Lefkovitz & LefkovitzLefkovitz & Lefkovitz2026-04-30T09:30:31Zhttps://www.lefkovitz.com/feed/atom/WordPress/wp-content/uploads/sites/1302442/2020/03/cropped-LL_FAVICON_512x512_MAR20-32x32.jpgOn Behalf of Lefkovitz & Lefkovitz<![CDATA[Will I Lose My Property if I File for Bankruptcy?]]>https://www.lefkovitz.com/?p=514252025-02-20T09:55:36Z2022-10-11T08:32:03Zfiling for bankruptcy are concerned about whether they will be at risk of losing all of their property if they do decide to file. It is critical to know that there is no type of bankruptcy filing in which a debtor will automatically lose all of their property. To be sure, even in Chapter 7 bankruptcies, which are liquidation bankruptcies, a debtor should know that there are specific exemptions that allow them to keep certain property up to an allowed amount from being liquidated. In a number of Chapter 7 cases, no assets are liquidated at all due to the debtors not having assets that exceed their exemptions. Then, in a Chapter 13 bankruptcy case, excess assets, over and above the debtor’s exemptions, can be protected rather than liquidated under certain circumstances. As such, in a Chapter 13 case or another type of reorganization bankruptcy, you should not assume that you will automatically lose all of your property because of the bankruptcy filing. In fact, in some circumstances, filing for a reorganization bankruptcy can allow you to keep property that you otherwise might lose without filing for bankruptcy.
Our Nashville & Cookeville bankruptcy lawyers can provide you with more information.
Bankruptcy Exemptions May Allow You to Keep Assets in a Chapter 7 Bankruptcy
Under Tennessee law, consumer debtors who file for Chapter 7 bankruptcy can generally rely on a wide variety of exemptions that allow them to “exempt” property. When property is exempt according to the Tennessee bankruptcy exemptions, the debtor can keep it, and it will not be liquidated as part of the Chapter 7 bankruptcy case. Only non-exempt property can be liquidated. What types of assets should you expect to keep? The following is a list of some exemptions, but it is not exhaustive. As such, you should always speak with a bankruptcy attorney about your circumstances and which assets you should expect will be exempt in your bankruptcy case. Here are some common bankruptcy exemptions in Tennessee:
Up to $10,000 of personal property of your choosing aside from real estate in an
individual case;
Necessary clothing;
Family photos;
School books and a Bible;
Tools of the trade;
Retirement benefits through the Tennessee Consolidated Retirement System;
Other retirement and pension plans;
You Have More Options to Protect Assets Because You Filed for Chapter 13 Bankruptcy
In a Chapter 13 bankruptcy case, you have more options to protect your assets versus a Chapter 7 filing. Since this type of bankruptcy is known as a reorganization bankruptcy or a “wage earner’s plan,” a Chapter 7 Trustee is not appointed to liquidate the debtor’s assets over and above the debtor’s exemptions. Instead, the debtor can reorganize his or her debts through a repayment plan, and protect certain assets that otherwise could be liquidated in a Chapter 7 case in certain circumstances. In a Chapter 13 bankruptcy case, the debtor typically makes regular monthly payments over a period of three to five years.
Additionally, when debtors are at risk of home foreclosure or repossession of property associated with secured debts, like a motor vehicle, it may be possible to keep these assets that otherwise could be lost without the bankruptcy filing. The automatic stay can generally stop a foreclosure or repossession action from going forward, upon filing a bankruptcy, and then the debtor can reorganize and catch up on missed payments through the terms of a Chapter 13 repayment plan.
