Bankruptcy Overview

Franklin Bankruptcy Attorneys

If you are anywhere in middle Tennessee facing insurmountable debt, are unable to pay on those debts or make any satisfying arrangements with your creditors, you may be considering bankruptcy. Under U.S. bankruptcy law, you are allowed to create a plan which will resolve your debts through a bankruptcy court. Your creditors will be treated equally through a supervised division of your assets. In some types of bankruptcy, a business owner is allowed to continue on with his business, generating income which is used by the court to resolve his debts. Another purpose of bankruptcy law is to permit debtors to be discharged of their debt, even when these debts have not been paid in full.

Often, persons who are forced to file for bankruptcy have lost their jobs, gone through a costly divorce, a long or debilitating illness, or have suffered an accident leaving them disabled, unable to work, or requiring extensive medical treatment. Bankruptcy may be their last resort. However, bankruptcy courts have been created by the U.S. government under Title 11 of the United States Code to provide standard and uniform laws to give debtors a fresh start. Filing for bankruptcy is a valid legal process and doing so does not make you an immoral person.

Types of Bankruptcy

There are several types of bankruptcy, created for different situations. All of these types of bankruptcies have certain requirements which must be met. The most common form of bankruptcy is Chapter 7 which is a type of liquidation bankruptcy. In addition, Chapters 11, 12, and 13 exist as types of bankruptcy which allow the debtor to use future earnings to pay off creditors.

After a bankruptcy is filed, creditors and collection agencies are not allowed to seek payment of their debts outside of the court proceedings. Also, the debtor is not permitted to transfer any property that has been declared as part of the estate under the bankruptcy action. The court establishes the priority of creditor's interests in the case under provisions in the bankruptcy laws.

For more information about bankruptcy and how it may help you, it is important to consult with a Williamson County bankruptcy lawyer at our firm.