How to File Chapter 13 in Tennessee
There are various forms of bankruptcy, which is a legal procedure where the estate of an individual or business is assessed and distributed by a court to creditors. When the process is completed, debt is usually eradicated from the record of the party filing.
As a federal procedure, states uphold the same basic laws. In Tennessee, the sole proprietor of a business or an individual can file Chapter 13 bankruptcy, which allows a repayment of debts, partially or fully, over a period of 3 to 5 years. This gives the filing party some breathing room to start over or "reorganize" while paying off debt.
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Instructions
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Locate the federal bankruptcy court that handles your county. These are listed in the "References" section below. The state has three districts, with a total of eight courts available handling various counties.
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File a petition for bankruptcy in court, either by completing the form at the courthouse, or downloading it and completing ahead of time. With the petition, you will need to provide a list of your creditors and liabilities, as well as assets, your current income and monthly expenses.
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Complete a "Statement of Financial Affairs" for the court, which shows 1) all income, business or personal; 2) payments made to any creditors in the past 90 days or any payments made to relatives or partners of a business; 3) any lawsuits filed against you in the past year; 4) a list of all property, even if it was garnished, seized or repossessed; 5) an assignment of any property for the benefit of your creditors in the past 120 days; 6) a list of gifts and donations made in the past year; 7) any losses from theft, gambling or fire within the past year; 8) proof of any payments made for debt counseling or bankruptcy proceedings, including legal fees; 9) any transfers of property in the past two years; 10) any property transferred to a trust in the last 10 years; 11) any financial accounts that were closed in the last year; 12) location of safe deposit boxes; 13) any setoffs made to creditors; 14) property you are holding for another person; 15) all addresses you held in the past three years; 16) contact information for any and all spouses or former spouses if you lived in a community property state; and 17) proof of any businesses you owned.
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Submit a payment plan proposal to the court, showing how you will pay all "priority claims" (which are given special status in a bankruptcy filing) in full, unless a creditor has agreed to a lessor amount.
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Work with the court-appointed trustee to verify all assets and liabilities as you wait for the court's approval or disapproval at a scheduled hearing.
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Make monthly payments to the assigned trustee when the plan is approved for priority claims, which allows other debts to be discharged. The trustee will distribute the funds to creditors.
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Tips & Warnings
If you lose your job or suffer an illness during the bankruptcy payment plan, you may request a "hardship discharge" from the court.
You can handle the bankruptcy procedures "pro se", without an attorney; or hire an attorney to handle the process for you.
Make sure to list all assets on the "Statement of Financial Affairs" to avoid penalties for "hiding" any, even if it was accidentally not listed.
If payments are not made during the payment plan, creditors can ask the court to dismiss the bankruptcy, allowing collections against you to proceed.
References
Resources
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