Legal Counsel for Chapter 7 Bankruptcy in Murfreesboro, TN

What is Chapter 7 bankruptcy?

Chapter 7 bankruptcy, sometimes called liquidation, is a legal declaration that you cannot pay what you owe your creditors. Instead of struggling to make any future payments or being bothered by constant attempts to collect on overdue bills, the court will assign a “trustee” to review your financial situation and create a plan of repayment or debt forgiveness. This process varies widely depending on each debtor’s personal financial records, history, and income, so it’s important to have a good lawyer standing by you to help you understand your unique proceedings.

Benefits of Chapter 7 bankruptcy

A good pros and cons list can help clarify any issue to make a decision. This list is general and incomplete because it doesn’t take into account your personal financial situation, so it’s not the legal opinion of Fraley & Laxton, but it can be used as a tool to get familiar with the concepts. Please contact the office directly and schedule a consultation for professional, personalized legal advice.

Let’s start with the benefits of pursuing Chapter 7 bankruptcy when you’re unable to pay your bills anymore. The first and primary reason many people in debt choose this bankruptcy filing is because it’s the fastest way to move through the legal process and emerge on the other side to start living life again. In around six months, you can move from filing for Chapter 7 to full debt relief. The bankruptcy is still part of your financial record, but it won’t take as much of your personal time and energy. Many people also consider this method to be the easiest, because there is no minimum amount of debt you must have to file for bankruptcy (although there may be other income requirements to consult on with your lawyer).

Next, let’s talk about your property. With help to structure you proceedings correctly, it’s possible to keep most, if not all, of your personal assets and property instead of being forced to surrender them to creditors. In fact, the moment you file for Chapter 7 bankruptcy, you get a “stay” on all your debts, meaning you do not have to make any more payments to creditors, and they must stop calling or pursuing you for payment.

Then there’s your credit. Because the bankruptcy stays on your record, you may experience higher interest rates if you take on debt in the future. However, filing a Chapter 7 bankruptcy means your former creditors can’t claim any future payments you receive — you’re free and clear of them — so you’ll be able to earn money and spend it as you need to.

Potential drawbacks of Chapter 7 filing

Now let’s outline some of the challenges of filing for Chapter 7 bankruptcy, which are a good illustration of why you need professional legal counsel to help you understand the benefits and drawbacks in your own unique situation.


The personal property you’re allowed to keep should be related to your ability to work. You’ll need a good legal team to help you outline what types of property fill that legal requirement so you don’t sacrifice things you already own unnecessarily. Another reason you’ll need a good legal team like the attorneys at Fraley & Laxton Attorneys at Law is that courts retain the right to change your Chapter 7 bankruptcy to a Chapter 13 bankruptcy under certain conditions. To retain control of how you want the bankruptcy to proceed, proper planning and execution from an experienced team is essential for an efficient, smooth process.


As mentioned in the benefits list, filing any kind of bankruptcy will appear on your financial records, and likely impact the interest rates you pay and your credit score overall. Because this bankruptcy is on your record, you also won’t be able to file for Chapter 7 again for at least several years — although this may not be very important, because the goal is that you won’t need to consult a bankruptcy attorney ever again.


Finally, there are some types of debt that are not forgiven by declaring Chapter 7 bankruptcy. This is why you need the team at Fraley & Laxton Attorneys at Law to help you evaluate not only how much debt you have, but how the types of debt will be impacted by a bankruptcy filing.

If you have questions about filing for bankruptcy, call today! (615) 410-7290