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How You Can Answer Your Bankruptcy Questions in Nashville, TN

5467214_lBankruptcy is the final solution for debt issues, and it’s a big decision. Because of its nature, people don’t like to talk too much about it. Plus, the experience with the process is going to vary greatly from person to person as each bankruptcy is different. Having Bankruptcy Questions in Nashville, TN answered is best done by a lawyer, but it is possible to answer some of the more common questions about filing.

Before you start the petition, you need to know what chapter of bankruptcy you are going to be filing under. You can’t simply choose what chapter you are going to file; instead, you need to fill out the means test to figure it out. The means test is a series of questions that asks about how much money you earn and how much of it goes out to bills every month. Some basic math is required to determine how much money comes in versus how much goes out in order to determine which chapter you are eligible for. If your answers meet one set of criteria, you file in Chapter 7. Meeting the other set of criteria means filing under Chapter 13.

Another one of the many Bankruptcy Questions in Nashville, TN that can come up is how your debts are eliminated. To begin with, some debts are ineligible for discharge, such as student loans and child support payments. As long as your debts are eligible for discharge, such as consumer debts, a mortgage or other types of loans, you can see them cleared in bankruptcy. The way bankruptcy works is by creating a permanent injunction against collection activity against you. At the beginning of the bankruptcy, a temporary injunction is created, otherwise known as the automatic stay. In the event that your request for relief is granted by the federal bankruptcy court, your debts are put behind the permanent injunction. After this order is entered, your creditors can never try to collect from you ever again. Any violation of this order is punishable in court by you, and you can potentially win damages.
Bankruptcy is not something to be taken lightly. It’s always a good idea to discuss your thoughts and questions with a lawyer before making the decision to file.

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