If you’re considering filing bankruptcy in Knoxville, TN, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

Qualifying for bankruptcy in Knoxville, Tennessee, or anywhere else in the United States involves meeting specific eligibility criteria set forth in federal bankruptcy laws. Bankruptcy is designed to provide financial relief to individuals or businesses struggling with overwhelming debt, but not everyone can file for bankruptcy.

1. Chapter 7 Bankruptcy Eligibility: Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” is designed for individuals or businesses with limited income and assets. To qualify for Chapter 7 bankruptcy in Knoxville, TN, you need to meet the following criteria:
   • Means Test: The Means Test is a crucial element in Chapter 7 eligibility. It compares your income to the median income for your household size in Tennessee. If your income is below the median, you generally qualify. However, if your income is above the median, you may still qualify after deducting certain allowable expenses.
   • No Recent Chapter 7 Discharge: You cannot file for Chapter 7 bankruptcy if you received a discharge in a previous Chapter 7 case within the past 8 years.
   • No Recent Chapter 13 Discharge: You cannot file for Chapter 7 bankruptcy if you received a discharge in a previous Chapter 13 case within the past 6 years.
   • No Fraudulent or Criminal Activities: If you engaged in fraudulent or criminal activities related to your bankruptcy, you may be disqualified.
   • Credit Counseling: You must complete a credit counseling course from an approved agency within 180 days before filing for Chapter 7 bankruptcy.
2. Chapter 13 Bankruptcy Eligibility: Chapter 13 bankruptcy, also known as “reorganization bankruptcy,” allows individuals with a regular income to create a repayment plan to settle their debts over three to five years. To qualify for Chapter 13 bankruptcy in Knoxville, TN, you should meet the following criteria:
   • Regular Income: You need to have a reliable source of income to fund your proposed repayment plan.
   • Debt Limits: There are limits to the amount of secured and unsecured debt you can have to file for Chapter 13 bankruptcy.
   • No Recent Chapter 13 Discharge: You cannot file for Chapter 13 bankruptcy if you received a discharge in a previous Chapter 13 case within the past 2 years or within 4 years if you received a Chapter 7 discharge first.
   • Credit Counseling: As with Chapter 7, you must complete a credit counseling course from an approved agency within 180 days before filing for Chapter 13 bankruptcy.
   • Feasible Repayment Plan: Your proposed repayment plan must be feasible, meaning it can realistically repay your debts within the allowed time frame.

In addition to these general eligibility criteria, there are specific requirements and procedures in Knoxville, TN, and the Eastern District of Tennessee’s bankruptcy court that you must follow when filing for bankruptcy. It’s highly advisable to consult with an experienced bankruptcy attorney who can guide you through the process, assess your eligibility, and help you determine the most suitable bankruptcy chapter for your financial situation.

RESOURCES:

Do You Need a Lawyer to File For Bankruptcy in Knoxville, TN?

Filing for bankruptcy in Knoxville, Tennessee, or anywhere else in the United States is possible without an attorney, but whether you should proceed without legal representation depends on several factors. While it’s not a legal requirement to have a lawyer when filing for bankruptcy, having an attorney can significantly benefit you throughout the process.

Filing for Bankruptcy Without an Attorney:

1. Cost Savings: One of the primary reasons individuals consider filing without an attorney is to save money on legal fees. Filing fees associated with bankruptcy can be expensive, and some people may believe they can handle the process on their own to avoid additional costs.
2. Pro Se Filing: Filing for bankruptcy without an attorney is known as filing “pro se.” It is legally allowed, and the bankruptcy court will provide forms and instructions for pro se filers. However, it’s essential to understand that bankruptcy law is complex, and mistakes can have serious consequences.
3. Chapter 7 Simplicity: If you’re filing for Chapter 7 bankruptcy and have a relatively straightforward financial situation, you may be able to navigate the process on your own more easily than with Chapter 13, which involves a repayment plan.

Filing for Bankruptcy With an Attorney:

1. Legal Expertise: Bankruptcy law is intricate and subject to change. An experienced bankruptcy attorney is well-versed in the latest laws, court procedures, and requirements, ensuring that your case is handled correctly and in compliance with all regulations.
2. Customized Advice: An attorney can assess your unique financial situation and provide guidance on the most suitable bankruptcy chapter for your needs, either Chapter 7 or Chapter 13. They can help you understand the pros and cons of each option and tailor a strategy to maximize your benefits.
3. Protection from Errors: Filing for bankruptcy involves extensive paperwork and strict deadlines. An attorney can help you avoid costly errors and omissions that may result in case dismissal, the loss of assets, or other adverse outcomes.
4. Creditor Negotiation: Attorneys can negotiate with creditors on your behalf, potentially helping you achieve more favorable terms within a Chapter 13 repayment plan.
5. Legal Representation in Court: If issues arise during your bankruptcy case, an attorney can represent you in court, ensuring your rights and interests are protected.
6. Debt Discharge Maximization: A skilled attorney can help you structure your bankruptcy petition to maximize the discharge of your eligible debts, ultimately giving you a fresh financial start.
7. Stress Reduction: Bankruptcy can be an emotionally taxing process. Having an attorney can alleviate some of the stress and uncertainty by providing expert guidance and support.

