Chapter 7 Bankruptcy from Bankruptcy Attorney in Nashville

This plan allows a person to wipe out most of his/her unsecured debt and is most often filed by people who earn less in wages than the median and who have very few, if any, assets. Upon meeting certain criteria, a Chapter 7 plan will allow you to retain your home as well as a select few other assets that are exempt.

Frequently Asked Questions and Answers

1. What is a Chapter 7 bankruptcy case and how does it work? A Chapter 7 bankruptcy case is a proceeding under federal law in which the debtor seeks relief under Chapter 7 of the Bankruptcy Code. Chapter 7 is that part (or chapter) of the Bankruptcy Code that deals with liquidation. The Bankruptcy Code is a federal law that deals with bankruptcy. A person who files a Chapter 7 case is called a debtor. In a Chapter 7 case, the debtor must turn his or her nonexempt property, if any exists, over to a trustee, who then converts the property to cash and pays the debtor's creditors. In return, the debtor receives a Chapter 7 discharge, if he or she pays the filing fee, is eligible for the discharge, and obeys the orders and rules of the bankruptcy court.

2. Who is permitted to file and maintain a Chapter 7 case? Any person who resides in, does business in, or has property in the United States is permitted to file a Chapter 7 bankruptcy case, with the exception of any person who has intentionally dismissed a prior bankruptcy case within the last 180 days. To be permitted to maintain a Chapter 7 bankruptcy, a person must qualify for Chapter 7 under a process called means testing.