What Debts Are Discharged in Tennessee Bankruptcy?

If you are considering filing for bankruptcy, you may be feeling anxious, confused, and have a lot of questions about what debts can and cannot be cleared. A bankruptcy lawyer can help you answer questions like “What debts are discharged in Tennessee bankruptcy?” and help you determine if bankruptcy is the right option for you.

Choose Kerney Law Firm to Walk You Through Your Bankruptcy Case Today

If you are struggling to determine what debts are discharged in a Tennessee bankruptcy, you may benefit from the help of a bankruptcy lawyer.

With over 20 years of experience handling bankruptcy claims, attorney Christopher Kerney understands just how much financial wellness matters. Kerney Law Firm has helped hundreds of clients just like you grow their understanding of debt repayment, financial freedom, and the options at their disposal. Meet with us to discover why so many of our past clients trusted us with their finances and their futures.

What Debts Are Discharged in Tennessee Bankruptcy?

There are so many different things to consider when choosing whether or not to declare bankruptcy in Tennessee, and knowing what debts you may be relieved of can help you better determine whether or not it is a wise decision to move ahead.

There are two main groupings for debt: unsecured debts and secured debts. Unsecured debts are those not backed by collateral, such as medical bills and credit card bills, and secured debts are backed by collateral, such as a car or home, and are typically mortgages or vehicle loans.

Some examples of debts that can be discharged in a bankruptcy are as follows:

• Credit card debt. When you declare Chapter 7 bankruptcy, it is likely that most of your credit card debt can be discharged.
• Deficiency balances. If you have some debt remaining on a car loan or your mortgage after your property has been repossessed or sold, this may be classified as a write-off under Chapter 7 bankruptcy.
• Medical bills. Outstanding and unsecured medical debts can be written off during the bankruptcy process under Chapter 7.
• Personal loans or lines of credit. Should you choose to declare bankruptcy, any qualifying unsecured loans from individuals or banks can be written off.
• Utility bills. If you have racked up past-due utility payments, this will likely be included as a write-off once you have declared bankruptcy.

Chapter 13 will include these unsecured debts in the payment plan, with remaining debts discharged after the case is closed.

It is important to note, however, that not all debts qualify for discharge. Some examples include the following:

• Recent taxes. There is typically a certain amount of time that needs to pass before your taxes may be eligible for bankruptcy write-off status, and even then, there is no guarantee.
• Fraudulent debts. If you have incurred debts through fraudulent activity and/or false financial statements, these debts will not be included in the bankruptcy write-off.
• Spousal and/or child support. Domestic support debts are not available for the discharge process, regardless of how large the debt you have amassed is. Payments for arrears can be included in a payment plan, however, under Chapter 13 bankruptcy.
• Government fines and legal penalties. If you have been charged with a traffic violation or another form of criminal activity, it is very unlikely that declaring bankruptcy will protect you from having to pay those debts.
• Student loans. Unless you are capable of proving extreme hardship, it is unlikely that your student loans will be included as a write-off.

Why You Should Hire a Bankruptcy Lawyer in Tennessee

There were 197,244 cases of Chapter 13 and 310,631 cases of Chapter 7 bankruptcy filed in the country in 2024. While the debts these people have accumulated most likely differ widely, they all have one thing in common. They had to determine if declaring bankruptcy would resolve those debts.

When you hire a bankruptcy lawyer, you can gain access to the insight, clarity, and direction you need to move forward financially. Your lawyer can help you determine whether or not declaring bankruptcy is your only option, as well as if it is well-suited to your situation. With strong financial analysis and helpful redirection, your lawyer can get you back on the path to financial wellness and freedom.

FAQs

What Kinds of Debts Are Not Written Off When You Declare Bankruptcy in Tennessee?

There are several kinds of debts that generally are not included in the bankruptcy write-off process, including most student loans, court fines, spousal support, recent income taxes, child support, and any debts that are connected to drunk driving accidents or acts of fraud. It is also important to note that, should you declare bankruptcy and aim to write off your secured debts like a mortgage, you have to pay to remain on the property.

How Long Will My Bankruptcy Case Take to Resolve in Tennessee?

The amount of time that your bankruptcy case may take will vary in Tennessee. Some factors that can affect the timeline are the completion of credit counseling, the level of complexity your case presents, whether there are assets that need to be sold, and whether any creditors object. Hiring a bankruptcy lawyer can help you keep your case on track and avoid unwanted setbacks.

Should I Hire a Bankruptcy Lawyer to Handle My Case in Tennessee?

While it is not required, hiring a bankruptcy lawyer can prove to be an incredibly helpful and beneficial decision. You may be concerned about racking up additional expenses, but when you hire Kerney Law Firm, we believe in doing everything we can to help you overcome your financial difficulties as well as bring you out of debt and into financial freedom. Our goal is to make you feel confident in your expenditures by giving you high-quality service.

Schedule a Consultation to Answer Your Debt Relief Questions

Navigating the complex world of bankruptcy and restarting your financial wellness journey can leave you feeling overwhelmed and confused. Fortunately, this does not need to be the case. Contact Kerney Law Firm today to schedule a consultation and find out how we can help you protect your finances and your future.