How Does Bankruptcy Work?

Tennessee Bankruptcy Filing:

What I Need to Know about Filing for Bankruptcy in Tennessee

A Family-Operated Law Firm that Cares about You

While bankruptcy can sometimes carry with it a certain social stigma - i.e., only the irresponsible file for bankruptcy - statistics prove those stereotypes to be utterly unfounded. The vast majority of those who file for bankruptcy do so because of insurmountable medical bills, job loss, or the financial chaos brought on by divorce.

At Nimmo Hoehn & Nimmo, we understand that if you're even thinking of filing for bankruptcy, you're under heavy enough stress as it is. Many of our clients come to us afraid of losing their home, with budgets so tight that it borders on being unhealthy. Contact Nimmo Hoehn & Nimmo today, and we can help free you from the burden of insurmountable debt. For more information, read on below or see our Frequently Asked Questions.

Step One: Filing for Bankruptcy and the "Automatic Stay"

There are two types of personal bankruptcy, Chapter 7 and Chapter 13. For more information about which plan is best for you, follow this link. As soon as you file for bankruptcy, the courts will grant you what is called an "automatic stay." This means that all your creditors must immediately discontinue any and all attempts at collection: no more phone calls, and no more threatening letters.

Step Two: The Meeting of the Creditors

After you file for bankruptcy, a trustee will be assigned to your case to determine - depending on whether you filed for Chapter 13 or Chapter 7 bankruptcy - the nature of your payment plan, or which of your assets will be exempt from collection. This trustee will investigate your finances, and will organize a "meeting of the creditors" 2-3 months down the road.

This meeting will likely be your only court appearance, and you will be asked to give certain testimony under oath. Your creditors or their representatives may be present.

Step Three: Discharging Your Debt

Within 45 days of the meeting of the creditors, you will have to attend and complete a financial management course. After that, your debts are wiped clean forever, and you can get the fresh start you've been waiting for. However, certain debts cannot be discharged, including taxes, domestic support payments, and student loans.

If you're thinking of filing for bankruptcy and would like more information, contact Nimmo Hoehn & Nimmo today and set up a free initial consultation.