Are there different types of Chapter 7 Bankruptcy?

Yes, there are different types of Chapter 7 Bankruptcy in Tennessee. Chapter 7 Bankruptcy, sometimes referred to as “straight bankruptcy” or “debtor’s bankruptcy,” is the most commonly used type of bankruptcy. Under Chapter 7, the debtor’s non-exempt property is used to pay creditors as much as they can before the remaining debt is discharged. This type of bankruptcy is the most common because it allows for a quick discharge of debt with only minimal qualifications and income limits. However, there are other types of Chapter 7 Bankruptcy available to Tennesseans. Chapter 7 Bankruptcy can also be referred to as “asset liquidation” bankruptcy. In this type of bankruptcy, the debtor’s assets are sold off to pay creditors. This includes things like cars, real estate and other personal property. Depending on the assets available, this type of bankruptcy can help you receive a greater discharge of debt than standard Chapter 7. Most of these other types of Chapter 7 Bankruptcy are not available to individuals who have recently filed Chapter 7 bankruptcy. This is because the bankruptcy laws require a waiting period of 8 years before you can file another Chapter 7 bankruptcy. Finally, if you have recently filed Chapter 7 Bankruptcy in Tennessee, you may also qualify for an “exit plan” bankruptcy. This type of bankruptcy allows you to pay your creditors a reduced amount each month for a certain period of time, usually three to five years. This allows you to pay off your debt in a structured way and avoid further bankruptcy filings.

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Are there different types of Chapter 7 Bankruptcy?

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