Frequently asked bankruptcy questions
Do I need to owe a certain amount of money before I can file bankruptcy?
No.
Will bankruptcy cause me to lose my job?
No. There are specific provisions of the Bankruptcy Code which prohibit an employer from firing or discriminating against an employee who has filed bankruptcy.
When is my bankruptcy case effective?
Immediately upon the filing of the petition. This is when the automatic stay issues.
Will I lose all of my belongings if I file bankruptcy?
No. The Trustee can only take items to sell for the benefit of your creditors if those items have not been claimed as exempt. Tennessee law allows an individual to claim $10,000.00 worth of personal belongings as exempt, and gives individual debtors a $5,000.00 homestead exemption in the equity in their home, and married couples a $7,500.00 exemption. Debtors over the age of 62, and debtors with custody of children under the age of 18 are given more generous homestead exemptions. If debtors have more property than they can exempt, Chapter 13 is often an alternative so they will not lose anything.
Do I need to list all of my creditors on my bankruptcy petition?
Yes. After a Chapter 7 case has been discharged (completed) you may go back and pay any creditors you wish. If you file a Chapter 13, all creditors will be dealt with under the plan with the one payment you will be making to the Chapter 13 Trustee.
Do I need to list accounts or credit cards where I don’t owe anything?
No.
I am married, and all of the debt is mine. Is my spouse required to file?
No
I am not an American citizen. Can I file bankruptcy??
Yes.
I used my credit cards a lot during the last few months. Can I discharge those amounts in a Chapter 7?
This will depend upon the amounts charged, what the charges were for, and how close to the filing date of your bankruptcy the charges were made.
Can I still file bankruptcy under the law that went into effect in October, 2005?
Yes. The Reform Act of 2005 just made it harder to file bankruptcy. It did not take away the right to file bankruptcy.
Do I need to be behind in my bills before I file bankruptcy?
No.
Should I cash in my 401k to avoid bankruptcy?
No. Your 401k plan is protected completely and the IRS will make you pay tax and penalty on your withdrawal.
Should I listen to my friend/relative who filed bankruptcy?
PROBABLY NOT. While they mean well, everyone’s situation is different—different creditors, different income and different questions. If you have questions about your financial situation, ASK YOUR LAWYER.
Call (615) 425-FIRM to speak to an attorney with McCune Zenner Happell. (615) 425-3476