Like many in Davidson, and throughout Tennessee, who are struggling with debt, you may have considered filing for bankruptcy. While Chapter 7 is the most common type of filing, it is not necessarily suited for every situation. As such, it may help to understand the advantages and downsides of filing Chapter 7 bankruptcy in order to determine if it is the right option for your circumstances.
Many people who have never filed for Chapter 7 bankruptcy before may not be aware of the fact one cannot simply declare they are bankrupt without going through a process. There are many steps that must be taken first in order to make the bankruptcy official. Additionally, there is a fair amount of paperwork to fill out.
As anyone who has been harassed by creditors can say, the constant pressure of collection calls and letters can take a heavy mental toll on a person. This is especially true if the calls ever become more threatening or even malicious, which is not entirely uncommon.
Deciding to file for Chapter 7 bankruptcy is a huge step to take. However, there is still much work to be done even after this is made. In particular, there is a lot of paperwork involved. All Chapter 7 bankruptcy filers will need to keep an eye on these papers and requirements..
In bankruptcy law, there is what is known as an adversary proceeding. This is typically brought by the trustee to recover assets of the debtor, which may have been unfairly transferred to one creditor in preference to another. These payments are sometimes called preference payments or fraudulent conveyances and the Bankruptcy Code gives the trustee the power to "avoid" those transfers.
We all have imagined how great it would be to have an income like that of a professional athlete. Earning millions per year, we probably believe that it is like winning a "golden ticket" and that with that kind of income, life would indeed become "easy street."
More than a million Americans file bankruptcy every year, according to bankruptcy court statistics in the United States. Bankruptcy can help individuals struggling with debt by discharging or eliminating certain debts and helping them get a fresh start.
Child support is not dischargeable in a bankruptcy. This means that if you owe child support, your filing a Chapter 7 or a Chapter 13 will not allow you to eliminate that debt. If you are owed child support, your claim for child support remains during the bankruptcy, but the bankruptcy may complicate your collection efforts.
First and second mortgages are very different creatures. A first mortgage has priority over any other mortgages. When a lender issues a second mortgage, it recognizes there is some degree of increased risk that should trouble develop, the first mortgagor can foreclose on the property.
When you take out a second mortgage on your home, your creditor performs some calculations. They assess the value of your home, your income, your other debts and the overall real estate market within your area. They do this to determine their exposure to the risk of your defaulting on the loan, and as important, your risk of defaulting on your first mortgage.