As a resident of Tennessee, you have several options available if you decide to file for bankruptcy. Chapter 13 and Chapter 7 are the two most commonly talked about. However, before you file for bankruptcy, you should understand that not every debt you hold may be considered dischargeable.
FindLaw shows what typically happens after you file for Chapter 7 bankruptcy. The outcome largely depends on what debts you may be trying to rid yourself of. Chapter 7 bankruptcy allows you to discharge unsecured debt, which is a big help to a large number of people because things like credit card debt fall into this category.
However, there are exceptions to these dischargeable debts, and they can be quite notable. Some of them include:
- Child or spousal support
- Federal tax liens
- Some types of tax debt
- Penalties or fines for broken laws
- Cooperative housing fees
- Debts that result from any deaths or injuries that were caused by your car
Besides that, there are some types of debt that Chapter 13 bankruptcy can discharge, but Chapter 7 bankruptcy cannot. This can include divorce-related property settlements, debts that are related to the malicious or willing destruction of property, and any non-dischargeable tax obligations you may still have at the time of filing.
It is important to remember that filing for bankruptcy is not a cure-all to every single debt-related issue you may currently have. However, it can certainly help you out a great deal if you are struggling. You may therefore wish to consult an attorney to learn more about your options in pursuing bankruptcy possibilities.