Make a Plan to File for Bankruptcy

Chapter 7 bankruptcy allows you to forfeit property to the banks in exchange for the forgiveness of debts. Sometimes, you can declare certain property as exempt to protect it. In order to qualify for Chapter 7 bankruptcy, you have to meet certain income criteria.

Chapter 13 bankruptcy allows you to keep your property but doesn't result in an instant forgiveness of debts. Instead, you'll work with lenders to develop a new payment plan. By following this plan faithfully, you might have the opportunity to eliminate some of your debt down the line.

Secured debt is debt that is backed by collateral. This is property that the lenders can seize if you don't pay off your debt. Unsecured debt doesn't have any collateral protecting it and is often issued based on the credit of the borrower.

All of the property that you own at the time of bankruptcy filing is considered a part of a bankruptcy estate. A bankruptcy trustee is appointed to look after this estate and make sure that all parties are treated fairly.

Individual filing will only go on one person's credit history and only forgive their debts. Meanwhile, joint filing is when a married couple files in both spouse's names, making them both financially responsible.

Schedule a free consultation with our bankruptcy law firm in Knoxville, TN today.