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Frequently Asked Questions

What Types of Bankruptcy Cases Does Walker, Walker & Walker Handle?

At Walker, Walker & Walker, PLC, we focus primarily on Chapter 7 and Chapter 13 bankruptcy cases for individuals and families throughout West Tennessee. Whether you are dealing with crushing credit card debt, unmanageable medical bills, a pending foreclosure, or relentless creditor calls, our bankruptcy attorneys are here to help.

Chapter 7 bankruptcy — sometimes called “liquidation bankruptcy” — is designed for people who need a fresh start fast. It can wipe out most unsecured debts in as little as 3 to 4 months. Chapter 13 bankruptcy — often called a “wage earner’s plan” — allows you to reorganize your debts and create a manageable repayment plan over 3 to 5 years, which is especially useful if you want to save your home from foreclosure.

With over 40 years of experience serving clients in Lexington, Jackson, Dyersburg, and throughout West Tennessee, our team has helped thousands of people just like you get back on solid financial ground. We know Tennessee bankruptcy law inside and out, and we are ready to put that knowledge to work for you.

This is one of the most important questions you can ask, and the honest answer is: it depends on your specific financial situation. Bankruptcy is not the right solution for everyone, but for many people in West Tennessee struggling with debt, it can truly be life-changing.

You may want to seriously consider filing for bankruptcy if you are facing one or more of the following situations:

  • Your monthly debt payments are consuming most of your income and there is nothing left at the end of the month
  • You are being threatened with foreclosure on your home
  • Creditors are garnishing your wages or threatening to do so
  • You are receiving constant collection calls and letters that feel overwhelming
  • You have tried debt consolidation or repayment plans and they have not worked
  • You are using credit cards to pay for everyday necessities like groceries and utilities
  • Your total unsecured debt (credit cards, medical bills, personal loans) far exceeds what you could realistically pay back in the next few years

The best way to know for sure is to schedule a free consultation with one of our experienced bankruptcy attorneys at Walker, Walker & Walker. We will take the time to review your income, your debts, your assets, and your goals — and give you an honest recommendation about whether Chapter 7 or Chapter 13 bankruptcy makes sense for your situation.

Understanding the difference between Chapter 7 and Chapter 13 bankruptcy is one of the most important steps in deciding which path is right for you. Both are legitimate legal tools designed to give people in financial crisis a real opportunity to start over, but they work in very different ways.

Chapter 7 Bankruptcy — The Fresh Start Option

Chapter 7 is the most common form of personal bankruptcy filed in Tennessee. It is designed for people who do not have enough income to pay back their debts. In a Chapter 7 case, most or all of your unsecured debts — such as credit card balances, medical bills, and personal loans — can be completely eliminated (discharged) by the bankruptcy court. The process typically takes just 3 to 4 months from the time you file. To qualify, you must pass the Tennessee “means test,” which compares your income to the state median income.

Chapter 13 Bankruptcy — The Reorganization Option

Chapter 13 is the better choice for people who have a steady income but have fallen behind on secured debts like a mortgage or car loan. Instead of eliminating your debts outright, Chapter 13 lets you create a court-approved repayment plan that lasts 3 to 5 years. At the end of that plan, any remaining qualifying unsecured debt is discharged. One of the biggest advantages of Chapter 13 is that it can stop a foreclosure and give you time to catch up on missed mortgage payments while keeping your home.

At Walker, Walker & Walker, our bankruptcy attorneys will carefully evaluate your income, assets, and debts to determine which chapter gives you the best possible outcome for your specific situation.

This is one of the biggest fears people have when considering bankruptcy — and it is completely understandable. The good news is that filing for bankruptcy does not automatically mean you will lose your home. In fact, bankruptcy can actually be one of the most powerful tools available for saving your home from foreclosure.

