Learn more about what Chapter 7 and Chapter 13 means...

​Understanding Chapter 7 and Chapter 13 Bankruptcy in Tennessee
Law Office of Verner Smith – Jackson, TN
📞 (731) 423-1888

If you're facing overwhelming debt, you’re not alone — and you do have options. At the Law Office of Verner Smith, we help individuals and families across West Tennessee understand the paths available under U.S. bankruptcy law. Two of the most common options are Chapter 7 and Chapter 13 bankruptcy — each designed to give people a fresh financial start under very different circumstances.

Chapter 7 Bankruptcy: A Fresh Start
Chapter 7 bankruptcy, often called “liquidation bankruptcy,” is typically designed for individuals who are unable to repay their debts. In many cases, this can allow for the discharge of most unsecured debts, such as credit card balances and medical bills.

It’s important to know that eligibility for Chapter 7 depends on your income and financial situation. We’ll guide you through the process and help determine if this option is right for you.

Chapter 13 Bankruptcy: A Path to Repayment
Chapter 13, sometimes called the “wage earner’s plan,” is ideal for individuals with regular income who are struggling to keep up with debt payments. It allows you to restructure your debts into a manageable payment plan over a period of time — and may even help stop foreclosure or repossession.

Chapter 13 may be a good fit if you're behind on your mortgage or car loan but want to keep your property. It can also help consolidate debts into a single monthly payment.

Why This Matters Now
Recent trends show that both Chapter 7 and Chapter 13 filings are rising nationwide, as families feel the effects of inflation, medical debt, and job uncertainty. Choosing the right type of bankruptcy — or exploring alternatives — can make a long-term difference in your financial future.

You Don’t Have to Navigate This Alone
Bankruptcy law is complex, but you don’t have to figure it out by yourself. At the Law Office of Verner Smith, we’ve helped thousands of Tennesseans take back control of their finances with straightforward advice and personalized legal support.

We’ll sit down with you, look at your full financial picture, and explain what options make the most sense for your situation. Whether you need a fresh start or a structured way to catch up, we're here to help.

📞 Call us today at (731) 423-1888 to schedule your consultation.
Take the first step toward peace of mind — we’re ready when you are.