Contact a Middle Tennessee Bankruptcy Attorney
Do you need assistance with a Chapter 7 or Chapter 13 bankruptcy case? Our Middle Tennessee bankruptcy attorneys are here to help. Contact Lefkovitz & Lefkovitz online, or call our lawyers in Nashville or Cookeville at [nap_phone id="LOCAL-REGULAR-NUMBER-6"].]]>On Behalf of Lefkovitz & Lefkovitz<![CDATA[What is the Automatic Stay?]]>https://www.lefkovitz.com/?p=514162025-02-20T09:52:21Z2022-08-08T17:56:38ZHow the Automatic Stay Protects Debtors in a Bankruptcy Case
Generally, as soon as you file for bankruptcy—whether you file for Chapter 7 bankruptcy, Chapter 11, or Chapter 13 bankruptcy, or another type of bankruptcy—the automatic stay can at least temporarily put a halt to a number of debt collection actions. Depending upon the type of bankruptcy case and the specific financial issues involved, the automatic stay might be able to stop debt collection actions for the duration of the bankruptcy proceedings. The following examples are among the most important actions that the automatic stay can prevent or stop:
Foreclosure: If you are facing foreclosure, the automatic stay can prevent a foreclosure from moving forward. In a Chapter 7 bankruptcy case, the halt to the foreclosure proceeding is normally temporary, and could still result in the sale of your home by a Chapter 7 Trustee. However, if you file for Chapter 13 bankruptcy, the automatic stay can stop a foreclosure, and offers a reorganization plan to allow you to catch-up on your mortgage payments over time and remain in your residence without the looming risk of To be clear, in Chapter 13 bankruptcy cases, the automatic stay stops foreclosure and the homeowner ultimately can keep their home.
Eviction: When you rent your home and are at risk of being evicted, the automatic stay can temporarily halt an eviction action, and potentially offer an option to remain in the lease depending on the
Civil lawsuits: The automatic stay prevents a creditor or debt collector from suing you or moving forward with a lawsuit against
Repossessions: If you have a vehicle, the automatic stay can temporarily halt a repossession to allow you to keep your automobile, for example, as your bankruptcy case moves
Wage garnishments: Once the automatic stay takes effect, future wages garnishments can usually be
Limitations to the Automatic Stay
There are some types of debt (and debt collection actions for those debts) that are not included in the protections associated with the automatic stay under the U.S. Bankruptcy Code, but can be protection upon confirmation of reorganization plan under the bankruptcy code.
Contact a Middle Tennessee Bankruptcy Attorney
Do you want to learn more about how the automatic stay can protect you in your bankruptcy case? Do not hesitate to contact a Tennessee bankruptcy attorney at Lefkovitz & Lefkovitz. Our firm serves all of Middle Tennessee’s bankruptcy needs, and we can speak with you today.Contact us online or call us in Nashville or in Cookeville at [nap_phone id="LOCAL-REGULAR-NUMBER-6"].]]>On Behalf of Lefkovitz & Lefkovitz<![CDATA[What are Bankruptcy Exemptions and How are They Used?]]>https://www.lefkovitz.com/?p=514092025-03-24T13:57:25Z2022-07-05T18:05:43ZHow Bankruptcy Exemptions Work
How do bankruptcy exemptions work in different types of bankruptcies? Let’s focus on Chapter 7 and Chapter 13.
In a Chapter 7 bankruptcy, exemptions allow debtors to keep assets that will not have to be liquidated in their bankruptcy case. When a debtor files for Chapter 7 bankruptcy, all nonexempt assets can be liquidated in order to repay creditors and if the creditors are not paid in full often the goal is to discharge the remaining debts. Debtors may worry that they will lose all of their assets, but this is where bankruptcy exemptions come in. There are many different types of exemptions that allow debtors to keep a wide range of assets, from equity in a home to multiple kinds of personal property. If an asset is exempt, then the expectation is that it will not be liquidated, and the debtor can keep that property after the bankruptcy case. In a Chapter 13 case, non-exempt assets can be retained by the debtor instead of liquidated through a reorganization plan that typically lasts from three to five years. In determining the amount of the monthly payment on the repayment plan, the debtor is required to repay at least the net value of non-exempt property that is being retained.
Commonly Used Bankruptcy Exemptions Under Tennessee Law
Tennessee law has a wide range of bankruptcy exemptions, and it will be important to speak with a bankruptcy lawyer about the particular exemptions that may be applicable to your case. Here are some examples of exemptions used in Tennessee:
Homestead exemption, which allows a homeowner to exempt up to $35,000 of equity in a
residence for a single owner in an individual case (the amount can increase depending on
the ownership structure);
Personal property exemption, which allows debtors to exempt up to $10,000 in any asset
or assets of their choosing other than real estate;
Clothing exemption, which allows the debtor to exempt the clothing;
Family photos are exempt;
There are many other exemptions, as well, that may be applicable to your case.
