Knoxville Chapter 7 Bankruptcy Attorney

The most common type of bankruptcy filed by Knoxville residents is Chapter 7 bankruptcy. In liquidation, which is the conversion of assets into money, a trustee is appointed who collects the non-exempt property of the debtor, which they then sell to pay the creditors off with any resulting proceeds. The selling of a person's assets to pay off creditors can feel a bit overwhelming, however, certain kinds of property may be exempt from being liquidated. Ensuring the exemption of certain assets is something that your Knoxville Chapter 7 bankruptcy attorney can help you with.

How Chapter 7 Bankruptcy Works

Chapter 7 differs from Chapter 13 in that the debtor will not need to make a payment to a trustee. this is something you can discuss and go over with your Knoxville bankruptcy lawyer. An attorney will be able to help calm your fears and fully analyze the details of your case to present you with the best possible results.

Benefits of Filing Chapter 7 in Knoxville, TN

A benefit of Chapter 7 bankruptcy is that the debtor will be able to receive a discharge on any and all dischargeable debts. There are 19 types of debt that fall under this general class, presenting one with good chances of their type of debt being eligible for discharge under Chapter 7. Another advantage is having the ability to sign a reaffirmation agreement allowing a debtor to continue paying a mortgage on their home or paying a car loan. This agreement was put into place by lawmakers so that a debtor could retain the right to some or all property.

If you are considering filing for Chapter 7 bankruptcy in the Knoxville area, including Lenoir City, Sevierville, or Pigeon Forge, we strongly recommended you consult with an experienced attorney to have your case appropriately evaluated.