If an individual still finds it difficult to catch up on the bills, he or she may also consider bankruptcy as an option to resolve an unmanageable debt load. By filing a petition, a debtor may maintain the right to remain in his or her current home without fear of eviction during the bankruptcy procedure.
The U.S. Bankruptcy Code provides an automatic stay, which means that most creditors may no longer collect from a debtor who has filed a petition. Generally, the stay lasts for about 30 days to give the bankruptcy trustee time to look over a petitioner's assets and liabilities. A Tennessee landlord may not have the ability to pursue a legal action for eviction once a stay goes into effect.
While the Tennessee Supreme Court has suspended in-person eviction proceedings, the Shelby County sheriff's office may, however, issue a writ, as reported by ABC News affiliate WATN-TV. With a writ, a property owner may attempt to garnish a tenant's wages or enact other enforcements.
Tenants may renegotiate a rental agreement with their landlords during the bankruptcy process. A petitioner may work out an arrangement to make payments for rent in arrears and avoid or postpone an eviction process initiated by a landlord’s writ.
The discharge of consumer and medical debt accomplished by a bankruptcy may provide enough financial breathing space to adjust, at least temporarily, to a job loss. It may also provide the means to enter into a successful back-rent negotiation with a landlord.
]]>The trustee in your case will give you instructions on various things, and what will happen with your tax returns may be one of them if you file around tax time. When it comes to your tax refund, the IRS says you can receive one during bankruptcy prior to your discharge. However, there may be exceptions or changes in how things occur.
You may have a delay in receiving your refund. It depends highly on your case and the contents of your refund. For example, if you receive a refund of the taxes you paid, the trustee may decide to put a hold on those funds. He or she may tell you to file, but that you cannot do anything with the refund until he or she tells you it is yours to use as you wish.
The trustee in your case may decide to take your refund and use it to pay your debts. Do note that the court cannot take Earned Income Credit refunds. So, if your refund is only EIC, then the trustee will not take it, but he or she can take any part that is money you paid and get back.
Regardless of what may happen in your case, you must follow the directions the trustee gives you. He or she will probably advise you about your ta return during your initial meeting. You can also ask if the trustee does not mention the refund.
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