Jimmy E. McElroy & Associates Jimmy E. McElroy & Associates 2026-07-10T00:54:59Z https://www.jmcelroy.com/feed/atom/ WordPress /wp-content/uploads/sites/1601851/2020/11/cropped-favicon-32x32.png On Behalf of Jimmy E. McElroy & Associates <![CDATA[How long is a Chapter 13 plan, and how much do filers pay?]]> https://www.jmcelroy.com/?p=47718 2026-07-10T00:54:59Z 2026-07-10T00:54:59Z Every filer has unique circumstances The laws regulating Chapter 13 bankruptcy outline standards for repayment plans, but the terms imposed are different in every case. The duration of payments can be anywhere from three to five years. The amount the filer pays monthly is frequently less than the combined monthly minimums for all of their financial obligations. However, there is often an expectation that they should commit most of their disposable income to those payments. The amount of debt they carry, the value of their personal holdings, their income and even the nature of the debts owed can all influence how much a filer pays each month and how many months they must make payments. Those who have a bankruptcy lawyer supporting them at creditor meetings and while developing proposed payment plans are in the best situation possible to arrange a sustainable plan. Having support can take much of the uncertainty and stress out of a Chapter 13 bankruptcy.]]> On Behalf of Jimmy E. McElroy & Associates <![CDATA[Can medical debt be eliminated through Chapter 7 bankruptcy?]]> https://www.jmcelroy.com/?p=47717 2026-06-30T09:30:21Z 2026-06-30T09:30:21Z Medical emergencies often happen without warning, and the bills that follow can quickly become overwhelming. Even people with health insurance may find themselves struggling with expenses they never even expected. When medical debt starts to pile up, it can affect every part of daily life. The good news is that there may be options available to help you move towards a stronger, more stable financial future.

Finding relief from overwhelming medical bills

Medical debt is one of the most common reasons people experience financial hardship. In 2024 alone, Americans owed a total of $220 billion in medical debt. A serious illness, emergency surgery or ongoing treatment can lead to large balances that become difficult to manage, especially when combined with everyday expenses like housing, groceries and utilities. If payments continue to fall behind, stress can quickly grow. For many people, Chapter 7 bankruptcy offers a chance to eliminate unsecured debt, including most medical bills. Because medical debt is generally considered unsecured, it may be discharged through the Chapter 7 process if you meet the eligibility requirements. This can provide meaningful relief by removing debts that have become impossible to repay and allowing you to focus on rebuilding your financial stability. While Chapter 7 may not eliminate every type of debt, it can provide a fresh start for individuals facing overwhelming medical expenses. Every financial situation is unique, so it is important to understand how the law applies to your circumstances before making any decisions. Reviewing your options can help you determine whether Chapter 7 is the right path toward lasting financial relief. If unexpected medical bills have left you feeling overwhelmed, you do not have to face these challenges alone. Speaking with a legal professional can help you better understand your options and take the first step toward a fresh financial beginning.]]> On Behalf of Jimmy E. McElroy & Associates <![CDATA[Can you keep your car after filing for Chapter 7?]]> https://www.jmcelroy.com/?p=47716 2026-06-26T16:05:01Z 2026-06-26T16:05:01Z Does your equity affect whether you keep the car? Equity is the part of the car’s value left after the loan. It is the difference between what the vehicle is worth and what you still owe. If your car is worth $13,000 and the loan balance is $8,000, you have $5,000 in equity. That equity amount matters because the bankruptcy trustee reviews whether your vehicle's value or equity fits within Tennessee's $10,000 personal property exemption. If the equity is fully covered by this exemption, the trustee cannot liquidate the vehicle. It may help to estimate your car’s current value and check the payoff amount. Together, those numbers show how much equity you have.

What if you are still making car payments?

After equity, the monthly payment may become the next issue. Even if your equity does not create a major problem, the loan terms could still affect your budget. If you still owe on the vehicle, the lender usually keeps a secured interest in it. That means the loan agreement may affect your options after you file. Reaffirming the loan means you keep paying and remain responsible for the debt after bankruptcy. Redemption may involve paying the vehicle’s current value in one payment. If the monthly payment no longer works, surrendering the vehicle might also become part of the discussion. A car with little equity could still become difficult to keep if the payment leaves less room for housing, groceries and other everyday expenses.

