Bankruptcy FAQs

IF YOU ARE BEHIND ON YOUR MORTGAGE PAYMENTS OR YOUR PAYROLL CHECK OR BANK ACCOUNT IS BEING GARNISHED, SKIP THIS PAGE AND GO TO 'WHAT SHOULD I BRING WITH ME?" I NEED TO SEE YOU NOW.

Find a quiet time to sit down with paper and pencil. You and I will decide if you need my help. We are going to spend next month's income right now. This just takes a few minutes!

A. Estimate the net monthly income of your household from all sources: your income, your spouse's income, child support, disability, etc. Use your check stubs or check book to determine this amount. Estimate your monthly income.

B. Next, estimate your household's average monthly living expenses:

1. Housing (mortgage or rental) payment (does your mortgage payment include insurance and property tax?).

2. Utilities: electric, gas, water, telephone, cell phone, cable, internet.

3. Transportation: car payment(s), car insurance, gas expense, maintenance and repairs.

4. Household: food, clothing, laundry, dry cleaning, entertainment (recreation, clubs, newspaper, magazines) and medical (including dental) expenses.

5. Miscellaneous: everyone's different. Include anything left off above.

Is your income greater than your expenses? If you have money left over, congratulations! Go to Do I Have Other Options?

If you have no money left over, call my office at 615-321-8787.

Most importantly, there may be an alternative to bankruptcy available to you. My goal is to ensure that your financial future is in your hands.

Try the following techniques to see if you can stay away from bankruptcy.

1. Can you make minimum payments each month to your creditors? If so, you'll need to squeeze your budget to pay more than the minimum on your smallest debt. If you don't, you'll only be paying mostly interest. If you can actually pay off your smallest debt, continue to the next smallest until you pay off all debt. You have to be disciplined to achieve success.

2. If you cannot make minimum payments, call each creditor and get a payment commitment in writing that reduces your debt and interest to zero within 60 months. Find out from each creditor what payment you'll need to make. If you can make payments to all your creditors and pay off your debt within 60 months, you do not need bankruptcy.

If you can't use the above techniques, you may still qualify for a Chapter 13 petition because you have money left over. You should be able to schedule lower payments and reduce the interest rate you pay for unsecured debt (such as credit cards) by filing a Chapter 13 bankruptcy petition.

If none of these options work, call my office to make an appointment. During our meeting, we will review your debts and discuss non-bankruptcy as well as bankruptcy procedure. If we decide that you need bankruptcy relief, I will draft your petition, negotiate with your creditors, and represent you at your bankruptcy hearing.

The new bankruptcy law added several tasks that must be completed prior
to filing a bankruptcy. Bankruptcy law is originally based in Federal
law. As such, clients and lawyers in Nashville will follow the same
procedures as clients and lawyers outside of Nashville Tennessee.

Yes. You can still file for bankruptcy relief.

Congress changed bankruptcy law in October 2005. It became more
complicated. I am Certified as a Consumer Bankruptcy Specialist by the
American Board of Certification and the Tennessee Board of Continuing
Education and Certification.

My office can get you qualified for bankruptcy relief if you need to
save your home from foreclosure or simply get rid of oppressive debt.
Bankruptcy relief is now based upon your income and expenses compared
to other people in your same income and expense bracket. Briefly, if
you are below the median for income you may qualify for the most
immediate relief. If you end up with income leftover after deducting
allowed expenses, you will have to pay back a percentage of your debt
up to 100%. Repayment can last up to 60 months and depends upon how
much time you need to payoff your debt.

Call my office for consultation.

Sincerely,
David F Cannon