Seek Advice from Our Middle Tennessee Bankruptcy Lawyers
Do you have questions about bankruptcy exemptions, or do you need assistance with your bankruptcy case? A Tennessee bankruptcy lawyer at our firm is here to help. We serve all of Middle Tennessee’s bankruptcy needs with offices in Nashville, Tennessee, and Cookeville, Tennessee. Contact [nap_names id="FIRM-NAME-1"] online at www.lefkovitz.com or call us at our Nashville office ([nap_phone id="LOCAL-CT-NUMBER-8"]) or our Cookeville office ([nap_phone id="LOCAL-CT-NUMBER-5"]) today]]>On Behalf of Lefkovitz & Lefkovitz<![CDATA[Chapter 7 Versus Chapter 13 Bankruptcy: Important Differences to Know]]>https://www.lefkovitz.com/?p=514112025-02-20T09:30:37Z2022-06-06T18:22:36ZBoth Types of Bankruptcy are Generally Available for Individuals
Both Chapter 7 and Chapter 13 bankruptcy are types of bankruptcy for which consumers or individuals generally can be eligible. Although Chapter 7 is also available to businesses, it is a common type of bankruptcy for individual debtors who can meet the eligibility requirements. Chapter 13 bankruptcy is also generally available for individuals, but not corporations.
Chapter 7 Bankruptcy is a Type of Liquidation Bankruptcy
Under the U.S. Bankruptcy Code, Chapter 7 bankruptcy is a type of liquidation bankruptcy. This means that all non-exempt assets of an individual debtor will be liquidated to repay creditors, and the debtor will be eligible to have debts discharged. It is important to know that you certainly will not lose all of your assets in a Chapter 7 case. A wide variety of assets are “exempt,” which means they cannot be liquidated in a Chapter 7 bankruptcy case, and a lot of Chapter 7 bankruptcy cases are “no-asset” cases as a result, which means no assets were liquidated to repay creditors.
Chapter 13 Bankruptcy is a Type of Reorganization Bankruptcy
Chapter 13 bankruptcy is a kind of reorganization bankruptcy. What this means is that a debtor creates a repayment plan through which debts are reorganized and paid over a period of three to five years. After that point, if the debtor fulfills the terms of the repayment plan, remaining debt can generally be discharged. Since this is not a type of liquidation bankruptcy, debtors have more options for keeping their non-exempt assets.
The Impact of the Means Test for Chapter 7 or Chapter 13 Bankruptcy
Typically, to be able to successfully file for Chapter 7 bankruptcy, you must pass the “means test” to show that your disposable income is low enough that a Chapter 7 bankruptcy is appropriate. Otherwise, if you have sufficient disposable income to pay on your debts over time, you might be required to file Chapter 13 bankruptcy.
Contact a Middle Tennessee Bankruptcy Attorney
If you have any questions about Chapter 7 versus Chapter 13 bankruptcy, or you need assistance determining your eligibility and filing for bankruptcy, our Middle Tennessee bankruptcy attorneys are here to assist you. We have offices in Nashville and Cookeville, and we serve all of Middle Tennessee’s bankruptcy needs. Contact Lefkovitz & Lefkovitz online today, or call us in our Nashville office or in our Cookeville office at [nap_phone id="LOCAL-REGULAR-NUMBER-6"].]]>On Behalf of Lefkovitz & Lefkovitz<![CDATA[Student Loans and Bankruptcy: Key Updates in 2022]]>https://www.lefkovitz.com/?p=514052025-02-20T09:44:39Z2022-05-06T10:08:06Zbankruptcy but wondering if you could be eligible to have your student loans discharged. There are many myths and misconceptions about personal bankruptcy and student loans, including the frequently cited myth that student loans cannot be discharged through a Chapter 7 or Chapter 13 consumer bankruptcy case. Our Nashville & Cookeville bankruptcy attorneys want to make clear that student loan debt can in select situations be discharged if you file for bankruptcy, but you will need to take additional steps in order to be eligible to have that debt discharged.
