The first step toward utilizing bankruptcy in Tennessee is to file a petition with the court. It is incredibly important to know what is supposed to be included in the petition in Tennessee. Below are a few things that are required, though this list is not exhaustive. Anyone who files a petition for Chapter 7 bankruptcy with a U.S court will need to include:
- A list that details all of their remaining assets.
- A list of their liabilities at the time of the filing.
- A schedule showing how much money they currently get paid and count as income.
- A schedule that also shows how much they have to spend.
- An overall statement that details their financial affairs for the court.
This information is used to form a basic idea of what a person's overall financial situations looks like, starting with how much money they have and progressing to how much they owe. It can then be determined if they technically qualify for bankruptcy in the first place.
The lists that detail the person's assets - which can go above and beyond the money that they have - are also very important because some of those assets may be liquidated in order to pay off the money that they owe. Therefore, these lists can help to show what items they may have that can be used for liquidation and the resolution of debt through the bankruptcy process.
However, not all of the assets that a person has will be used, as there are many items that could possibly be exempt. It is also important to know which items fall into that category. An experienced bankruptcy attorney can provide more information about filing requirements and exemptions.
Source: US Courts, "How Chapter 7 Works" Sep. 09, 2014