We know bankruptcy feels overwhelming. At Clark & Washington, we skip the legal jargon to give our Nashville neighbors the clear, honest answers they deserve. Browse our common questions below, or reach out to speak with someone who truly understands.
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For most of our Middle Tennessee neighbors, the answer is a resounding yes. If you are behind on payments and facing foreclosure, Chapter 13 is often the best tool to stop the auction and catch up on arrears over time. If you are current on your mortgage, Chapter 7 allows you to keep your home as long as your equity falls within Tennessee’s legal exemptions. We’ll look at your specific situation to ensure your front door stays locked to creditors.
Think of Chapter 7 as a “Straight Bankruptcy” or a total reset. it’s designed to wipe out unsecured debt like credit cards and medical bills quickly (usually in a few months). Chapter 13, on the other hand, is a “Reorganization.” It’s a 3-to-5-year plan where you pay back a portion of what you owe based on what you can afford. Chapter 13 is often the “hero” for people trying to save a car from repossession or a home from foreclosure.
Not exactly. Most bankruptcy “hearings” are actually called a Meeting of Creditors. While these used to happen at the federal courthouse in Nashville, many are currently handled via phone or video conference. Even if you do have to appear, you won’t be standing before a jury. It’s a straightforward meeting with a Trustee, and your Clark & Washington attorney will be right there by your side the entire time.
While bankruptcy is a matter of public record, it isn’t published in the local newspapers like it used to be. Unless someone is actively digging through federal court archives, your neighbors, boss, and friends likely won’t have a clue. It’s a private solution to a personal problem.
To qualify for Chapter 7, you have to pass what’s called a “Means Test.” This looks at your income compared to the median income for a household of your size in Tennessee. If you earn too much for a Chapter 7, don’t worry—you still have the option of a Chapter 13, which can often lower your monthly debt payments significantly.
This is a common question! Bankruptcy is great for “liquidating” most taxes that are more than three years old. While it generally won’t wipe out recent traffic tickets or criminal fines, a Chapter 13 plan can often help you pay those fines back over time to help you get your driver’s license reinstated.
The “Automatic Stay” kicks in the second we file your paperwork. This means the phone calls, lawsuits, and wage garnishments in Nashville must stop immediately. From day one, the “bleeding” stops, and you can finally start focusing on your future instead of your past.
We don’t treat you like a case number. We know the local Nashville court system, the local Trustees, and the specific challenges of living in Middle Tennessee’s economy. We offer free consultations, clear flat-fee pricing, and a team that actually listens to your story without judgment.
Is bankruptcy the best path for your specific situation? It’s a big question, and the answer isn’t the same for everyone. At Clark & Washington, we specialize in turning financial confusion into a clear plan of action. If you’re tired of wondering ‘what if,’ let’s sit down and look at the facts together. Reach out now to schedule your no-cost evaluation, either over the phone or through our online booking tool, and let’s find your fresh start.
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