Introduction
Filing for bankruptcy can be a complex and overwhelming process, but it can provide individuals and businesses in Tennessee with a fresh start and relief from overwhelming debt. This article will guide you through the steps involved in filing bankruptcy in Tennessee, helping you understand the process and navigate the legal requirements.
Types of Bankruptcy
Before diving into the process, it’s important to understand the different types of bankruptcy available in Tennessee. The most common types are Chapter 7 and Chapter 13 bankruptcy.
Chapter 7 Bankruptcy: Chapter 7 bankruptcy, also known as liquidation bankruptcy, allows individuals or businesses to discharge most of their debts. However, certain assets may be sold to pay off creditors. To qualify for Chapter 7 bankruptcy, you must pass the means test, which evaluates your income and expenses.
Chapter 13 Bankruptcy: Chapter 13 bankruptcy, also known as reorganization bankruptcy, allows individuals to create a repayment plan to pay off their debts over a period of three to five years. This type of bankruptcy is suitable for individuals with a regular income who want to keep their assets and catch up on missed payments.
Pre-Filing Requirements
Before filing for bankruptcy in Tennessee, there are several pre-filing requirements that must be met:
Credit Counseling: Under the Bankruptcy Abuse Prevention and Consumer Protection Act, individuals must complete credit counseling from an approved agency within 180 days before filing for bankruptcy.
Bankruptcy Forms: You will need to gather and complete the necessary bankruptcy forms, including the petition, schedules, and statements, which provide detailed information about your financial situation.
Means Test: If you are considering Chapter 7 bankruptcy, you must complete the means test to determine if you qualify based on your income and expenses.
Filing the Bankruptcy Petition
Once you have completed the pre-filing requirements, you can proceed with filing the bankruptcy petition. This involves the following steps:
Choose a Bankruptcy Court: Determine which bankruptcy court in Tennessee has jurisdiction over your case based on your county of residence. The state of Tennessee has three bankruptcy districts: Eastern, Middle, and Western.
Complete the Petition: Fill out the bankruptcy petition, schedules, and statements accurately and honestly. Provide detailed information about your assets, debts, income, expenses, and any other relevant financial information.
File the Petition: Submit the completed petition to the appropriate bankruptcy court along with the required filing fee. If you cannot afford the fee, you may be eligible for a fee waiver.
Meeting of Creditors and Bankruptcy Discharge
After filing the bankruptcy petition, you will attend a meeting of creditors, also known as a 341 meeting. During this meeting, the bankruptcy trustee and your creditors have the opportunity to ask you questions about your financial affairs.
Following the meeting of creditors, you will need to complete a debtor education course before receiving a bankruptcy discharge. The discharge is the court’s order that releases you from personal liability for certain debts and prohibits creditors from taking any further collection action.
Conclusion
Filing for bankruptcy in Tennessee can be a complex process, but understanding the steps involved can help alleviate some of the stress. By familiarizing yourself with the types of bankruptcy, pre-filing requirements, and the filing process, you can navigate the bankruptcy system more effectively and work towards a fresh financial start.
References
– United States Courts: www.uscourts.gov
– Tennessee Bankruptcy Court: www.tnwb.uscourts.gov
– Legal Aid Society of Middle Tennessee and the Cumberlands: www.las.org
