As a bankruptcy attorney in Collierville, TN understands, bankruptcy is one of the most complex and difficult decisions that individuals who are struggling with debt can face. The journey to bankruptcy looks different for everyone, and there are many variables that can lead to a person declaring bankruptcy. However, sometimes bankruptcy may be the best option despite its drawbacks and disadvantages. It is far from an easy process, but a lawyer can provide the legal assistance to help you go through it as smoothly as possible.
Bankruptcy Attorney in Collierville, TN
The law firm of Darrell Castle & Associates PLLC has helped many clients over the years obtain financial relief. With their skills, legal support and experience, the dedicated attorneys at the firm have successfully assisted clients so that they can get back on track to financial freedom. Having been in practice for over 30 years, they have specialized in a number of practice areas including bankruptcy. As professionals who are highly knowledgeable in bankruptcy law and many types of debt relief solutions, they can help you explore the options best applicable for your financial situation.
What is Bankruptcy?
Bankruptcy is a legal process where an individual who has debt and is no longer able to manage it files a petition so that they are relieved of it. It provides debtors a second chance and a way to pay off their debts. Many but not all types of debt can be discharged through bankruptcy, as a bankruptcy attorney from Collierville, TN like one from Darrell Castle & Associates, PLLC can explain. During a bankruptcy proceeding, the debtor lists their assets and has them evaluated. Debtors have the option of using their assets to pay a portion of their debt. Depending on the type of bankruptcy the person is eligible for, they can complete the process over a few months or years.
Types of Bankruptcy
While there are several types of bankruptcy, individuals generally file for Chapter 7 or Chapter 13 bankruptcy. Each has their own set of advantages and disadvantages. The differences between the two are outlined below:
- Chapter 7. Individuals can be discharged of eligible unsecured debts through Chapter 7 bankruptcy. Unsecured debts include medical bills, utility bills, and credit card debt. Student loans and taxes are not eligible to be discharged under Chapter 7 bankruptcy. However, the individual must sell their certain nonexempt assets, such as stocks and other properties, as a condition to file for this type of bankruptcy. The entire process can be completed in as little as four to six months.
- Chapter 13. Unlike Chapter 7 bankruptcy, debtors who wish to keep their property and assets can file for Chapter 13 bankruptcy. People who have a high income typically qualify for Chapter 13. They agree to a monthly repayment plan to pay off the remaining debt. This process is much longer and can take three to five years to complete.
Legal Assistance is Available Now
Bankruptcy should be considered as a last resort. To explore debt relief alternatives and determine if bankruptcy is right for you, schedule a consultation with a top bankruptcy attorney that Collierville, TN residents depend on.