Bankruptcy Lawyer Hardeman County, TN
Bankruptcy is a scary-sounding word, but if you are feeling like you’re buried under a mountain of debt and it keeps getting worse, it might be time to meet with a bankruptcy lawyer in Hardeman County, TN like the good folks at Darrell Castle and Associates, PLLC. They’ll be glad to talk to you a little bit more about what a bankruptcy actually entails, so contact them for more information when you are ready.
As you most likely know all too well by now, debt does not go away. You may have made plans or purchases that seemed manageable at the time, but then spiraled out of control when late fees and other penalties were tacked on. Or, like other families in Tennessee and elsewhere, you may have insurmountable medical debt that you had no choice but to incur.
If you’re tired of getting further and further behind every month and sending every “unknown caller” to voicemail because most of them are debt collectors, you should know that you have choices. These aren’t easy choices. No one wants to admit that actually they need a bankruptcy court’s help to manage their finances, and there are financial and other consequences to claiming bankruptcy.
However, it is a legal and ethical option that may be available to you, and a good bankruptcy lawyer in Hardeman County, TN can help you walk through your options. There are a few different kinds of bankruptcies — which are known as “chapters” – that you may be eligible for. Your lawyer will explain these in much more detail when you meet, but you can certainly start thinking about your options.
Chapter 7 bankruptcy is what most people think of when they think of bankruptcy. When you file for Chapter 7 bankruptcy, you are telling the court that you cannot pay back your debts. If the court agrees, most of your unsecured debt is effectively erased. You can choose to reaffirm certain debts; if you want to keep your house, you can reaffirm your mortgage, for instance. Student loans, taxes, child support, and alimony are not eligible to be discharged in bankruptcy.
To be eligible to file for Chapter 7, you must earn less than the median income for Tennessee or the state in which you live. You can only file once every eight years, and the bankruptcy stays on your credit report for ten years.
If you earn too much for Chapter 7, or if the court is likely to decide that you have the ability to pay back your debt, Chapter 13 bankruptcy may be an option. With this type of bankruptcy, your debt will be restructured and you will make monthly payments for three to five years. The interest rate in a Chapter 13 repayment plan is often much less than what banks and other creditors expect, and a Chapter 13 bankruptcy puts a stop to foreclosure proceedings.
You can file for Chapter 13 bankruptcy if you are up to date on your taxes, your unsecured debt is less than $419,725, and your secured debt is less than $1,257,850. You are limited to filing once every two years, and it will stay on your credit report for seven years.
Other types of personal bankruptcy that you may read about but are relatively uncommon include Chapter 11, which is for individuals with very high amounts of both assets and debts, and Chapter 12, which has provisions for family farmers and fishermen to protect their working equipment.
If you’re reading this and thinking that you’d like to learn more about whether filing for bankruptcy would be an appropriate move, reach out to Darrell Castle and Associates, PLLC to talk to an experienced, compassionate bankruptcy lawyer in Hardeman County, TN.