Real Estate Litigation | Bankruptcy Litigation | Medical Malpractice | Wrongful Death | Worker's Compensation | Probate Litigation
Bankruptcy Basics | The Decision to File | Bankruptcy Laws | Bankruptcy Principles | Bankruptcy Law Changes | Bankruptcy F.A.Q. | Bankruptcy Alternatives | Help With Filing Bankruptcy | Recovering From Bankruptcy | Bankruptcy Litigation
When you file bankruptcy, your property becomes subject to administration by the bankruptcy court, referred to as your "bankruptcy estate." However, because something is part of the bankruptcy estate does not mean you will have to give up this property, our Tennessee bankruptcy attorney, Trey Cain, can help. The bankruptcy court's representative, the "bankruptcy trustee" will not take from you any property which is "exempt." For Tennessee residents, the exemptions available in bankruptcy are quite generous and in over 90% of the cases filed, nothing is ever taken by the bankruptcy trustee. Property recently given away to friends or family members is also considered property of the bankruptcy estate. People considering bankruptcy often are tempted to simply give their property away, or pay "favorite" creditors to avoid going into bankruptcy with property. This technique is never a smart idea according to bankruptcy lawyers. Property given away shortly before filing is still part of your bankruptcy estate, and the trustee has legal authority to recover the property. If you have already given property away, the property simply needs to be listed on the petition. It is always better to deal with asset problems straightforwardly, than to hide assets in bankruptcy.
If you need help with filing bankruptcy, please contact a Bankruptcy Lawyer Today and start rebuilding your credit for the future.
Community Property Information is also part of the bankruptcy estate. All property either spouse earns during marriage is owned jointly by both spouses and should be included in the bankruptcy petition. Similarly, most debt incurred by either spouse during marriage is considered "community debt" even if it is in only one spouses name. However, there are some situations where it is perfectly acceptable for a married person to file individually. Retirement accounts are often not even considered part of the bankruptcy estate. Property outside the bankruptcy estate is not subject to administration by the bankruptcy trustee. The bankruptcy court recognizes that you will someday need this money to survive, and there is no future in punishing you by taking your future income away.
Tennessee law (Read more Tennessee bankruptcy law basic information) provides generous exemptions to both homeowners, and non-homeowners. "Exempt" property is property that the bankruptcy court protects for you. The bankruptcy trustee may not administer, or sell, exempt property, it is property of which you stay in possession, and keep, after your case is completed. The application of exemptions to property can vary greatly between cases, but certain generalizations can be made to give you an idea of what to expect. If you have assets over the allotted exemption amounts discussed below, don't worry, your case will simply need to be a chapter 13 instead of a chapter 7.
Under the Tennessee exemption system designed for homeowners, your home's equity is exempt up to $50,000 for an individual with no children living at home, $75,000 for a married couple, or individuals with minor children living there, and $125,000 for disabled individuals unable to work. To claim an exemption on property however, you must live in the house as your principle residence. If you do not live there, you may not claim a homestead exemption. Consumers claiming a homestead exemption are not eligible to also claim the wild card exemption discussed below.
Under the alternative system of exemptions in Tennessee, a consumer may claim a "wildcard" exemption in any property up to an amount of approximately $18,000. You can use the exemption on any property, even cash or money on deposit.
In addition to the homestead and wildcard exemptions, there are also separate exemptions (which apply in either system discussed above), for other types of property. A list of property that can qualify as exempt includes: a car, furniture, clothing, government benefits, jewelry, hobby equipment, tools used on the job, earnings on deposit, qualified retirement plans, health aids, and much more.
The bankruptcy discharge is very powerful, it is the legal excuse you need to make a fresh start. Once the bankruptcy attorney reviews your case including your assets, debts, income, expenses, and is satisfied you have come to the bankruptcy court to follow the law and make a full disclosure of your financial affairs a discharge will be issued to you relieving you of the responsibility to pay all qualified debts. The discharge comes in the mail from the bankruptcy court approximately 2-3 months after your meeting with the trustee. The issuance of the discharge formally concludes you bankruptcy case and begins your new post-bankruptcy liberation from debt. Bankruptcy attorneys in Tennessee can help you out through all processes involved; Trey Cain can.
If you need help with filing bankruptcy, please contact a Bankruptcy Lawyer Today and start rebuilding your credit for the future.