Chapter 7

Chapter 7 is also known as “liquidation.”  This Chapter of the Bankruptcy Code works best when most of your debt is unsecured debt like credit cards, medical bills, check-into-cash, personal loans, judgments and repossessions.  Don’t let the liquidation part scare you.  Tennessee has a $10,000.00 ($20,000.00 in a joint filing) personal property exemption and up to $50,000.00 homestead exemption (married couple with minor child).  Retirement plans (401(k), IRA, pension) are completely exempt.

Chapter 7 can also work if you have a lot of unsecured debt which is keeping you from paying the important things, like a home or car loan.  Those debts can be reaffirmed in a Chapter 7 and you can keep your car and your house.

Most of our Chapter 7 clients do not lose any property.   We do all of the work and we answer all of your questions.  You provide a description of your debts and property, income and expenses along with other information required to schedule your case.  The Bankruptcy Code is complex, but we walk you through it step by step.  From the first day you walk through our doors to the day the Bankruptcy Court enters a discharge of your debts, we will be at your side.


  • Under median income for household size. (Does not apply if debts are primarily business debts)
  • No discharge in a prior Chapter 7 filed within 8 years or a Chapter 13 filed within 6 years.(There are two exceptions to this rule when you file a 13 first and then a Chapter 7)

Want to know more?  Follow this link to the United States Courts Chapter 7 Bankruptcy Basics page:  US Courts Chapter 7 Bankruptcy Basics