Will You Have To File Chapter 7 or Chapter 13?
One of the first questions that many people have about bankruptcy is whether they should file Chapter 7 or Chapter 13. However, there really is no choice between Chapter 7 and Chapter 13 bankruptcy in Tennessee. In most cases, the situation dictates which chapter of bankruptcy will be filed. There is rarely an option to pick one over the other.
I am Ben Sissman, a Memphis bankruptcy lawyer with more than 30 years of experience handling both chapters of consumer bankruptcy. After carefully assessing your situation, I will advise you which chapter of bankruptcy should be filed. If there is a choice, I will educate you about the strengths and weaknesses of each, and make my recommendation.
Chapter 7 is the most common type of bankruptcy. It is referred to as liquidation bankruptcy. All of your debt that can be legally eliminated, or discharged, is completely wiped clean. In exchange, you have to sell all of your nonexempt assets and let your creditors share the proceeds. Most people who file don’t actually own any nonexempt assets, so they don’t end up having to sell anything. You will likely keep all your possessions.
In Chapter 13 bankruptcy, all of your debts can be consolidated into one manageable monthly payment. You must stick with your payment plan consistently for a period of three to five years. When the plan has reached completion, all remaining debt is discharged. There is no need to surrender any assets when filing Chapter 13.
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The law office of Ben Sissman is a debt relief agency that helps people file for bankruptcy relief under the Bankruptcy Code.