Serving NE Tennessee along with Lee, Scott, Washington, and Wise Counties of SW Virginia

Law Offices of Stephen L. Gilly
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Committed Kingsport Lawyers Assisting With Bankruptcy in Tennessee

Bankruptcy as a gateway to recovery

If you are considering bankruptcy, you are probably uncertain about what steps to take, and fearful about the future implications of your decision. At The Law Office of Stephen L. Gilly, we understand your fears, and we are committed to educating you as we guide you through the process. Each of our bankruptcy lawyers in Kingsport has the expertise to point you in the right direction for future financial recovery.

The basics of personal bankruptcy from a bankruptcy lawyer in Tennessee

Bankruptcy gives debtors a means of resolving their debts through the division of their assets among their creditors.

There are three basic forms of bankruptcy available to individuals and businesses:

  • Chapter 7 — a complete liquidation where all non-exempt assets are distributed to creditors, and the debtor emerges free of unsecured debts, usually within six months
  • Chapter 11 — a reorganization involving a plan that consolidates debt and for which creditors vote their acceptance or rejection
  • Chapter 13 — a reorganization involving a plan that lasts from three to five years, during which time the debtor makes regular payments to bankruptcy court to pay down the unsecured debt, which is discharged at the end

A Chapter 7 bankruptcy usually allows you to keep some of your property. For example, you can generally make arrangements to continue paying off a car loan or a mortgage, if your payments are current. Thus, by eliminating your debt, Chapter 7 can enable you to avoid foreclosure on your home and repossession of your car.

A Chapter 11 bankruptcy is available to businesses and individuals who have large income and significant debts. If the creditors reject a Chapter 11 plan, the judge may force them to accept it. On the other hand, the negotiations can fail altogether.

A Chapter 13 bankruptcy allows you to retain the property that belongs to your estate. This is especially important if you have a valuable asset such as a house that is not covered by exemptions. But this type of bankruptcy is not available to everyone. It requires a regular income, as it involves regular repayment.

After determining which is the best type of bankruptcy for you, the Kingsport bankruptcy lawyers at The Law Office of Stephen L. Gilly can help you file:

  • A petition for bankruptcy
  • A statement of assets and liabilities
  • Schedules listing your creditors

Bankruptcy as a bridge to the future

Let Kingsport bankruptcy attorneys The Law Office of Stephen L. Gilly help you get a fresh financial start by giving you the guidance, expertise and support you need. You will be pleased with our compassionate and down-to-earth approach. We are located in Kingsport, and serve clients throughout Tennessee and Virginia. Call us at 423-246-3811 to arrange for a free initial consultation, or contact us online.