While it’s possible to file for bankruptcy without an attorney, it’s generally advisable to seek legal representation, especially if your financial situation is complex or if you’re filing for Chapter 13 bankruptcy. Bankruptcy laws are intricate, and even small mistakes can lead to significant consequences.

Cost to File Chapter 7 Bankruptcy in Knoxville, TN

The cost to file for Chapter 7 bankruptcy in Knoxville, Tennessee, involves several fees and expenses that are generally consistent with the fees mandated by federal bankruptcy laws. However, it’s important to note that these fees may change over time, so it’s essential to verify the current costs with the U.S. Bankruptcy Court for the Eastern District of Tennessee or consult with a bankruptcy attorney for up-to-date information.

Here’s a breakdown of the typical costs associated with filing for Chapter 7 bankruptcy in Knoxville:

1. Filing Fee: The filing fee for a Chapter 7 bankruptcy petition in Knoxville, TN is approximately $410. This fee is paid to the bankruptcy court and is non-refundable. It’s essential to check the current filing fee with the court or your attorney since this amount may have changed.
2. Credit Counseling Fee: Before filing for bankruptcy, individuals are required to complete a credit counseling course from an approved agency. The cost of this course varies but typically ranges from $28 to $62. This fee can also change over time, so verify the current cost with the approved agencies in your area.
3. Attorney Fees: While not a direct court fee, if you choose to hire an attorney to assist with your Chapter 7 bankruptcy case, you will need to pay attorney fees. Attorney fees can vary widely depending on your location and the complexity of your case. Some attorneys offer payment plans to make their services more accessible. It’s crucial to discuss fees and payment arrangements with your chosen attorney upfront.
4. Miscellaneous Costs: There may be additional costs associated with your Chapter 7 bankruptcy, such as fees for obtaining credit reports, mailing, notary fees, and any other expenses related to gathering and submitting required documents. These costs can vary depending on your specific circumstances.
5. Exemption Costs: If you have assets that are not exempt from liquidation under Chapter 7 bankruptcy, you may incur costs associated with appraisals, valuations, or evaluations of those assets. These expenses are incurred to determine the value of non-exempt property that may be sold to repay creditors.

It’s important to note that individuals with limited income and assets may qualify for a waiver of the filing fee or be allowed to pay it in installments. This waiver is based on their income and household size. Additionally, the court may offer fee reduction or waiver options for the credit counseling course if you can demonstrate financial hardship.

To get an accurate and up-to-date estimate of the costs involved in filing for Chapter 7 bankruptcy in Knoxville, TN, or any other jurisdiction, it’s advisable to contact the U.S. Bankruptcy Court for the Eastern District of Tennessee or consult with a bankruptcy attorney. Legal professionals can provide you with the most current information and help you understand the financial aspects of the bankruptcy process based on your unique circumstances.

Cost to File Chapter 11 Bankruptcy in Knoxville, TN

Filing for Chapter 11 bankruptcy in Knoxville, Tennessee, can be a complex and expensive process, primarily designed for businesses and individuals with significant debts who want to reorganize their finances and continue their operations. The cost of filing for Chapter 11 bankruptcy can vary widely depending on the size and complexity of the case. Here’s a breakdown of the typical costs associated with filing for Chapter 11 bankruptcy:

1. Attorney Fees: The most significant cost associated with Chapter 11 bankruptcy is usually attorney fees. Chapter 11 cases are highly complex and involve extensive negotiations, legal documents, and court appearances. Attorneys typically charge on an hourly basis for their services. The fees can range from several thousand dollars to tens of thousands of dollars, or even more, depending on the complexity of the case and the legal team’s expertise.
2. Filing Fee: The filing fee for a Chapter 11 bankruptcy case is $1,950. This fee must be paid to the bankruptcy court when the case is initiated. It’s essential to check the current filing fee with the U.S. Bankruptcy Court for the Eastern District of Tennessee or consult with an attorney for the most up-to-date information.
3. U.S. Trustee Fees: In addition to the filing fee, Chapter 11 filers are required to pay quarterly fees to the U.S. Trustee’s Office. These fees are based on the debtor’s disbursements and can vary depending on the amount of financial activity within the bankruptcy estate. The U.S. Trustee will provide guidelines for calculating and paying these fees.
4. Creditors’ Committee Expenses: In some Chapter 11 cases, a creditors’ committee may be formed to represent the interests of unsecured creditors. The debtor is generally responsible for the reasonable expenses incurred by the creditors’ committee, including legal and administrative costs.
5. Professional Fees: Apart from attorney fees, there may be other professional fees associated with the case, such as fees for financial advisors, accountants, appraisers, and consultants. These professionals play a crucial role in helping the debtor reorganize and develop a feasible plan.
6. Court Costs: Various court-related costs, such as motion filing fees, hearing fees, and document retrieval fees, may add to the overall expense of the Chapter 11 bankruptcy.
7. Examiner or Trustee Fees: In complex cases, the court may appoint an examiner or trustee to oversee the debtor’s operations or investigate certain matters. The fees associated with these appointments are typically paid from the bankruptcy estate.