If you file Chapter 13 bankruptcy, an automatic stay goes into effect immediately, which legally halts any foreclosure proceedings. Your repayment plan then gives you 3 to 5 years to catch up on past-due mortgage payments while continuing to make your regular monthly payments going forward. Many homeowners in West Tennessee have saved their homes from foreclosure by filing Chapter 13.

If you file Chapter 7 bankruptcy, whether you keep your home depends on a few factors — primarily whether you are current on your mortgage payments and whether your home equity falls within Tennessee’s available exemptions. Tennessee law provides a homestead exemption that protects a certain amount of equity in your primary residence.

The most important thing to understand is that every situation is different. At Walker, Walker & Walker, we have spent over 40 years helping Tennessee families protect their homes and their most important assets. Schedule a free consultation with us and we will give you a clear, honest picture of where you stand.

Yes — and this is one of the most immediate and powerful benefits of filing for bankruptcy. The moment you file a bankruptcy petition, federal law triggers what is known as the “automatic stay.” This is a legal order that immediately stops most creditors from taking any collection action against you.

What the Automatic Stay Can Stop:

– Wage garnishments — creditors must immediately cease taking money from your paycheck

– Bank levies and account seizures

– Creditor phone calls, letters, and other collection attempts

– Lawsuits filed by creditors or debt collectors

– Foreclosure proceedings (at least temporarily)

– Vehicle repossession

The automatic stay goes into effect the moment your bankruptcy case is filed — not weeks later, but that same day. If a creditor continues to pursue collection actions against you after you have filed, they may be in violation of federal bankruptcy law and could face serious legal consequences.

For many of our clients at Walker, Walker & Walker, the relief they feel when the phone stops ringing and the garnishment stops coming out of their paycheck is immediate and profound. If you are being harassed by creditors or having your wages garnished, contact our office right away. We serve clients in Jackson, Lexington, Dyersburg, and throughout West Tennessee, and we are ready to help you get that protection in place as quickly as possible.

The timeline for your bankruptcy case depends largely on which chapter you file under, but here is a general breakdown of what you can expect when you work with Walker, Walker & Walker.

Chapter 7 Bankruptcy Timeline

Most Chapter 7 cases in Tennessee are completed in approximately 3 to 4 months from the date of filing. Here is how that typically breaks down:

  • Initial consultation and document preparation: 1 to 3 weeks
  • Filing your petition with the bankruptcy court: happens once all documents are ready
  • Meeting of Creditors (341 Meeting): typically scheduled 3 to 5 weeks after filing
  • Discharge of eligible debts: usually granted 60 days after the Meeting of Creditors if no issues arise

Chapter 13 Bankruptcy Timeline

Chapter 13 is a longer process by design. Your repayment plan runs for 3 to 5 years, depending on your income and the amount of debt you owe. Once you complete all required plan payments, your remaining eligible unsecured debts are discharged.

What Affects the Timeline?

Factors that can affect how quickly your case moves include how quickly you gather the required documents, whether creditors object to any part of your filing, and whether there are any complications in your particular case.

Our team at Walker, Walker & Walker will guide you through every step of the process and keep you informed along the way. We have been doing this for over 40 years, and we know how to keep things moving efficiently.

This is one of the most common concerns we hear from people considering bankruptcy — and it is based on a fear that is largely overstated. Yes, filing for bankruptcy does have an impact on your credit score. But no, it does not ruin your credit forever. In fact, for many people who are already drowning in debt and missing payments, bankruptcy can actually be the first step toward rebuilding a stronger credit profile.

Chapter 7 bankruptcy remains on your credit report for 10 years from the date of filing. Chapter 13 bankruptcy stays on your report for 7 years. These are the maximum time frames under federal credit reporting law.

Here is the reality that many people do not realize: once your debts are discharged, you no longer have a mountain of unpaid bills dragging down your score. Many of our clients at Walker, Walker & Walker begin to see meaningful credit score improvements within 12 to 24 months of their discharge, especially if they take intentional steps to rebuild — such as opening a secured credit card, making all payments on time, and keeping balances low.

