Are your bills mounting? You’ve paid minimum payments for months and months, but you never seem to get caught up, much less ahead.

Perhaps you’ve received a notice of foreclosure or repossession?  Maybe you have been served with a lawsuit.

More Money Problems

If one or more of these things have happen to you, perhaps its time to consider a Chapter 7 bankruptcy.

As a Knoxville Bankruptcy Attorney, I’m proud to say that the US Congress has declared our firm to be a “Debt Relief Agency.”

Why?  Because we help people file bankruptcy.

After over 25 years filing bankruptcy cases of every kind, we know the challenges you are facing, the embarrassment over the inability to pay your bills, and the stress that’s caused by creditors calling and calling.

When I file your bankruptcy case the court immediately issues an injunction that prohibits creditors from contacting you or taking any action to collect their debt.  That’s a good thing!

So What Is Chapter 7 Bankruptcy?

Although Chapter 7 bankruptcy is often referred to as a liquidation bankruptcy, for most of our clients they LOSE NO PROPERTY IN THE BANKRUPTCY.

That’s a good thing.

In the Chapter 7 bankruptcy all of your unsecured debts (debts for which the creditor did not retain a lien like in a car loan) are discharged.  Certainly, there are specific exceptions for student loans, taxes, child support payments and criminal fines, including traffic tickets.

But for most of our clients they get complete debt relief except for their car and their house.

An experienced bankruptcy lawyer can help evaluate your assets and determine whether you qualify for a Chapter 7 bankruptcy or whether you should consider Chapter 13.    Since you have a personal property exemption of $10,000 (this means two times $10,000 for couples) most of the property you own will not be subject to the claims of creditors.  As a result, most of our clients do not lose any property in their Chapter 7 bankruptcy.

Since the moment you file an automatic injunction issues (called the automatic stay) will be issued.  This effectively stops foreclosure, repossession, creditor lawsuits, creditor harassment and wage garnishment.  That’s a good thing!

About 30 days after you file bankruptcy, you will have a creditors meeting.  This is often referred to as the 341 creditors meeting.

You are required to attend this meeting or your case will be dismissed.  At that meeting the Chapter 7 Trustee wants to know if you have any assets that can be sold to pay your creditors.  (This is where the exemptions come into play.  Most of our clients exempt all of their assets from the Chapter 7 trustee.)  The Chapter 7 trustee also wants to know, “Did you tell the truth?”

Everything you do and say in a bankruptcy case is under penalty of perjury.  So you’ve absolutely got to tell the truth.

About 90 days from your creditors meeting you’ll get a bankruptcy discharge.  This is a bankruptcy court order that says you no longer owe the debt.  That’s a good thing.

If you are considering bankruptcy, contact Knoxville Bankruptcy Attorney Dan Scott

If you have a small business and are wondering where to turn, be sure to seek the advice of an experienced bankruptcy attorney. We help individuals and businesses from Knoxville, Sevierville, Maryville and Jefferson City evaluate the options available during these difficult times.  Call and set up a free consultation with Knoxville Bankruptcy Attorney Dan Scott at 865-246-1050 today.

Photo Credit:  Flickr: espnensorvik