A closer review may clarify your options

You may be able to keep your car after filing Chapter 7, but the answer usually depends on your full situation. Your equity, loan terms, monthly payment and transportation needs often work together. Looking at the complete picture could help explain why keeping a car may be possible in one Chapter 7 case, but more difficult in another.]]> On Behalf of Jimmy E. McElroy & Associates <![CDATA[Medical debt can sometimes lead to bankruptcy]]> https://www.jmcelroy.com/?p=47715 2026-06-17T10:02:56Z 2026-06-17T10:02:56Z Life events, such as unexpected illness or injury, can have significant effects on a person’s life. One of the areas that it can affect is finances. Medical debt can grow quickly, even if the person has insurance. Hospital stays, emergency room visits, specialist care and ongoing treatments can quickly add up. The financial hit can become worse if the person is unable to work.  Some people may turn to credit cards to pay those bills, or they may seek out personal loans. While those are valid ways to pay medical bills, they don’t do away with the debt balance. If the debt becomes more than they can handle, they may seek options for financial relief. Bankruptcy is one of those options. 

How can bankruptcy help?

Consumer bankruptcies, including Chapter 7 or 13 bankruptcy, address medical debt. Once the bankruptcy is filed, the court issues an automatic stay that stops collection attempts. That point alone can give the individual relief as they deal with their medical issues.  In the case of either type of bankruptcy, the medical bills and other eligible debts are discharged when the bankruptcy concludes. Being free of those debts may make it easier for the person to have a better financial foundation as they continue to heal from the illness or injury they’re dealing with.  Filing bankruptcy is a major decision, so it’s best to find out about the rights and responsibilities you have throughout the process. Working with someone familiar with these matters may make the decision a bit easier to make.   ]]> On Behalf of Jimmy E. McElroy & Associates <![CDATA[Repossession warning signs (and what to do this week)]]> https://www.jmcelroy.com/?p=47714 2026-06-15T16:02:56Z 2026-06-15T16:02:56Z You breach your specific loan contract terms A default can occur 24 hours after a missed due date. You must read your specific contract because internal lender policies vary wildly. No statutory grace period exists under local laws, meaning a finance company can initiate recovery actions immediately.

Your local lender stops returning telephone calls

When a finance company stops responding to your inquiries, it signals trouble. This silence usually means the lender turned your account over to a local repossession agent. Representatives at the bank will no longer negotiate because the assignment is already live.

A temporary payment modification agreement expires

Short-term repayment plans offer brief safety. Once that modification timeline ends, the entire past-due balance becomes due immediately. If you cannot pay the full catch-up amount, the lender flags the vehicle for immediate recovery.

Your immediate action plan to protect a vehicle this week

You must take deliberate steps to secure your transportation. Gather these essential documents before the week ends:
  • Your original automobile loan contract
  • The payment ledger showing your total balance
  • Recent correspondence from the finance firm
Reviewing these files with a legal professional helps clarify your options. An attorney can file a bankruptcy petition to protect your vehicle before a contractor arrives.

A path forward to protect your primary transit

A sudden financial setback does not mean you must lose your independence. Chapter 13 bankruptcy allows you to restructure past-due auto payments into an affordable plan over 3 to 5 years. This strategy safeguards your vehicle and helps you rebuild your financial stability. Speaking with a local bankruptcy lawyer can give you clarity on the exemption limits current as of June 2026.  ]]> On Behalf of Jimmy E. McElroy & Associates <![CDATA[Is asset liquidation inevitable in a Chapter 7 bankruptcy?]]> https://www.jmcelroy.com/?p=47713 2026-06-05T17:51:32Z 2026-06-05T17:51:32Z Chapter 7 bankruptcy is the fastest way for individuals, married couples and businesses to discharge unsecured debts. When the process moves forward without any significant complications, filers can often complete Chapter 7 bankruptcy in less than half a year. Unlike Chapter 13 bankruptcy, which requires a lengthy repayment plan intended to reduce debts before the discharge, Chapter 7 bankruptcy does not require any monthly payments from the filer. Instead, the courts may sometimes require that they liquidate certain assets and use the funds from the sale of those assets to pay their creditors. Is property liquidation a universal requirement in Chapter 7 bankruptcy cases?

