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Chapter 7 Overview

Is Chapter 7 Bankruptcy Right for Me?

When bankruptcy comes up in a conversation, most people think of a Chapter 7 bankruptcy. Chapter 7 bankruptcy enables filers to wipe out most debts quickly while protecting them from bill collectors and creditors.

I am April Perry Randle, a Cleveland, Tennessee, bankruptcy attorney. I understand the fear and uncertainty that crushing debts can cause individuals, families and business owners. For more information about how I can help you, call me today at 423-464-6908.

Chattanooga Attorney for Filing Chapter 7 Bankruptcy | Credit Card Debt Relief

Filing for Chapter 7 bankruptcy can clear your debts and set your property free. With it, you can erase or eliminate:

  • Credit card debt and other unsecured debts
  • Most loans and other secured debt
  • Home foreclosure debts
  • Medical debts
  • Divorce-related debts
  • Some IRS tax debts
  • Judgments
  • Lease and contract debts
  • Garnishments

As soon as you file for Chapter 7 bankruptcy, a bankruptcy court will grant an "automatic stay" that stops the clock on debt collections. From that moment until your bankruptcy case is discharged, bill collectors and other creditors will be disallowed from pestering you.

You Do Not Have to Lose Everything by Filing Bankruptcy

Like other states, Tennessee allows people who file for bankruptcy to keep certain property that they own outright or in which they have equity, or value beyond what is owed to a creditor for the property. Recently, Tennessee has increased the amount of property Chapter 7 bankruptcy filers can keep; this property is referred to as an exempt asset.

For individuals and couples who are deeply in credit card and unsecured debt, Chapter 7 is often the best choice. This is because it permanently liquidates filers' unsecured debts while still allowing them to keep and/or keep and pay for the property needed for a fresh start. For example, if you are married and have minor children in your home, when you file bankruptcy you can keep your personal residence even if you have up to $50,000 in equity in the property.

If you have secured debt (debt for which payment is "secured" or guaranteed by property if you default) that you do not desire to retain, you can surrender the property and creditors will not be allowed to collect anything further from you even if they sell the property and don't get enough from the sale to pay what is owed on the loan (deficiency balance). Although a Chapter 7 bankruptcy will remain on your credit report as a notation for seven to 10 years, you can begin rebuilding credit in as few as three months from the date you file your case. Most Chapter 7 debtors with regular incomes are able to finance vehicles in as few as four months and will likely be able to finance a home in three to five years if they maintain good credit after filing bankruptcy.

Learn more about Chapter 7 bankruptcy: For more detailed information about the Chapter 7 bankruptcy process, please read our " Chapter 7 in Detail" page.

Bankruptcy exemptions and realities: Bankruptcy will not leave you homeless and penniless. Find out why by reading my " Can I Keep My House & Property?" page. See common bankruptcy misunderstandings debunked on my " Bankruptcy Myths" page.

I Am Attorney April Perry Randle, Offering Free Consultations On Bankruptcy In Tennessee

To discuss your options with a bankruptcy attorney who is invested in your success, contact me online or by calling 423-464-6908.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.