A Chapter 7 Bankruptcy Attorney in Kingsport TN helps clients wipe out most of their debt through this federally approved program. It can cover unsecured debt such as credit cards and installment loans, but not unsecured debt in the form of back child support payments and student loans. Secured debt, like a car loan, cannot be eliminated. If the person cannot continue making car payments, the vehicle will be repossessed.
Bankruptcy can happen to anyone. An individual who feels ashamed about this situation might do a search and discover how many high-profile celebrities who once were wealthy had to file at some point. Whether there was a catastrophic occurrence or the person seriously mismanaged his or her finances, bankruptcy protection offers the chance for a fresh start.
Analyzing the Financial Situation
A Chapter 7 Bankruptcy Attorney in Kingsport TN performs a broad range of projects for clients in this situation. The first step involves analyzing the person’s financial situation to make sure this individual qualifies for Chapter 7. In some instances, the person feels overwhelmed with debt but actually has enough disposable income to qualify for Chapter 13, a repayment program. The bankruptcy court might then require a conversion of the Chapter 7 filing to Chapter 13.
There are advantages and disadvantages to that situation. The individual has the chance to pay back most or all of the debt now. However, the payment plan can last anywhere from three to five years, leaving this person having to make those payments for a long time to come.
Additional Steps
If the person is eligible for Chapter 7, the lawyer prepares all required documentation and files it with the court. Scheduling the client with the required budget and credit counseling course can be done if this person prefers that the lawyer handle it. There may be meetings with creditors that the attorney can attend with the client. The lawyer may be able to help this person save some assets. Certain assets are exempt from dissolution to pay creditors and the attorney will inform the client about which qualify. Find more information about one particular bankruptcy attorney online.