“Busting myths” about student loans and bankruptcy is the topic of a recent press release from the Consumer Financial Protection Bureau (CFPB). Our Tennessee bankruptcy lawyers want to discuss the press release and key updates concerning student loans and bankruptcy discharges.
Student Loans Can be Eligible for Discharge in Bankruptcy, and the Process Could GetEasier
Currently, even without any changes to existing bankruptcy law, it is possible to have student loans discharged in a consumer bankruptcy case. However, unlike other forms of unsecured debt like credit card or medical debt, to be eligible to have student loans discharged, the debtor must be able to show an “undue hardship.” In order to prove an undue hardship, you must prove three
factors:
● You will not be able to maintain a minimal standard of living if you continue repaying
student loans;
● Your current financial circumstances are likely to last; and
● You have made a good faith effort to repay your loans.
None of this has changed. However, changes could be coming in the near future concerning the discharge of student loans in personal bankruptcy proceedings. Legislation known as the Fresh Start Through Bankruptcy Act, is currently pending in Congress and has bipartisan support. If that legislation passes, it would allow debtors to discharge certain student loan debt in bankruptcy 10 years after the first payment came due on those loans without the debtor having to pass the undue hardship requirement. Some federal lawmakers have gone further in suggesting changes to U.S. bankruptcy law that could come about in 2022 or later.
Some Creditors are Attempting to Collect Discharged Debt, in Violation of Debtor Rights and U.S. Bankruptcy Law
Beyond the fact that some changes could be coming to U.S. bankruptcy law to make it easier to discharge student loan debt through bankruptcy, it is also important to know that the CFPB has been receiving reports of creditors attempting to collect discharged student loan debt. After debtors have gone through the bankruptcy process and proven an undue hardship to have student loans discharged, they are being contacted by creditors or debt collectors attempting to collect.
As the CFPB press release underscores, these attempts are violations of discharge orders. It is critical for debtors who have had student loan debt discharged to know that student loan companies are not allowed to attempt to collect discharged debts.
Contact Our Tennessee Bankruptcy Lawyers in Nashville and Cookeville
Do you have questions about student loan debt and bankruptcy? One of the experienced bankruptcy attorneys in Tennessee at our firm can speak with you today about your
circumstances. Contact Lefkovitz & Lefkovitz by going online at www.lefkovitz.com, or call us at our Nashville office or at our Cookeville office at [nap_phone id="LOCAL-REGULAR-NUMBER-6"] to learn more about the services we provide in Middle Tennessee.]]>On Behalf of Lefkovitz & Lefkovitz<![CDATA[Bankruptcy for Business Owners: Five Things to Know]]>https://www.lefkovitz.com/?p=513912025-03-24T13:58:43Z2022-03-29T05:56:45Z1. Businesses Typically File for Chapter 11 or Chapter 7 Bankruptcy
In most cases, businesses that are filing for bankruptcy will file for either Chapter 11 bankruptcy or Chapter 7 bankruptcy. These two types of bankruptcy both allow businesses to come to terms with their debts, but there are many important distinctions between them. Chapter 7 bankruptcy is a type of liquidation bankruptcy, so it is for business owners who understand the business needs to close and remaining assets that are of value must be liquidated to repay creditors. Chapter 11 bankruptcy is a type of reorganization bankruptcy that allows the business to reorganize its debts.
2. Chapter 11 Bankruptcy Can Allow Your Business to Continue Operating
While a Chapter 7 bankruptcy requires a business to close, many businesses that need bankruptcy protection want to file for Chapter 11 bankruptcy because it is a type of bankruptcy that allows a business to continue operating while getting back on track with debts. To be clear, a business in Chapter 11 bankruptcy does not have to close, but instead can develop a plan for repaying business debts over a period of time while keeping its doors open.
