Residents of Tennessee who find that they require a fresh financial start may consider filing for Chapter 7 bankruptcy. A successful Chapter 7 results in the court discharging a debtor’s financial responsibility to pay back his or her unsecured debt. Often, the debtor may end up paying back very little of the debts he or she incurred. In fact, some debts may not need to be repaid at all.
Those seeking Chapter 7 bankruptcy may see their assets liquidated in order to pay back a portion of their debt to creditors. A Chapter 7 Trustee will sell an individual’s assets in order to obtain funds for both secured and unsecured creditors. The Trustee may even “carve out” funds from the sale of a secured debt such as a home and take some of this money to pay back unsecured creditors. A Trustee is able to use his or her connections to sell property quickly.
Once people have decided to file for bankruptcy, they may fear that they will lose their home or their car. The fact is that this does not have to be the case. Those who file for Chapter 7 may be able to keep enough of their current assets that their lives will not change too drastically.
Before filing for Chapter 7 bankruptcy, an individual should fully understand the legal process and the rules of bankruptcy law. While an individual can file for bankruptcy on his or her own, the process is complicated, and any mistake can result in significant delay. Some errors can even lead to dismissal of a case. It is best to consult an expert when considering Chapter 7 bankruptcy. Experienced legal counsel may be able to assist those who find themselves in overwhelming debt.