Lefkovitz & Lefkovitz
Nashville Office 615-686-2279 Cookeville Office 931-400-2218
Serving all of Middle Tennessee's Bankruptcy Needs

What to know about Chapter 7

Tennessee residents who are considering filing for bankruptcy may have several available options. One possibility is to file for Chapter 7 bankruptcy, which is also referred to as a liquidation bankruptcy. In this type of filing, nonexempt assets are sold off with the money used to repay creditors. A key benefit of Chapter 7 protection from creditors is that debts are generally discharged in a matter of months as opposed to a matter of years.

This is beneficial because lenders generally won't want to work with debtors until after the bankruptcy case is over. However, a debtor will need to pass a means test to qualify for Chapter 7 protection from creditors. Generally speaking, those who have little or no disposable income will be allowed to file while others will need to file for Chapter 13 protection instead.

While there are many potential benefits to filing for Chapter 7 bankruptcy, there are also several downfalls. For instance, a credit score typically falls after a filing, and an individual may face limited options when applying for credit. Those who are struggling to repay debt are encouraged to reach out to their lenders first. It's often possible to make alternate arrangements to avoid a foreclosure or repossession.

Individuals who are seeking debt relief may be able to find it by filing for bankruptcy. An attorney could explain the benefits, such as putting an end to creditor contact. Furthermore, a repossession or foreclosure may be postponed while the case is ongoing. Certain debts that are not repaid in full could be discharged at the end of a liquidation or reorganization bankruptcy case. Filing for bankruptcy may also provide a chance to renegotiate existing secured loan repayment terms.

No Comments

Leave a comment
Comment Information

We Look At Your Case From Every Angle To Find The Solution That Is Right For You

Bankruptcy help for everyone, from the most simple to the most complex cases.

Call Us Now To Schedule A Free Initial Consultation

Contact our Nashville office at 615-686-2279 or our Cookeville office at 931-400-2218. You can also reach us via email to set up a time to talk to us about your debts.

Get Legal Help Now

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Nashville Office
618 Church Street, Suite 410
Nashville, TN 37219

Phone: 615-686-2279
Fax: 615-255-4516
Nashville Law Office Map

Cookeville Office
312 East Broad Street, Suite A
Cookeville, TN 38501

Phone: 931-400-2218
Fax: 931-526-6244
Cookeville Law Office Map

Back To Top