3. Chapter 7 Bankruptcy is Available for Individuals but Handled Differently for Businesses
Both individuals and corporate businesses can file for Chapter 7 bankruptcy, but the cases are handled differently. For an individual’s Chapter 7 bankruptcy, that individual must pass the “means test” and will be eligible to have debts discharged at the end of the case. For a corporate
business, there is no need to pass the means test, and there is no need for a debt discharge at the end of the case since the corporation is no longer operating and all the assets of value have been administered by a Chapter 7 Trustee.
4. Sole Proprietorships Have Important Distinctions to Consider
If your business is a sole proprietorship, you will need to approach bankruptcy differently than other business owners since you and your business are the same legal entity. In other words, filing for business bankruptcy will mean filing a personal bankruptcy, or vice versa. Accordingly, sole proprietors who file for Chapter 7 bankruptcy will need to consider issues for consumers, but they also may be eligible for Chapter 13 bankruptcy or Chapter 11 bankruptcy.
5. Business Owners Filing for Consumer Bankruptcy May Have Special Considerations
Depending upon the structure of your business, filing a personal bankruptcy ultimately could affect your business—especially if your business is a sole proprietorship for the reasons discussed above. You should seek advice from a lawyer about your situation.
Contact Our Middle Tennessee Bankruptcy Lawyers Today
If you are a business owner and you have questions about filing for bankruptcy, it is important to seek advice from an experienced Middle Tennessee bankruptcy attorney who can assist you with your case. Our firm can help you to determine the right course of action for your business. Do not hesitate to get in touch with us to find out more about how we can assist you. Contact [nap_names id="FIRM-NAME-3"] online today for more information. You can also reach us by phone in our Nashville Office [nap_phone id="LOCAL-CT-NUMBER-8"] or Cookeville Office [nap_phone id="LOCAL-CT-NUMBER-5"].]]>On Behalf of Lefkovitz & Lefkovitz<![CDATA[3 myths about bankruptcy and your credit score]]>https://www.lefkovitz.com/?p=512282021-09-13T22:21:59Z2021-09-13T22:21:59Zthree common myths about bankruptcy that many people believe to be true.
Bankruptcy on your record will ruin your credit forever: While bankruptcy will drop your credit score initially, it is possible to improve your rating over time. Tips include getting a secured credit card, maintaining a budget and paying your remaining debt on time or early to avoid negative consequences. It will likely take time and effort, but the goal of any bankruptcy is to provide a fresh financial start for struggling individuals and this includes rebuilding a credit rating.
Bankruptcy affects all credit ratings the same way: People believe different versions of this myth for different reasons. They might believe that everyone’s credit score drops to zero or, perhaps, everyone who files for bankruptcy will see an automatic drop of 250 points. Neither of these are true. The credit score factors in numerous details including the amount of debt discharged and the relationship between your negative and positive credit accounts. The impact of bankruptcy on your credit score is unique to your situation.
You won’t be able to get another credit card or loan after a bankruptcy: It might be challenging at first, but it is possible to rebuild your credit rating through sustained efforts. Many people select a secured credit card at first and use that to start rebuilding a strong rating. Once credit card companies and loan agencies see a positive trend, they will continue offering financial deals.
When debt begins to mount, it can quickly become overwhelming. From credit card debt and medical debt to personal loans and mortgage payments, an individual can face an unstable financial future for countless reasons. For many people, Chapter 7 or Chapter 13 bankruptcy are strong options toward a stable financial future.]]>On Behalf of Lefkovitz & Lefkovitz<![CDATA[Debt collectors have new methods in 2021]]>https://www.lefkovitz.com/?p=512262021-09-06T20:47:15Z2021-09-06T20:47:15ZContacts expanded
The Consumer Financial Protection Bureau changed its rules beginning in 2021. Debt collectors are now permitted to contact consumers through their social media accounts for unpaid medical, credit card and other debt.
Debt collectors, however, must still follow rules if they use social media as a communication method. Collectors may not mislead consumers into connecting with them by posing as a friend or social contact. Debt collectors who make contact through social media must clearly state that they are seeking to collect an outstanding debt.
Debt collectors are prohibited from discussing consumers’ debt in public forums. For example, they may not post a message on a debtor’s Facebook wall reminding them to pay their debt or face severe consequences. Collectors, however, may send private messages through Facebook requesting payment.
