Chapter 7 Bankruptcy Lawyers in Knoxville

Helping Consumers Eliminate Debt Across East Tennessee

If you qualify for Chapter 7 bankruptcy, you can get rid of some or all unsecured debts, surrender items considered secure debts, and avoid liens on pledged household goods. Our Knoxville Chapter 7 attorneys can give you the knowledge and power to make an informed choice with no money down and no obligation to you. Let us help you erase your debt, stop harassment by collection agencies, and rebuild your credit.

Our Chapter 7 Bankruptcy Lawyer

The dedicated legal professionals at The Law Offices Of Mayer & Newton, proudly offer the following:

• A free debt consultation with zero obligation
• The convenience of starting the process from your home
• Experienced legal insight into your options
• Local care from a local company, not a faceless corporation

Our certified bankruptcy lawyers are conveniently located in Knoxville, Morristown, and Sevierville, TN. Call (865) 328-7993 today to schedule a free consultation with our Chapter 7 bankruptcy lawyer.

On This Page

• What Is Chapter 7 Bankruptcy?
• What Types of Debts Are Discharged in Chapter 7?
• What Types of Assets Can You Keep in Chapter 7?
• Is Chapter 7 Right for Me?
• How to File for Chapter 7 Bankruptcy
• What to Expect When You Schedule a Free Consultation

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is often referred to as a “straight” bankruptcy or a “liquidation.” In Chapter 7, any assets not considered exempt under the law are turned over to a bankruptcy trustee (or administrator). The trustee sells the property and distributes the money equally among the unsecured creditors. In actual practice, however, very few people are required to turn over any property to the trustee.

In exchange for turning over any property not considered exempt under the law, the debtor is entitled to a discharge of unsecured debts, with several exceptions. On secured debts, the debtor either reaffirms the debt (continues to make payments), surrenders the property back to the creditor, or redeems the property by making a lump sum payment equivalent to the value of the merchandise.

What Types of Debts Are Discharged in Chapter 7?

Chapter 7 will usually discharge unsecured debts, such as:

• Credit card debt
• Medical bills
• Past due utility bills
• Business debts
• Civil court judgments
• Personal loans

What Types of Assets Can You Keep in Chapter 7?

There are certain assets that you can actually keep when you file for chapter 7. These exemptions are common household items that you will need on a day-to-basis so that you can rebuild your life after bankruptcy.

Items that you can keep in Chapter 7 include:

• Household furniture and personal items (clothes, accessories, appliances)
• Motor vehicles that you own and are within exemption limits
• Retirement accounts, welfare benefits, unemployment benefits, etc.
• Alimony and child support

If you have questions about what you may need to keep or liquidate, contact us.

Is Chapter 7 Right for Me?

Prior to deciding to file for Chapter 7, you will need to determine if this is the best financial decision for your unique situation. While Chapter 7 has benefited many people, it is certainly not for everyone.

There are several signs that may indicate Chapter 7 is the right option for you at this time, including:

• Your monthly income is less than the median income in Tennessee
• You have very little or no disposable income
• Your debts are more than half of your total annual income
• It would take you at least five years to repay your debts
• Your debt has severely disrupted many aspects of your life

If the above statements ring true for you, contact our Knoxville Chapter 7 bankruptcy lawyers for a free consultation. With over 60 years of experience, we can provide a reliable evaluation of your circumstances and help you make an informed decision.

How to File for Chapter 7 Bankruptcy

In Chapter 7, the debtor is required to file a petition with the bankruptcy court for the area where he or she lives or where the debtor's principal assets are located.

There are also other documents the debtor must file with the court: schedules of assets and liabilities, schedules of current income and expenditures, statements of financial affairs, and schedules of executory contracts and leases that have not expired.

A copy of the most recent tax return or transcript should also be provided to the assigned case trustee, along with any tax returns filed during the case (including prior tax returns not filed when the case began).

There are additional document filing requirements for consumers who have primarily consumer debts. It is necessary for them to submit: a copy of the credit counseling certificate and a copy of any debt repayment plan they have developed; proof of paying employees within 60 days of filing; a monthly net income statement and any anticipated increase in income or expenses after filing.

What to Expect When You Schedule a Free Consultation

One of our friendly team members will follow up with you to schedule the appointment and explain in detail exactly which documents (such as pay stubs, total amount of debt, etc.) to bring with you to the consultation. Our bankruptcy lawyers will thoroughly assess your financial circumstances and recommend the right course of action during your consultation.

We understand that everyone is different and that no two sets of finances are exactly the same. That's why we consider each situation individually and set pricing and payments according to what is right for you. Our certified bankruptcy attorneys can recommend an effective plan and pricing during your meeting and offer you the power to choose whether or not to continue working with us – with zero payment obligation to you.

Contact The Law Offices Of Mayer & Newton at (865) 328-7993 to begin working with our knowledgeable Chapter 7 lawyers in Knoxville. Request your free case consultation.