Restructuring debt or negotiating a reduced fee can work wonders to get you on the right track again.
Beginning The Bankruptcy Process
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What Is A Bankruptcy Means Test
The ultimate goal of the Bankruptcy Means Test is to determine who is eligible to apply for debt forgiveness through a Chapter 7 Bankruptcy. It considers your:
- income and expenses
- household size and composition
- debt-to-income ratio
If you do not qualify for Chapter 7 bankruptcy, you will be able to file for Chapter 13, as above-described.
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1. Learn what to do.2. Get help if you need it. 3. Get on with your life.
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An Alternative: Chapter 13 Bankruptcy
Chapter 13 bankruptcy is an option for individuals who:
- Are ineligible to file for Chapter 7 due to income limits
- Are looking to avoid foreclosure
- Simply want to stop interest accrual on their outstanding debt
Under Chapter 13, individuals can opt reorganize their debt and make regular, monthly payments to creditors over a 3 to 5 year period. After the period expires, certain debt is discharged forever.
How Much Does It Cost To File Chapter 7 Bankruptcy In Tennessee
The Chapter 7 bankruptcy cost nationwide tends to be between $500 and $3000. That said, Chapter 7 bankruptcy cost in Tennessee is different.
The Chapter 7 bankruptcy cost may even be different if you are filing in Knoxville vs. Memphis. For example, you may pay a Chapter 7 bankruptcy attorney fee of $1,170 in Knoxville, but pay a bankruptcy attorney fee of $1,200 in Nashville.
You should check the cost to file Chapter 7 bankruptcy in Tennessee for specific information about the cost in your city.
Also, there are instances where the cost to file bankruptcy can be reduced based on a filing fee waiver. You should consider seeing the information related to Tennessee filing fee waiver.
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The Different Types Of Bankruptcy
Depending on your situation, there are different types, officially known as chapters of bankruptcy, that you can file for. These different chapters of bankruptcy provide different results for different cases, and its important to have some knowledge on these chapters before filing for bankruptcy.
Filing Bankruptcy In Tennessee: 4 Things You Need To Know
You are looking to file bankruptcy in Tennessee. The most important things to understand are the process, qualification, costs, risk of losing belongings, pros and cons, and alternatives. The purpose of this article is to provide this information and personalized information based on your unique situation from our bankruptcy calculators.
Firstly, you need to know that bankruptcy is a legal debt relief option. It can help you eliminate debt, protect you from creditors, and give you a fresh start. In fact, in Tennessee, there were 17,280 from for the past year ending June 30th, 2021. Bankruptcy can even allow you to save for retirement.
You will notice that steps 1-7 below are to help you research whether and how to file for bankruptcy in Tennessee. Steps 8-15 are the actual bankruptcy process.
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Choosing The Right Bankruptcy Attorney
Though it is natural to be concerned about pricing, particularly if you are having financial difficulties, attorney fees should not be your primary concern in choosing a bankruptcy attorney. While there is some variation in attorney fees, attorney compensation is typically very small in comparison with the amount of debt that you will be clearing in a Chapter 7 case or resolving in a Chapter 13 bankruptcy. Schedule a free consultation with the bankruptcy attorney you are considering, and make sure that you are comfortable working with him or her, and feel you can rely on the attorneys knowledge and experience.
To schedule a free consultation with an experienced bankruptcy attorney at Bond & Botes, fill out the contact form on this page or call .
A Chapter 13 Bankruptcy In Tennessee
For those who make above the income limit for Chapter 7, debt relief can still come through a filing a Chapter 13 bankruptcy. A Chapter 13 Bankruptcy in Tennessee case allows you to restructure your debts into an affordable monthly plan. By restructuring debts, many people can afford to keep their homes and vehicles under Chapter 13.
Chapter 13 stops foreclosures, repossessions, and potentially stops Tennessee wage garnishments. Chapter 13 bankruptcy also allows you to pay back mortgage payments, past-due car payments, and tax debt over three to five years through a bankruptcy plan. In addition, Tennessee may also allow you to reduce unpaid child support and alimony. However, you must resume your normal domestic support payments to remain in Chapter 13.
In a Chapter 13 plan, some debtors can lower their car loan payments and erase second mortgages, if they meet certain requirements.
