Tell us more about your case so that we can show you lawyers that serve your area.
The Tennessee Economic Situation
Tennessee as a whole isn’t projected to be back to the peak reached in late 2007 until the second quarter of 2012. Hit hard by the decline in manufacturing, transportation and trucking, net job growth is expected to begin to slowly recover by the second quarter of 2010. Bankruptcies filed in 2008 hit record levels with over 47,000 in Tennessee alone, and over 98% of those filed by consumers. It is estimated that 1.4 million consumer bankruptcies will be filed in the U.S. in 2009, the surge triggered by the foreclosure crisis and economic downturn. Debt relief through bankruptcy is short lived however, as most of these individual possessed non-dischargeable debts that are now under a court mandated repayment plan.
Find an Experienced Tennessee Bankruptcy Attorney
The Federal Bankruptcy Law involves processes, procedures and evaluations which can be complex and confusing. Seek the advice of an attorney/law firm with specific long-term experience in Tennessee bankruptcy matters. Check references, if possible. A competent attorney will help you weigh your different options, make informed decisions, help you protect the security of your family and reduce your stress, while facing the realities of the situation.
Major Changes Made in 2005 Will Impact your Tennessee Bankruptcy
Because of bankruptcy filing abuses, the law was changed in 2005 to include the following:
Chapter 7 is the “fresh start” chapter of the Bankruptcy Code and most commonly used. This filing results in a fair Distribution of your available nonexempt property to creditors. Unsecured debts are generally discharged. Included in this process is a “means test”, used to determine your ability to pay your creditors, verifying whether Chapter 7 is appropriate or indicating that you should be filing Chapter 13. Median Family Income by Family Size and current poverty guidelines are factors evaluated when determining appropriate filing status for a given situation.
Not All Debts May Be Discharged in Your Tennessee Bankruptcy:
· Taxes owed to government agencies, such as the I.R.S., State of Tennessee, etc.
· Student loans (unless undue hardship can be proved),
· Debts incurred after the bankruptcy is filed
· Debts owed to a spouse for divorce-related obligatory expenses
· Debts not listed or scheduled or which the debtor waived discharge
· Debts for willful and malicious injury by the debtor to another person or property owned by another
Final Words for the Tennessee Bankruptcy Filer
Tennessee residents continue to suffer, as the State’s economy struggles to recover. Decisions you make and actions you take now can have a positive or negative effect on the outcome of your bankruptcy proceedings. The U.S. Bankruptcy Court warns that“Bankruptcy has long-term financial and legal consequences - hiring a competent attorney is strongly recommended.”Click here to find Tennessee attorney resources in your area.