Bankruptcy Lawyer Covington, TN Bankruptcy Lawyer Covington, TN

If you’re thinking about filing for bankruptcy, it’s time to explore your options with the experienced assistance of a bankruptcy lawyer Covington, TN residents trust. Filing for bankruptcy isn’t the right debt relief solution for every financial challenge. However, filing for bankruptcy relief has helped millions of Americans achieve a fresh financial start. Once you schedule a free case evaluation with our Tennessee-based firm, we’ll assess your financial situation and advise you of your options according to our professional opinion. If your situation is a “good fit” for the bankruptcy process, we can help you create a strong case likely to succeed.

If you’re a small business owner, you’ll likely need to file under Chapter 11 of the Bankruptcy Code. If however, you’re not a small business owner, you’ll probably benefit from filing under either Chapter 7 or Chapter 13. Almost everyone is eligible to file under Chapter 13. However, only members of low-income households are eligible for the particularly generous debt relief offered under Chapter 7. Chances are that if you’re eligible to file for Chapter 7 bankruptcy, this will be your preferred option. However, this process isn’t one you should enter into lightly. If you own a lot of valuable property, you might be better off filing under Chapter 13. Why? Chapter 7 bankruptcy is commonly referred to as “liquidation” bankruptcy. This nickname doesn’t mean much for most eligible filers. But if you own a lot of valuable property, this nickname could be consequential for you.

Chapter 7 Bankruptcy Exemptions in Tennessee

Chapter 7 bankruptcy is referred to as liquidation bankruptcy because the trustee assigned to a Chapter 7 filer’s case is empowered to sell any property that filer owns, provided that the property is classified as “non-exempt.” They then pass the profits of that sale along to the filer’s creditors as repayment of their debts. Tennessee law provides many exemptions that allow filers to protect their property from the risk of being sold by the trustee assigned to their case. Our Covington, TN bankruptcy lawyer team knows these exemptions inside and out and can help you protect your property from this risk. Most low-income filers don’t own non-exempt property, so they don’t risk anything by filing for bankruptcy. However, if you own unusually valuable property, you’ll need someone to look out for your interests during the bankruptcy process.

Legal Assistance Is Available

If you own a lot of valuable property, please connect with the experienced team at Darrell Castle & Associates, PLLC before attempting to file for Chapter 7 bankruptcy. Some filers with very, very straightforward finances and little property to their name are able to file for Chapter 7 bankruptcy relief successfully. However, if you own a lot of property, you’re going to want an experienced Covington, TC bankruptcy lawyer to guide you in order to better ensure that you remain the owner of your property once your bankruptcy process is complete.

How to Rebuild Your Credit After Bankruptcy

It probably doesn’t come as a surprise that bankruptcy will negatively affect your credit score. For at least the first couple of years after filing, you may have more trouble getting approved for loans and lines of credit. However, that doesn’t mean you will have a low credit score forever. If you put in the work, you can achieve a higher credit rating after bankruptcy sooner than you think. Here are a few tips to consider.

  • Make Your Payments on Time: One of the simplest ways to improve your credit score after bankruptcy is to pay all of your bills on time, including your mortgage, credit card bills and utilities. If you can prove that you’re responsible about paying your bills, more creditors may be willing to take a chance on you. If you have trouble remembering to make your payments on time every month, consider setting up automatic payments.
  • Don’t Be Afraid to Explain Your Circumstances: If special circumstances resulted in your bankruptcy, such as astronomical medical bills, some lenders may be more sympathetic. Don’t hesitate to write a letter to these credit agencies that explains your situation.
  • Apply for a Secured Credit Card: A secured credit card is a credit that allows you to deposit money into an account. Your credit limit will be based on the deposits you make. If you’re having difficulty getting approved for traditional credit cards, a bankruptcy lawyer in Covington, TN may suggest getting a secured credit card. If you make your payments on time every month, you will show other creditors that you’re responsible with your finances.
  • Monitor Your Credit: After your bankruptcy is complete, you’ll want to monitor your credit report periodically. Doing this will make sure your discharged accounts are reported correctly and help you catch errors and early signs of identity theft.
  • Get a Co-signer: If you need to finance an expensive item, such as a vehicle, a bankruptcy lawyer in Covington, TN may recommend getting a co-signer. This person should have a high credit score and good income. As long as you make timely payments on your loan, you should be able to raise your credit score over time.
  • Be Patient: After your bankruptcy process is complete, it might seem like it will take forever to get your credit score back up. The truth is that your credit score won’t be perfect until the bankruptcy falls off your record after seven to 10 years. However, you can improve your score sooner than that by making smart financial choices. Be patient and you will eventually have a good credit rating.