People often avoid liquidation

If those filing for personal bankruptcy had to eliminate all of their valuable assets to qualify for a discharge, bankruptcy could very well worsen their financial circumstances. Thankfully, there are exemptions available. Filers can protect home equity, vehicles and other necessary resources by using exemptions. Most bankruptcy filers can preserve all of their assets, completely bypassing the need to liquidate any resources. Tennessee is an opt-out state, which means that filers can only use state exemptions, not federal exemptions. Even without the choice of two different sets of exemptions, many filers can preserve their most valuable resources during Chapter 7 proceedings. Those who cannot may need to review their resources and debts carefully before moving forward with a filing. Discussing current assets and debts with a Chapter 7 bankruptcy attorney can help people determine if their property is at risk. Exemptions allow people to discharge their debts while protecting the assets they need to rebuild financially after a bankruptcy discharge.]]> On Behalf of Jimmy E. McElroy & Associates <![CDATA[Is it wise to file for bankruptcy before divorce?]]> https://www.jmcelroy.com/?p=47709 2026-05-22T14:32:17Z 2026-05-22T14:32:17Z For couples facing both financial strain and marital problems, the question of whether to file for bankruptcy before divorcing – or separately in the wake of a finalized settlement – can be very important.  In some cases, filing jointly for bankruptcy before ending one’s marriage may simplify certain financial issues. In other situations, it may create additional complications. The right approach for any particular set of divorcing spouses depends heavily on the couple’s debt levels, assets, communication and long-term goals.

It can make negotiations easier

One potential advantage of filing for bankruptcy before divorce is efficiency. Married couples may qualify to file a joint bankruptcy petition, which can reduce court costs, legal fees and administrative expenses compared to filing separately later. Joint bankruptcy may also eliminate or restructure shared debts before property division occurs during the divorce process. Addressing debt first can sometimes make divorce negotiations easier. Credit card balances, medical bills, personal loans and other unsecured debts often create major conflict during divorce proceedings. If those debts are discharged beforehand, spouses may have fewer financial disputes to resolve. Bankruptcy may also help preserve certain marital assets. If overwhelming debt threatens a family home, vehicles or savings, bankruptcy protections may provide temporary relief from collection actions or foreclosure efforts while the couple reorganizes financially.

The delay can be difficult and emotional

With all of this said, filing for bankruptcy before divorce is not always the best option. Bankruptcy requires extensive financial disclosure and cooperation between spouses. If the relationship is highly contentious or one spouse is hiding assets, joint filing may become difficult or risky. Also, property settlement obligations may also receive different treatment depending on the bankruptcy chapter involved. In some situations, divorcing first may provide greater flexibility, but in others, it may simply bind spouses together financially for longer. This may be especially true if a couple only qualifies to file for relief under Chapter 13 of the Bankruptcy Code.  Because bankruptcy and divorce laws intersect in complex ways, seeking legal guidance is extremely important before making decisions. The stakes are simply too high for a DIY approach. ]]> On Behalf of Jimmy E. McElroy & Associates <![CDATA[What happens to child support payments in bankruptcy?]]> https://www.jmcelroy.com/?p=47706 2026-05-09T20:21:56Z 2026-05-09T20:21:56Z Financial hardship can place enormous pressure on families, especially when debt and child support obligations coexist. Many parents wonder whether filing for bankruptcy will eliminate or reduce their child support responsibilities. Understanding how bankruptcy affects child support is important for both paying and receiving parents. While bankruptcy may help manage certain debts, family support obligations are treated differently under federal bankruptcy law.

Child support is not discharged

Child support payments are considered priority obligations in bankruptcy cases. This means they generally cannot be erased through Chapter 7 or Chapter 13 bankruptcy proceedings. Even if a parent receives relief from credit card balances, personal loans or medical debt, ongoing child support payments and unpaid support balances still remain legally enforceable.

What happens to overdue child support

Past due child support, often called arrears, also survives bankruptcy. Filing for bankruptcy does not eliminate missed payments owed under a valid support order. Parents who owe significant back support may still face collection efforts, including wage withholding, tax refund interception and other enforcement methods allowed under law. In Chapter 13 cases, repayment plans usually include structured payments toward child support arrears.