Consumer rights
Collectors still must comply with many other rules. They cannot call consumers before 8:00 am or after 9:00 pm. Collectors may not use threatening language or profanity with debtors, threaten to arrest debtors, physically harm them, or lie about the amount of the owed debt.
Collectors must also comply with written requests to stop contact with debtors except to inform them of a lawsuit. They cannot discuss personal finances with member of the debtor’s family besides their spouse.
If a debtor is represented by an attorney, the collector must route all communications with the debtor through that attorney. A lawyer may also provide options on dealing with insurmountable debt such as a Chapter 7 or Chapter 13 bankruptcy.
Although the rules governing debt collectors’ behavior is ever-changing, they still must comply with rules. If you are dealing with the prospect of overwhelming collectors, you have options for requesting that they give you breathing space while you decide how to move forward.]]>On Behalf of Lefkovitz & Lefkovitz<![CDATA[Will I lose my house if I file for Chapter 7 bankruptcy?]]>https://www.lefkovitz.com/?p=512222021-08-13T14:13:46Z2021-08-13T14:13:46ZBankruptcy exemptions
Houses can be exempted property if their equity is less than the state’s limits. Equity means the total value of the home, minus the liens and mortgages on it. In Tennessee, the limit of the exemption will depend on the filer’s age as well as the people they live with:
$5,000 for an individual
$7,500 for a married couple
$12,500 for an individual over 62 years old
$20,000 for a couple where one is over 62 years old
$25,000 for an individual with custody of a minor child
$50,000 for a couple, both with custody of a minor child
If the equity you have in your home is over the exemption limit, you may lose it. Otherwise, the trustee cannot sell it, and you may keep your home.
Discharging your debt
If your house’s value is under the exemption limit, you may be able to keep your house and, at the same time, wipe out most of your debt. By filing for Chapter 7 bankruptcy, you can eliminate some of the debts that you would need to pay at some point. So if you want to stop the creditors from pursuing you, filing for bankruptcy would be a good option if you don’t find any other way to repay them.]]>by Lefkovitz & Lefkovitz<![CDATA[What’s an automatic stay?]]>https://www.lefkovitz.com/?p=512152021-07-23T15:02:05Z2021-07-23T15:01:05ZAutomatic temporary stay
If you file for bankruptcy and the court approves your case, they will put you on a temporary automatic stay. This means that creditors, collection agencies or government entities won’t take action against you or your property. Some actions that automatic stay can prevent are:
Debt collection
Foreclosure
Repossession
Tax liens against income or property
Wage garnishment
The debts need to have been acquired before filing for bankruptcy for the automatic stay to be effective. To get protection against these actions, the bankruptcy clerk will contact all your creditors and inform them that you are on automatic stay.
Exceptions
There are some situations in which automatic stay cannot protect you. If you owe money for civil actions or proceedings, like alimony and child support lawsuits, you will need to pay these to stop the creditor’s efforts. An automatic stay won’t help you either in some tax proceedings and wage garnishments if you took a loan against your pension.
A creditor’s defense
There are many situations in which a creditor can obtain relief from the automatic stay and resume their collection efforts. To do so, the creditor must file a Motion for Relief and must prove to the court one of the following:
There is a lack of protection of an interest or property
The debtor does not have equity in a property, and they don’t need that property for an effective debt reorganization
The creditor has an interest in a single asset real estate
The filing of bankruptcy was part of a scheme to delay, hinder or defraud creditors
A creditor needs to have proof for the court to grant them relief from the automatic stay.
Protecting your rights in bankruptcy
The automatic stay will last until your case is closed or dismissed. This will give you enough time to reorganize your debts and repay as many creditors as you can. If a creditor or debt collector violates their automatic stay, you can sue them and recover any damages.
Bankruptcy as a solution
Filing for bankruptcy may not protect you against all creditors. Still, it may be the best solution if you have overwhelming debt. With bankruptcy, you can find a way back to a stable financial life and start anew. That way, you won’t have to worry about those creditors knocking on your door anymore.]]>