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Memphis Bankruptcy Law Blog

Tennessee residents may not lose everything under Chapter 7

When facing financial troubles, many Tennessee residents may believe they are looking at a hopeless situation in which they will either lose their money or lose their property. However, even if individuals file for Chapter 7 bankruptcy in order to liquidate their assets, there is potential for certain property to be exempt from the filings. As a result, individuals may be able to maintain ownership of that property while also taking care of their debt issues.

One man in another state is currently attending to such a matter after recently filing for Chapter 7. Reports stated that the man was a former politician who is now incarcerated due to a theft conviction. Nonetheless, the man was able to file for bankruptcy in order to address over $300,000 in debt. That amount stems from credit card balances and personal loans. 

Alternatives to bankruptcy may not suit Tennessee residents

When Tennessee residents are consumed with debt, they may wish to explore their options for potentially discharging that debt. Many parties may want to look into alternatives to bankruptcy due to fear that their credit scores could be considerably damaged or that they could face other negative impacts. However, bankruptcy could be beneficial, especially when debt management plans may not be the best route.

Debt management plans are typically used with credit counseling agencies in attempts to have outstanding debt balances paid off. However, the process could be lengthy, and individuals may not have the protections that bankruptcy could offer. Additionally, if an individual misses a payment for their management plan, it is possible that the plan could be canceled. Depending on the circumstances of an individual case, bankruptcy may be a more feasible option.

Chapter 13 may help with foreclosure in Tennessee

No one wants to be at risk of losing their home. Unfortunately, some Tennessee residents may face foreclosure if they fall significantly behind on their mortgage payments. In these cases, individuals may wonder if there are any options to stop such action from taking place. Luckily, individuals who qualify may be able to file for Chapter 13 bankruptcy in order to protect their homes from foreclosure.

Missing payments does not necessarily mean that individuals do not want to make the payments or are hoping to avoid paying off debt. Some parties may fall on hard times due to job loss, medical expenses or other financial blows. If a foreclosure notice has been served, individuals may wish to explore their options in a timely manner before foreclosure proceedings are set in motion.

Tennessee residents may want to learn about Chapter 7 means test

In order to file for bankruptcy, individuals must first qualify. For Chapter 7, a means test must first be passed. This test utilizes personal information pertaining to income, expenses and other financial and personal factors to determine whether an individual will qualify. If Tennessee residents are worried about passing such a test, it may assuage their apprehensions to understand that the majority of individuals seeking this chapter of bankruptcy pass the test easily.

The test has two parts that are used to determine eligibility. First, the test will examine the individual's household income to determine whether the income level is below the state's median level. The test examines the last six months of financial information, so having documents pertaining to that time period could prove useful. If the income level is below the state median, the petitioner will be allowed to file for Chapter 7. 

Bankruptcy may be useful to Tennessee residents with medical debt

Facing medical debt is an issue that affects many Tennessee residents. The costs of treatments may cause individuals to wonder whether they could be treated without having to contend with serious financial burdens. Luckily, if patients do find themselves in stressful positions due to medical expenses, they could potentially qualify to have those debts discharged through bankruptcy

Individuals who are struggling with this type of debt are not alone. Of individuals surveyed, 67 percent stated that they worried about being able to afford medical treatment. Additionally, of parties who had suffered an unexpected illness or injury, 63 percent believed that the costs resulted in their facing financial burdens, some of which were considered serious. As a result, debt issues relating to medical expenses are not uncommon.

Christian Laettner Chapter 7 case may interest Tennesseans

It is not uncommon for individuals to become resistant to situations if they feel they have been pushed into a corner. Even if a potential suggestion could be beneficial, Tennessee residents may balk at an idea if they feel they are being forced into the decision. Some individuals may feel such opposition if they are faced with an involuntary Chapter 7 bankruptcy petition. However, bankruptcy could prove valuable to those struggling with considerable debt. 

Christian D. Laettner -- a former professional basketball player -- is currently facing a similar situation. Reports stated that five creditors are hoping to force Laettner into bankruptcy. The man's obligations were described as business debts and apparently had to do with real estate development that did not prove fruitful. As a result, he is reportedly facing more than $14 million in debt.

Chapter 7 may help with student loan debt in Tennessee

Many individuals facing student loan debt may feel as if they will be stuck with it for the rest of their lives. It is not unusual for this type of debt to consist of hundreds of thousands of dollars, and some Tennessee residents may begin to wonder whether the education was worth the cost. However, rather than thinking in such a manner, parties may wish to look into potentially discharging the debt through Chapter 7 bankruptcy.

It is commonly heard that student loan debt cannot be discharged through bankruptcy. As a result, many individuals with overwhelming debt may not even try to have their debt forgiven. It was recently reported that less than 1 percent of individuals attempted to have their student loans discharged in 2007, but of those who did, nearly 40 percent saw at least some relief. 

Medical emergencies may lead to bankruptcy in Tennessee

It is no secret that the cost of medical treatments can leave individuals struggling financially, especially if the situation arose from an unexpected emergency. Individuals without insurance could be particularly vulnerable, but those with insurance may also find themselves with substantial costs that were left uncovered by their policies. In either case, bankruptcy may be worth exploring if medical debt becomes too much to handle. 

Tennessee residents may be interested in a situation taking place in another state where a family is struggling with medical expenses. It was reported that a 16-month-old child had been playing outside when he was bitten by a copperhead snake. His foot began to bleed and swell, which led to his mother taking him to the emergency room for treatment. 

Tennessee residents may consider Chapter 7, Chapter 13

Feeling overwhelmed with debt is a common issue that many Tennessee residents face. Luckily, dealing with debt does not have to seem out of reach as there are relief options such as Chapter 7 and Chapter 13 bankruptcy that could assist qualifying individuals. Of course, there are certain stipulations that could play a role in which bankruptcy may be right for a particular person.

Chapter 7 is also known as liquidation bankruptcy. Personal assets are liquidated in order to apply the proceeds to outstanding debts. Liquidation does not have to seem like a frightening process, though, because certain assets are exempt from such proceedings in Tennessee. With this type of bankruptcy, there are some debts that could be entirely discharged.

Chapter 7 could help Tennessee residents move forward

Many Tennessee residents have likely faced the difficulties that come along with financial struggles. In many cases, these struggles result from substantial debt that leaves little room for monetary flexibility. If individuals would like to take a step toward ridding themselves of most or all of such debt, they may wish to consider filing for Chapter 7 bankruptcy.

One man in another state recently took such action in order to address his finances. The man is reportedly a neurologist who is currently facing legal troubles due to suspicions surrounding his prescribing of opioids. The investigation resulted from over 64 patients dying of apparent drug overdoses over a five-year span. As a result, the man's medical license was revoked. However, it is unclear whether this revocation may have contributed to his financial distress.