If you find yourself struggling with unmanageable financial challenges, you are not alone. Many other Tennessee residents are in the same situation. An improved national economy has helped but certainly not eliminated the need for consumer debt relief. Many people with high levels of personal debt can find that filing a Chapter 7 bankruptcy gives them the help and fresh financial start they need. It is important, however, to note that you cannot discharge every type of debt in a liquidation bankruptcy.
The American Bar Association identifies several of the debts that are not able to be included in Chapter 7 filings. Among these are the following:
- Debts owed to creditors that are not listed in the filing for Chapter 7.
- Debts related to a family law matter such as child support, alimony or a property division settlement.
- Debts from illegal activities such as fraud or attempts to hide money legally obtained in order to avoid paying taxes on it. This may include purchases or cash advances made with credit cards too close to the time that a bankruptcy is filed.
- Payments pursuant to a personal injury or wrongful death settlement from a drunk driving accident.
- Student loans or debts owed to other government agencies or courts.
Many taxes are also unable to be discharged via a bankruptcy. These include trust fund taxes, taxes from returns that have been falsified and taxes less than three years old based upon the date by which they were originally due.
This information is not intended to provide legal advice but general information about bankruptcy in Tennessee.