Understanding the automatic stay

When someone files for bankruptcy, an automatic stay temporarily stops many debt collection actions. However, child support enforcement is an important exception, and actions related to establishing, collecting, or modifying child support can usually continue despite the bankruptcy filing.

Modification requests and financial hardship

Bankruptcy itself does not automatically reduce monthly child support obligations. A parent experiencing financial difficulties must request a modification through the family court if income or employment circumstances have changed significantly. The court may review factors such as job loss, reduced earnings or medical hardship before deciding whether future payments should be adjusted. However, previously owed support usually remains due.

Protecting your financial future

Child support and bankruptcy often overlap during periods of financial stress. Understanding the difference between dischargeable debt and protected family obligations can help parents avoid costly mistakes. Seeking professional and reliable legal guidance can help you understand your rights, review support obligations and determine how bankruptcy laws may affect your financial responsibilities moving forward.]]> On Behalf of Jimmy E. McElroy & Associates <![CDATA[What debts get wiped out in Chapter 7 in Tennessee]]> https://www.jmcelroy.com/?p=47705 2026-05-04T08:52:08Z 2026-05-04T08:52:08Z Money problems can build up fast. A few missed payments can turn into collection calls, lawsuits and wage garnishment. As pressure grows, looking into Chapter 7 bankruptcy in Tennessee often brings one key question to the surface — what debts actually go away? The answer depends on the type of debt and how it fits into your overall financial picture.

What can go away

To start, Chapter 7 focuses on clearing unsecured debts. These are balances not tied to property like a house or car. As the case moves forward, many of these debts may be discharged, which means you no longer have a legal duty to pay them. Common examples include:
  • Credit card balances from everyday spending
  • Medical bills from hospital stays or emergency care
  • Personal loans without collateral
  • Old utility bills such as electric or water
  • Collection accounts and certain past-due rent
As these balances fall away, financial pressure can ease. Instead of keeping up with several due dates, you can begin shifting your focus toward current expenses like housing, food and transportation.

What stays behind

Even with that relief, it helps to look at the other side of the process. Not every debt disappears in Chapter 7, and some obligations remain because of how the law treats them. Keeping this distinction in mind can shape more realistic expectations before filing. For example, certain debts often stay in place, including student loans in most cases, recent tax debt, child support and alimony. Court fines and debts tied to fraud or intentional harm may also continue. Along similar lines, secured debts like a car loan work differently. Holding on to the vehicle may involve continuing payments, even after filing. As these categories come into focus, the overall picture becomes clearer. At the same time, sorting through overlapping debts or court judgments can still raise questions. Speaking with a bankruptcy attorney can help clarify which debts may qualify for discharge based on your specific situation in Tennessee.

A clearer path forward

With a better sense of what Chapter 7 can and cannot erase, the process begins to feel more grounded. Instead of reacting to growing pressure, you can start looking at your options with more direction and purpose.]]> On Behalf of Jimmy E. McElroy & Associates <![CDATA[How often can you file for bankruptcy?]]> https://www.jmcelroy.com/?p=47704 2026-04-24T21:22:02Z 2026-04-24T21:22:02Z Many people who file for bankruptcy only do so once, but there are those who may want to use the process multiple times. You could find yourself wondering how often you are allowed to file or how long you need to wait after a previous filing. The truth is that it depends on the type of bankruptcy that you are filing for. If you are using a wage earner’s plan, which is known as Chapter 13 bankruptcy, or a liquidation bankruptcy, known as Chapter 7, the rules apply a bit differently.

If you originally filed for Chapter 7

For example, say that you filed for Chapter 7 bankruptcy, which means you need to liquidate nonexempt assets and pay off creditors. If you would like to file Chapter 7 again, you have to wait eight years to do so. But if you would like to file for Chapter 13 bankruptcy the second time, then you only need to wait four years.

If you originally filed for Chapter 13

On the other hand, you may have filed for Chapter 13, meaning your debt was consolidated into a repayment plan. If you would like to file for Chapter 13 again, then you have to wait just two years after your bankruptcy has been discharged. If you would like to file for Chapter 7, however, it can take up to six years, depending on your repayment plan.

Exploring your bankruptcy options

As you can see, it is possible to use bankruptcy repeatedly, but you need to know exactly how the schedule works if you would like to do so. Take the time to look into all of your legal options carefully while you consider your options.]]>