Bankruptcy vs. Continuing to Struggle

It is also worth considering what staying in debt does to your credit. Missed payments, collection accounts, lawsuits, and judgments are all damaging to your credit score too — and they can go on indefinitely. For many people, bankruptcy actually stops the bleeding faster than any alternative.

Our attorneys will be honest with you about what to expect and can point you toward resources to help you rebuild your financial life after your case is closed.

Not all debts are treated equally in bankruptcy. Understanding which of your debts can be discharged (eliminated) and which ones cannot is a critical part of deciding whether bankruptcy makes sense for your situation.

Debts That CAN Typically Be Discharged:

– Credit card balances

– Medical bills and hospital expenses

– Personal loans and payday loans

– Utility bills

– Most civil judgments (unless fraud-related)

– Lease obligations (for property you are walking away from)

– Some older income tax debts (with specific qualifications)

Debts That CANNOT Be Discharged:

– Child support and alimony obligations

– Most student loan debt (though there are limited exceptions)

– Recent federal, state, and local income taxes

– Debts incurred through fraud or false pretenses

– Criminal fines and restitution

– Debts for personal injury caused by drunk driving

– Most recent tax debts

Understanding this distinction is important because it affects the overall benefit you will receive from filing bankruptcy. If the majority of your debt consists of dischargeable obligations like credit card debt and medical bills, bankruptcy could offer you a nearly complete financial reset. If most of your debt is student loans, you may need to explore other options in addition to bankruptcy.

At Walker, Walker & Walker, we will carefully analyze every debt you owe and give you a realistic picture of what bankruptcy can and cannot do for you. We have been providing honest, experienced bankruptcy counsel to West Tennessee residents for over 40 years.

This is a completely fair and important question — especially when you are already under financial stress. The cost of filing bankruptcy in Tennessee has two main components: the court filing fee and attorney fees.

Court Filing Fees

The U.S. Bankruptcy Court charges a filing fee for every bankruptcy case. As of the time of this writing, the standard fee for a Chapter 7 case is \$338 and the fee for a Chapter 13 case is \$313. If your income is very low, you may qualify to have this fee waived or paid in installments.

Attorney Fees

Attorney fees vary depending on the complexity of your case, the type of bankruptcy you are filing, and the law firm you choose. At Walker, Walker & Walker, we work hard to keep our fees accessible and we are transparent about costs from the very beginning. We also offer flexible payment plan options, because we understand that affordability is often a major concern for people who are considering bankruptcy.

Is It Worth Hiring an Attorney?

We get this question a lot. You can technically file for bankruptcy without an attorney — this is called filing “pro se.” But the bankruptcy process involves strict rules, legal deadlines, required forms, and court appearances. Mistakes can result in your case being dismissed, your discharge being denied, or even allegations of fraud. Having an experienced bankruptcy attorney in your corner protects you and dramatically improves the likelihood of a successful outcome.

Call us at (800) 748-9889 to get a clear picture of the costs involved for your specific situation. Your initial consultation is always free.

Coming prepared to your consultation helps us give you the most accurate assessment possible and makes the entire process move faster. You do not need to have everything perfectly organized — we will help you sort through what matters. But having the following information ready will make a big difference.

Income and Employment Documents:

– Recent pay stubs (last 2 to 3 months)

– Your last two years of federal tax returns

– Bank statements for the past 2 to 6 months

– Documentation of any other income sources (self-employment, rental income, Social Security, etc.)

Debt and Creditor Information:

– A list of all your creditors and the amounts you owe

– Recent billing statements for credit cards, medical bills, and loans

– Any collection notices or demand letters you have received

– Information on any lawsuits, judgments, or garnishments against you

Asset Information:

– Approximate value of any real estate you own (or your current mortgage statements)

– Vehicle information (make, model, year, approximate value, loan balance)

– Retirement account and bank account balances

– Any other significant assets

Other Helpful Documents:

– Mortgage documents if you are facing foreclosure

– Divorce decrees or separation agreements if applicable

You do not need to have every single document before calling us. Our team at Walker, Walker & Walker will walk you through exactly what you need. We have offices in Lexington, Jackson, and Dyersburg, and we offer free initial consultations because we believe everyone deserves access to honest legal advice before making one of the most important financial decisions of their life.

