Bankruptcy Law Firm Memphis, TN Trusts Explains Bankruptcy Indicators

Bankruptcy Law Firm Memphis TNIn most cases, a person may not realize that they have put themselves into deep financial trouble immediately. At times, a person can incur debt over a long period of time. For some, it can be shocking to find that they suddenly are unable to make even their monthly minimum payments or lack the liquidity to pay their mortgage on a monthly basis.

Bankruptcy can be scary, especially when it is looming overhead. You may not be sure of what the outcome may be. Thankfully, the Memphis, TN bankruptcy law firm of Darrell Castle & Associates, PLLC have experience with managing bankruptcy cases. We can go over your particular situation and develop a plan of action. With our assistance, you can have a clearer idea of the road ahead, putting your mind at ease.

Signs You Have Too Much Debt

Some people may not even realize the extent of their debt until they begin to look at it all together. Sometimes, this doesn’t even happen until they begin to realize that the majority of their finances go towards paying for their expenses, with little left over at the end of every month. Here are some common signs that you may have too much debt on your hands:

  • You are only able to pay the minimum on your balances. In some situations, you may not even be able to meet this requirement.
  • Debt collectors are calling you incessantly.
  • You are experiencing a substantial amount of stress or physical side effects as a result of the financial burden you are carrying. Other symptoms could include lack of sleep, headaches, anxiety, and depression.
  • You are avoiding going over your debt and coming up with a plan because you fear that you will be unable to manage it.
  • Your bills are not paid on time because you do not have enough to pay them. This can result in late fees and a significant impact on your credit score.
  • You are regularly using a credit card to cover your daily expenses such as groceries, gas, and other incidentals. By doing this, you are digging yourself into a deeper hole.
  • If you are unable to save because your expenses are too high, it may be time to speak with a member of a bankruptcy law firm in Memphis, TN who can help you figure out how to have better financial health.
  • You are not able to get credit approval because your debt to income ratio is too high.

Knowing the signs that you are carrying a heavy debt load may be helpful when recognizing whether or not you should speak with a debt counselor. This will be important prior to considering bankruptcy. It may be possible for you to avoid bankruptcy with a solid financial plan. This is far more attractive than filing for bankruptcy, which will carry a mark on your credit for a number of years.

Call us today to set up a free consultation at our bankruptcy law firm Memphis, TN clients recommend. A member of our legal team is standing by and ready to assist you. Don’t keep stressing over whether bankruptcy is the right decision for you. It’s time to take action so that you can take back control of your financial health.

About Bankruptcy and Debt Discharge

We live in a fast-paced and costly world. At times, we may feel as though we cannot keep up with the unpaid bills that keep piling high in our mailbox. We may also feel overwhelmed trying to figure out how we are supposed to pay these debts back when expenses outweigh our income.

For some, the option of filing for bankruptcy may eventually seem like the only reliable option left. It is a good idea to do plenty of research before making this big life decision. Yes, your debt can be eliminated after filing for bankruptcy. However, there are exclusions to this rule and there are payments you may still have to make. Many people choose to consult with a Memphis, TN bankruptcy law firm during the bankruptcy process.

When trying to evaluate your current financial status, you can rely on the advice of a bankruptcy attorney at Darrell Castle & Associates, PLLC. We understand this is likely a very trying and emotional time for you. It can be agonizing to realize that you need help. We are a bankruptcy law firm of compassionate and strategic attorneys in Memphis, TN that will do what we can to get you through this period of hardship.

Bankruptcy In the Short-Term
After filing for bankruptcy, you are from then on protected from creditors. Collection efforts held against you are immediately stopped. This means your creditors must halt from contacting you through any means, including phone calls, emails or letters. Creditors can also be prevented from attempting to repossess property and/or foreclosing your home.

Different Types of Bankruptcy
When filing for bankruptcy, there are three main types that are available. The differences between each type are listed as follows:

  • Chapter 7 Bankruptcy: This process usually takes around two to three months, in which your property is sold in order to pay your debts.
  • Chapter 13 Bankruptcy: This is a three to five year process where you have to pay towards a portion of your owed debts, with a court supervised payment plan.
  • Chapter 11 Bankruptcy: This type of bankruptcy is used most often by business debtors, but some individuals with a steep amount of debts and assets may be eligible.

Debts That May Not Be Discharged
Contrary to what many people believe about bankruptcy, all of your debts may not be eliminated. Debts that may be exempt from discharge can include:

  1. Student loans
  2. Enforced restitution due to a criminal sentence
  3. Child support and/or alimony payments
  4. Debts for income and property taxes
  5. Debts that were not listed in the bankruptcy application
  6. Fines owed to a government organization

At Darrell Castle & Associates, PLLC, we have been committed to helping our clients get through troublesome financial times by offering legal advice and guidance. We can empathize with the stress you may be enduring. We know how important it is to obtain financial stability. Our bankruptcy law firm Memphis, TN clients recommend can help you decide if filing for bankruptcy is the best resource for your short-term and long-term financial future.