At the Law Offices of Eric K. Fox, we can help you understand the truth about bankruptcy and how it can help you get the debt relief you need. We are experienced at handling Chapter 7 and Chapter 13 bankruptcy. Turn to our firm for straightforward advice and skilled representation throughout the process.
Myth 1: You Will Lose Your Home in Bankruptcy
In a Chapter 13, if you are behind on your house payments, you can get caught up over time and keep your house. In a Chapter 7, if you are current, you are allowed to keep your home in almost all cases.
Only in cases where you have nonexempt equity in the home, and you don't compensate the unsecured creditors, will you possibly lose your home. You will have the choice to file (and under which Bankruptcy chapter) or not to file in those circumstances.
In Tennessee, each debtor is entitled to a homestead exemption (equity, after expenses of home sale) of between $5,000 and $25,000 per debtor. Most people pay for their house through a Chapter 13 if they are behind, or reaffirm on their house in a Chapter 7. In this market, most folks do not have nonexempt equity in their home worth liquidating for the unsecured creditors in a Chapter 7.
Myth 2: You Will Lose Your Personal Property in Bankruptcy
Each debtor is entitled to keep at least $10,000 in resale value (garage sale value) in personal property. You are also allowed to keep up to $1,900 in tools of the trade (per debtor), an unlimited value in clothing as well as unlimited qualified retirement accounts and 401(k)s, etc.
Myth 3: It Is Bad to File for Bankruptcy and It's a Stain
Most folks are able to rebuild their credit reputations very rapidly. You cannot be fired from your job because of bankruptcy. Bankruptcy ultimately derives from the Bible jubilee of the Old Testament where debts were forgiven every seven years (you can file a Chapter 7 once every eight years).
Myth 4: Bankruptcy Ruins Your Credit
Your credit should start improving after you file for bankruptcy. If you have delinquent accounts and you do not have the ability to pay them off, your credit will never improve; that is when you want to file bankruptcy. Once you file, you will be compared to other people who have filed bankruptcy (with respect to your credit score, which in itself can give rise to a higher score). Most importantly, if you make your rent or other secured payments on time, you will start improving your credit score rather rapidly.
Contact an Attorney About Bankruptcy
To learn more about bankruptcy myths and the real benefits of bankruptcy, contact bankruptcy lawyer Eric Fox to schedule your free initial consultation. We can be reached toll free at 888-808-7604 or locally at 615-338-5291. You may also contact us online.
Our Hendersonville office is located in the Hazel Path office complex and offer free parking near the lake, off Main Street. Our office hours are Monday through Friday from 8:30 a.m. to 5 p.m., with evening and weekend appointments available upon request.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.