Nashville Bankruptcy, also serving Clarksville, Murfreesboro, & Gallatin, TN

Bankruptcy Lawyer in Nashville

Bankruptcy law exists to give people who are burdened with debt an opportunity to recover from their financial situation and a chance at a fresh start. By filing for bankruptcy, a debtor makes a legal declaration that he or she is either unable to pay his or her creditors or is experiencing an impairment of his or her ability to pay creditors. Subsequent to making this claim, debtors can begin to obtain relief from their debt by either discharging it or restructuring it. There are various types of bankruptcy plans that provide options to debtors from differing circumstances.

Nashville Bankruptcy Law

How bankruptcy works

In Nashville, bankruptcy may be initiated by creditors on behalf of a debtor through a petition, in an effort to either gather a portion of what they are owed from the debtor or to promote a restructuring of debts. Known as involuntary bankruptcy, this is the less common approach. More often, a voluntary bankruptcy is initiated by the debtor. After bankruptcy is claimed, the assets that belong to the debtor are reviewed, measured, and valued, and these assets are used to repay a portion of the outstanding debt incurred by the debtor. By using the assets that the debtor has available as a measure of repayment to the creditors, debts that simply cannot be paid can be forgiven by creditors and the individual in debt is endowed with the opportunity for a fresh start.

When to consider bankruptcy

There are a variety of reasons why people become overwhelmed with debt and seek to file for bankruptcy. Unfortunate events such as a job loss or a divorce can cause debt accumulation; so can medical bills, overspending, and poor decisions. Common conditions that may prompt you to consider declaring bankruptcy include the threat of foreclosure, having to pay the minimum on bills, and an inability to get out of debt within five years. If you are unable to manage your debts, bankruptcy, through the help of a bankruptcy lawyer in Nashville may be a viable way of eliminating or reorganizing them.

Bankruptcy litigation in Franklin

Certain situations in a bankruptcy may arise that require litigation. If a credit card company charges you before you filed bankruptcy, if you gave away property prior to filing, or if you are accused of bankruptcy fraud in Franklin, bankruptcy litigation may be necessary. Additionally, if you are unable to pay a trustee through a bankruptcy plan, or if a trustee brings a claim against third parties to reclaim your assets, litigation may become necessary.

If you are considering bankruptcy as an option to eliminate your debts and restore your financial stability, contact the law offices of Rothschild & Ausbrooks, PLLC, to learn how our Nashville bankruptcy attorneys can help you with this process.