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Long Burnett And Johnson Pllc
If you feel like you’ve run out of options to improve your financial situation, bankruptcy might be the answer for you. Bankruptcy is often thought of in a very negative light, but there are many situations where it can improve your situation, turning your life around and giving you a fresh start.
Of course, bankruptcy is not a course of action to take lightly, so it’s important to talk to an expert bankruptcy attorney in Nashville, TN. Visit us at Long, Burnett, and Johnson, PLLC, for help determining whether this course of action is the right choice for your financial situation. Get started with a free consultation by contacting us through our website form or by dialing 386-0075.
A Note From The Founder
We hope this website provides you with valuable information to help you better understand all the options available to you when it comes to planning for monthly expenses, budgeting, and taking control of bills.
We believe that every individual and family has the responsibility of taking care of financial obligations and living up to terms of agreements with lenders.
However, we also understand that “life happens” and there are many times when unforeseen circumstances can lead to a financial shortfall each month. When this gets to the point where one feels compelled to apply for a costly loan, or even consider bankruptcy — it’s wise to learn about all available options for getting assistance.
If you’re like many people with unmanageable bills, you may not be aware of all the bill reduction options available, so we encourage you to do your due diligence, be an informed consumer, and always consider consulting with a financial management professional regarding how any bill assistance program would affect personal finances.
Finally, while it’s important to know that there are management and counseling programs to alleviate the negative impact of burdensome bills, we also encourage all visitors to take advantage of the self-help tools, financial fitness, and educational resources that are offered through this site free to all visitors.
Here’s to your financial freedom!
Walter E. Burch
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How To Get Tennessee Bankruptcy Records
Requesting parties may obtain Tennessee bankruptcy records in person at the United States Bankruptcy Court clerks office in the division or office location where the debtor has lived, worked, or had assets at least 180 days before the bankruptcy filing. Requesters may submit written requests or make oral requests at the Bankruptcy Clerks office. Requesting parties must note that the court charges fees to produce record copies. The bankruptcy courts in Tennessee also provide public-access terminals at the clerks office. In the clerks office, interested parties may research unsealed bankruptcy records using the computers and print up to ten pages. Bankruptcy Clerks office staff may assist the requesting party with other searches and additional copies for a fee.
The US Bankruptcy Courts in Tennessee also make public records available through the Voice Case Information System and Appellate Voice Information System . Using these telephone access services, requesting parties can access limited bankruptcy information. The VCIS and AVIS services use touch-tone and automated voice responses. The US Bankruptcy Courts offer the VCIS and AVIS services at no cost to the requesting party.
Understanding How Chapter 13 Bankruptcy Works
Chapter 13 bankruptcy is sometimes referred to as reorganization. It involves setting up a payment plan with the bankruptcy court to pay back either a portion of your debt or all your debt over a period of years. At the end of that time, whatever unsecured debt remains is discharged, just like a Chapter 7 bankruptcy.
Unlike Chapter 7, passing the Means Test is not necessary to qualify for Chapter 13 bankruptcy, but it will determine how long a plan will last. Generally, individuals who pass the Means Test may complete the plan in 36 months individuals whose income exceeds the Means Test are required to participate in a 60-month plan.
Chapter 13 bankruptcy offers the following benefits that are unavailable in a Chapter 7 bankruptcy:
- Catch up on debt Individuals who have fallen behind on house or car payments may file a Chapter 13 bankruptcy to get caught up on arrears while avoiding foreclosure or repossession.
- Pay off nondischargeable debt Certain debts are nondischargeable in a bankruptcy. Business tax debt and some individual income tax debt may be nondischargeable in bankruptcy. Chapter 13 plans enable individuals to pay off this debt without fear of garnishment.
- Reorganize debt People can reorganize their debt to get on firm ground again. Certain secured debts may be paid back at a lower interest rate, enabling individuals to make ends meet.
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Filing Bankruptcy In Tennessee
Youll notice from the table of the contents that we focus specifically on Chapter 7 and Chapter 13 bankruptcy. Why? Because these two types of bankruptcy are the most common bankruptcy in America . There are other types such as the Chapter 11 and Chapter 11 subchapter 5 bankruptcies, but these are far less common for consumers .
Chapter 7 bankruptcy is also known as the liquidation bankruptcy. Chapter 13 bankruptcy is also known as wage earners plan. We will cover these in greater detail
