Is there a way to avoid repaying certain creditors when filing for Chapter 7 Bankruptcy?

Yes, it is possible to avoid repaying certain creditors when filing for Chapter 7 Bankruptcy in Tennessee. Chapter 7 Bankruptcy law is designed to help individuals and businesses eliminate most, if not all, of their unsecured debts. When one chooses to file for this type of bankruptcy, a trustee is appointed to look over their assets and debts. The trustee then distributes any nonexempt property among the creditors. However, there are certain debts that can be discharged or avoided through Chapter 7 Bankruptcy, such as credit card debt, medical bills, and past-due rent. In addition, while filing for Chapter 7 Bankruptcy certain creditors may be avoided because they are not listed on the bankruptcy court’s list of approved creditors. Generally, these include certain family members, government agencies, and creditors whose debts are not secured by collateral. Other creditors may be avoided through a process known as “stripping” in which the bankruptcy court decides that certain debts are not secure and, thus, not eligible for repayment. Finally, another way to potentially avoid repaying certain creditors when filing for Chapter 7 Bankruptcy is by negotiating with the creditor prior to filing for bankruptcy. The debtor can suggest settling for a much lower amount than the original amount owed and this solution can be beneficial for both parties involved. In summary, individuals filing for Chapter 7 Bankruptcy in Tennessee can potentially avoid repaying certain creditors by having the creditor removed from the bankruptcy court’s list of approved creditors, going through the “stripping” process, or by negotiating a settlement with the creditor prior to filing for bankruptcy.

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Is there a way to avoid repaying certain creditors when filing for Chapter 7 Bankruptcy?

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