If you're like many in-debt consumers, filing for Chapter 7 bankruptcy protection might seem like a perfect solution. Unfortunately, the process isn't always so easy to understand.

In Tennessee, people who seek bankruptcy protection are just as diverse as the rest of the state's populace. At The Sexton Law Firm, we leverage our unique perspective as Knoxville natives with 25 years' legal experience in guiding you forward with a personalized strategy that makes your filing experience as painless as possible.

Chapter 7 In Simple Terms

Tennessee law lets debtors file for a few bankruptcy types. Here are some of the most commonly asked questions about Chapter 7:

  • How does Chapter 7 work? Chapter 7 is also known as liquidation bankruptcy. In this form of relief, an impartial third party sells some of your property and uses the proceeds to pay your creditors.
  • Will I lose my house and car? Chapter 7 law exempts certain property from being liquidated, including some homes, vehicles and other essentials necessary to your survival. These exemptions may be based on the current value of your properties, the equity you own in them and whether you're delinquent on payments for those items.
  • How much does Chapter 7 cost to file? The court filing fee is currently $306, and some courts let filers make installment payments.
  • How many times do I have to appear in court? If you manage your case wisely, you'll only have to attend a single meeting to confirm your financial status. Having an experienced bankruptcy lawyer who can hash out the details can make it easier to avoid disputes that force you to spend more time in court.
  • Can I use Chapter 7 to eliminate all my unsecured debt? Most unsecured debts, or those not linked to property, are eligible for Chapter 7 relief. Notable exceptions to this rule include things like student loans, alimony, child support and tax debts.
  • Will someone walk through my house and inspect all my possessions? Bankruptcy home inspections are generally rare. If you fail to disclose your financial information properly or act dishonestly, however, then your chances of an inspection climb.

Filing for Chapter 7 isn't always as straightforward as it should be. At The Sexton Law Firm, we work hard to help you understand your debt relief options and long-term outlook.

Contact Our Tennessee Bankruptcy Attorneys First

The way you file for Chapter 7 determines whether you'll be granted the protected status you crave. Your chances of obtaining relief depend entirely on how you proceed.

Don't liquidate your assets without getting informed. Learn more by contacting us online or calling us at 865-297-5242. We have offices conveniently located in Knoxville and Mount Juliet.