In most cases, yes — you can keep your car when you file for bankruptcy in Tennessee, as long as you meet certain conditions. This is one of the most common questions our clients ask, and the answer largely depends on which type of bankruptcy you file and how much equity you have in the vehicle.

Keeping Your Car in Chapter 7 Bankruptcy

In a Chapter 7 case, you can typically keep your vehicle if:

– You are current on your car loan payments (or can catch up quickly)

– The equity you have in the vehicle falls within Tennessee’s motor vehicle exemption

– You reaffirm the car loan debt with the lender (essentially agreeing to remain personally responsible for the loan)

Tennessee law allows you to exempt a certain amount of equity in your vehicle. If your car’s value minus what you owe is within that exemption limit, the trustee cannot take it to pay your creditors.

Keeping Your Car in Chapter 13 Bankruptcy

Chapter 13 is often a better option if you are behind on your car loan payments. Your repayment plan can include catching up on missed payments over time, and in some cases, Chapter 13 may even allow you to reduce the principal you owe on your vehicle through a process called a “cramdown” — bringing the loan balance down to the car’s actual market value.

Every situation is different, and the specific details of your car loan, your equity, and your income all matter. At Walker, Walker & Walker, we will walk through your vehicle situation carefully and make sure you understand all of your options before we file anything.

This is one of the most important comparisons people need to understand when they are overwhelmed by debt. Debt settlement and debt consolidation are widely advertised, but they are not always the best — or even a good — option for everyone. Here is an honest breakdown.

Debt Settlement

Debt settlement involves negotiating with creditors to accept less than the full amount you owe, often through a third-party settlement company. The problems with this approach include: settlement companies often charge significant fees, the process can take years, your credit gets damaged in the meantime (since you stop paying), creditors are not obligated to settle, and any forgiven debt may be taxable as income.

Debt Consolidation

Debt consolidation combines multiple debts into a single loan or payment plan, ideally at a lower interest rate. This can work for some people, but if your debt load is simply too large relative to your income, consolidation does not actually eliminate the debt — it just reorganizes it.

Why Bankruptcy Can Be the Better Choice

Bankruptcy, when handled by an experienced attorney, provides legal protections that no debt settlement company can offer. The automatic stay immediately stops collection actions, garnishments, and foreclosure. Dischargeable debts are completely eliminated, not just reduced. The entire process is supervised by a federal court, providing real legal protection. And contrary to popular belief, many people begin rebuilding their credit within 1 to 2 years after their discharge.

At Walker, Walker & Walker, we do not recommend bankruptcy to everyone. But after over 40 years of helping West Tennessee families navigate debt crises, we have seen firsthand that for people with significant unsecured debt and no realistic path to repayment, bankruptcy often provides faster and more complete relief than any alternative.

The bankruptcy means test is a calculation required by federal law to determine whether you qualify to file Chapter 7 bankruptcy. It was introduced as part of the Bankruptcy Abuse Prevention and Consumer Protection Act and is designed to ensure that people who have the financial ability to repay their debts through a Chapter 13 plan do not simply eliminate them through Chapter 7.

Here is How the Tennessee Means Test Works:

Step 1 — Compare Your Income to the Tennessee Median

The first step is to compare your average monthly income over the past six months to the median income for a household your size in Tennessee. If your income is at or below the Tennessee median, you automatically pass the means test and qualify for Chapter 7.

As a general reference, Tennessee’s median income thresholds are updated periodically by the U.S. Trustee Program. Our attorneys will use the most current figures when evaluating your eligibility.