Given the high costs and complexity of Chapter 11 bankruptcy, it’s crucial for debtors to work closely with experienced bankruptcy attorneys who can help navigate the process efficiently, develop a viable reorganization plan, and ensure compliance with all legal requirements. Consulting with an attorney is advisable to get a better understanding of the anticipated costs and requirements for a Chapter 11 bankruptcy filing in Knoxville, TN, or any other jurisdiction.

Cost to File Chapter 13 Bankruptcy in Knoxville, TN

Filing for Chapter 13 bankruptcy in Knoxville, Tennessee, is designed to provide individuals with a structured repayment plan to address their debts. The cost of filing for Chapter 13 bankruptcy involves several fees and expenses, and it’s essential to understand these costs before proceeding. Please note that fee amounts can change over time, so it’s important to verify the current fees with the U.S. Bankruptcy Court for the Eastern District of Tennessee or consult with a bankruptcy attorney for up-to-date information. Here is a breakdown of the typical costs associated with filing for Chapter 13 bankruptcy:

1. Filing Fee: The filing fee for a Chapter 13 bankruptcy case in Knoxville, TN, was approximately $365. This fee must be paid to the bankruptcy court when the case is initiated. It’s important to check the current filing fee with the court or your attorney since this amount may have changed.
2. Attorney Fees: While not a court fee, one of the significant costs of a Chapter 13 bankruptcy is attorney fees. Chapter 13 cases are complex, involving the creation of a detailed repayment plan and ongoing interactions with the court and creditors. Attorney fees can vary widely depending on your location, the complexity of your case, and the attorney’s experience. Some attorneys offer payment plans to make their services more affordable.
3. Credit Counseling Fee: Before filing for Chapter 13 bankruptcy, individuals are required to complete a credit counseling course from an approved agency. The cost of this course varies but typically ranges from $25 to $58. Be sure to confirm the current cost with approved agencies.
4. Chapter 13 Trustee Fees: In a Chapter 13 case, a bankruptcy trustee is appointed to oversee the repayment plan. The trustee collects payments from the debtor and distributes them to creditors. The trustee’s fees are typically calculated as a percentage of the payments made to creditors through the plan.
5. Mandatory Debtor Education Course: After filing, debtors are required to complete a debtor education course from an approved provider. The cost of this course varies but is generally similar to the credit counseling course, ranging from $27 to $65.
6. Miscellaneous Costs: There may be additional costs related to your Chapter 13 bankruptcy, such as fees for obtaining credit reports, mailing, notary fees, and any other expenses associated with gathering and submitting required documents.
7. Plan Payments: In a Chapter 13 bankruptcy, you are required to make regular payments to the trustee as outlined in your court-approved repayment plan. These payments will go toward repaying your debts over a three- to five-year period.

It’s essential to work closely with an experienced bankruptcy attorney when filing for Chapter 13 bankruptcy in Knoxville, TN, or any other jurisdiction. An attorney can help you understand the costs associated with your specific case, develop a feasible repayment plan, and navigate the complex legal requirements. They can also help ensure that your interests are protected throughout the bankruptcy process. Consulting with an attorney is an important step in managing your financial difficulties and successfully completing a Chapter 13 bankruptcy.

Reliable Bankruptcy Attorneys in Knoxville, TN

Below is a list of reputable bankruptcy attorneys in Knoxville, TN. They can help you with both personal and business bankruptcy information.

The Law Offices Of Mayer & Newton
8351 E Walker Springs Ln #100, Knoxville, TN 37923, United States

Cindy Lawson & Associates P.C.
6704 Watermour Way, Knoxville, TN 37912, United States

Clark & Washington Attorneys and Counselors at Law
408 S Northshore Dr, Knoxville, TN 37919, United States

William E. Maddox Jr., L.L.C.
608 Mabry Hood Rd #202, Knoxville, TN 37932, United States

The Pope Firm
5315 N Broadway St, Knoxville, TN 37918, United States

Knoxville, TN Zip Codes We Proudly Serve:

37849, 37871, 37902, 37909, 37912, 37914, 37915, 37916, 37917, 37918, 37919, 37920, 37921, 37922, 37923, 37924, 37931, 37932, 37934

---