Are you feeling buried under a mountain of conflicting information about Chapter 7 and Chapter 13 bankruptcy?
It is easy to become overwhelmed with the sheer volume of material available. Below, our Tennessee bankruptcy attorneys have answered the most frequently asked questions regarding the importance of filing and the specific procedures involved in the process.
Honest, simple, and designed to help you feel confident about your financial future.
Many people worry that bankruptcy will “ruin” their credit.
The truth is: bankruptcy gives you the chance to rebuild.
Most folks who file are already dealing with late payments, high balances, and collections—so bankruptcy often becomes the first step toward stronger credit.
Your credit score may drop at first, but:
Even while it’s on your report, you can still rebuild strong credit.
After your case is filed or discharged, many clients begin receiving credit offers within months. That’s because:
With responsible habits, many people see improvement in 6–12 months.
Bankruptcy does not prevent you from borrowing in the future. Many clients qualify for:
Bankruptcy doesn’t close the door—it helps you walk through a better one.
Removing overwhelming debt stops the cycle of:
Once those negative marks stop, your credit can finally recover.
Bankruptcy is a process designed to help consumers and businesses repay or eliminate their overwhelming amounts of debts under the protection of the courts.
While filing bankruptcy can help eradicate excessive debt, it does not wipe out all obligations. Working with a Tennessee bankruptcy lawyer will help clarify which debts can be discharged and which must still be paid.
Chapter 7 allows most debts to be discharged in exchange for liquidating nonexempt assets. Chapter 13 involves creating a repayment plan to pay back part or all of your debt over time while keeping your property.
It depends on your debt level and income. Those above the median income may not qualify for Chapter 7, while individuals with secured debt above $1.1 million cannot use Chapter 13. Contact Clark & Washington to determine which fits your situation.
Submit a signed letter to the U.S. Trustees with details about the person or business, case number, location, suspected fraud summary, and your contact information. The matter will be sent to the U.S. Attorney for review.
While most people can file, not everyone qualifies for every type. Bankruptcy is designed for honest debtors who can no longer pay their bills. Previous filings may also impact eligibility.
Chapter 7 typically lasts 4–6 months, while Chapter 13 can take 3–5 years, depending on your repayment plan and case details.
You’ll meet one-on-one with a TN bankruptcy lawyer who will review your case and provide guidance. No forms or documents are needed for your initial meeting—just bring yourself.
Yes, but timing depends on loan type and bankruptcy chapter. FHA/VA loans usually require a 2-year wait after Chapter 7, or 12 months into Chapter 13 with court approval. USDA and conventional loans have longer waiting periods. You’ll still need to meet standard credit and income criteria.
Many seniors file due to rising medical and living costs. Medical debt is easily discharged, retirement accounts are largely protected, and Social Security benefits are excluded from the means test. Consult a lawyer to protect home equity and other assets.
We’re always here when you need us—day or night.
Trusted legal guidance from Tennessee's leading bankruptcy firm.