Step 2 — The Disposable Income Calculation

If your income exceeds the state median, you do not automatically disqualify from Chapter 7. Instead, a second calculation is performed that looks at your allowable monthly expenses and determines how much disposable income you have left. If that disposable income is below a certain threshold, you may still qualify for Chapter 7.

What If You Do Not Pass the Means Test?

If you do not qualify for Chapter 7 based on the means test, Chapter 13 bankruptcy may still be a powerful option for you. In a Chapter 13 case, you repay a portion of your debts over 3 to 5 years based on your disposable income — and any remaining eligible debt is discharged at the end of your plan.

The means test calculation can be complex, but our experienced bankruptcy attorneys at Walker, Walker & Walker will walk you through every step. Contact us for a free consultation at our offices in Jackson, Lexington, or Dyersburg.

Yes — filing for bankruptcy is one of the most powerful legal tools available to Tennessee homeowners facing foreclosure. If you are behind on your mortgage and your lender has initiated or is threatening foreclosure proceedings, bankruptcy can stop that process — often immediately.

How Bankruptcy Stops Foreclosure

The moment you file a bankruptcy petition, federal law activates the automatic stay. This is a legally binding order that halts virtually all collection actions, including foreclosure. Your mortgage lender cannot proceed with a foreclosure sale while the automatic stay is in place — even if a sale date has already been scheduled.

Chapter 13 Is the Most Powerful Tool for Saving Your Home

While Chapter 7 can temporarily stop a foreclosure through the automatic stay, Chapter 13 provides a much more comprehensive long-term solution. Here is why:

Under Chapter 13, you can create a court-approved repayment plan that allows you to catch up on all of your past-due mortgage payments (called “arrears”) over a period of 3 to 5 years. While you are in the plan, you continue making your regular monthly mortgage payment to your lender. As long as you stay current on both your plan payments and your ongoing mortgage payments, your lender cannot foreclose.

Thousands of West Tennessee homeowners have used Chapter 13 bankruptcy to keep their homes when foreclosure seemed inevitable. It is not an easy process, but with the right legal guidance, it is absolutely possible.

Do Not Wait If You Are Facing Foreclosure

Time is critical when foreclosure is involved. The sooner you contact Walker, Walker & Walker, the more options we have available to help you. We have offices in Jackson, Lexington, and Dyersburg, and we offer free consultations. Call us today at (800) 748-9889.

When you are facing a financial crisis, the law firm you choose matters enormously. Bankruptcy is a complex area of federal law with strict deadlines, required filings, and court appearances — and the stakes are high. At Walker, Walker & Walker, PLC, we have spent over 40 years earning the trust of thousands of families across West Tennessee, and we believe there are some very specific reasons why our clients continue to choose us.

Over 40 Years of Bankruptcy Experience in Tennessee

There is no substitute for experience. Since our firm was established, we have helped thousands of individuals and families in Lexington, Jackson, Dyersburg, and throughout West Tennessee successfully navigate the bankruptcy process. We know the local courts, the local trustees, and the nuances of Tennessee bankruptcy law at a level that only comes from decades of practice.

A Team That Truly Cares About Your Outcome

We know that picking up the phone to call a bankruptcy attorney is not easy. It takes courage to confront a financial crisis head-on, and we treat every client with the dignity and respect they deserve. Our team takes the time to understand your unique situation — not just the numbers, but the circumstances that brought you here and the goals you have for your future.

Convenient Locations Across West Tennessee

With offices in Jackson, Lexington, and Dyersburg, we make it easy for clients throughout the region to access experienced bankruptcy representation without having to travel far.

Free Initial Consultations

We offer free initial consultations because we believe you should be able to get honest, professional legal advice before committing to anything. We will review your debts, your income, your assets, and your situation — and give you a clear, no-pressure recommendation about whether bankruptcy is the right path for you.

If you are ready to take the first step toward financial freedom, we are ready to walk that road with you. Call us today at (800) 748-9889.

Ready to Take the First Step?

Call Walker, Walker & Walker, PLC today for your FREE consultation: (800) 748-9889

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