Bankruptcy Lawyer Tipton County, TN

FBankruptcy Lawyer Tipton County, TNiling for bankruptcy is a process that many people who are dealing with insurmountable debt try to avoid, as a bankruptcy lawyer in Tipton County, TN knows. When you can no longer pay off your debt, it can seem like there’s no way out. The good news is that you are not alone. A skilled bankruptcy lawyer can help you determine your best options. Although it has significant effects, bankruptcy can transform your life for the better. Talk to a seasoned lawyer who can help you understand your options and put you back on the track to financial freedom. 

Bankruptcy Lawyer in Tipton County, TN

The dedicated bankruptcy attorneys at Darrell Castle and Associates, PLLC are committed to providing clients with the best legal guidance. For years we have been helping clients get relief from debt. No matter what issues you are facing, we can help you explore and understand your legal options so that you can find the right solution. 

The Immediate Impact of Bankruptcy

Bankruptcy is one way that people can look to in order to rid themselves of debt. By filing for bankruptcy, you can eliminate many types of debt and get the chance to move forward in your life. However, it has both benefits and disadvantages. Whether the benefits outweigh the disadvantages largely depends on your particular situation, as a bankruptcy lawyer trusted by Tipton County, TN residents can explain. Because of its critical drawbacks though, many people try to avoid filing for bankruptcy if they can help it. 

Once you file for bankruptcy, these are a few of the things that can take effect:

  • It stops harassment from creditors. Creditors are no longer allowed to contact you through phone, email, or other means of communication to collect debt. 
  • Foreclosure is temporarily stopped. If you are worried about your property being seized, bankruptcy can provide you relief. When you file for bankruptcy, the foreclosure process is stopped for a few months. Chapter 13 bankruptcy filers do not have to worry about foreclosure as they can keep their property. 
  • Certain payments are put on hold. You do not have to make some payments towards unsecured debt once you have filed for bankruptcy. 

Is Bankruptcy Right For You?

The choice to file for bankruptcy is an important and highly personal decision that shouldn’t be rushed. If you are having trouble deciding what form of debt relief is best for you, talk to a bankruptcy lawyer in Tipton County, TN now.

Bankruptcy Lawyer Tipton Country, TN

Filing for bankruptcy can be a daunting task, and that is why you should talk to a bankruptcy lawyer in Tipton County, TN for advice. Filing isn’t easy and knowing if you even should is even harder. There are many reasons you might need to file but there are ways to go about debt without filing as well. A qualified lawyer from Darrel Castle and Associates, PLLC is committed to providing clients with legal guidance to help them through such a hard problem.

 Of course, there are many consequences that can come from filing for bankruptcy too. What are some of them? 

Will You Lose Your Home? 

It generally depends on what chapter you file under. If you file a Chapter 13 then no, you most likely get to keep your house. However, under Chapter 7 it really depends on how much equity you have in the house. 

When you start to file you start with a bankruptcy petition and you have the opportunity to exempt certain property. This can range from state to state, which is why a lawyer is so important. This means that normally you can protect a certain percentage of the equity in your house and other property. The federal maximum is normally at $25,150 for a single person but doubles it if your house is jointly owned with your spouse. 

If you have less equity than that then a court-appointed trustee probably won’t sell off your house as it won’t produce enough to pay off the debt. That doesn’t mean your lender can’t foreclose on the house though if you miss your payments. 

Typically, if you have more equity than you can exempt, then the trustee will likely sell your house and you’ll receive the exemption amount on the sale. There are other personal properties that can be sold which include, jewelry, antiques, appliances, furniture, books, musical instruments, and anything of significant value. Just like with anything though, there are exceptions that just depend on the state. 

The one thing that is protected is your pet. Unless your dog is worth thousands of dollars, the trustee isn’t going to sell your pet. 

What About Your Credit Score? 

Your credit score is going to take a hit. The exact numbers are going to vary but it really depends on your starting point. If you have a good credit score that is 700 and above then you can expect a drop of more than 200 points. A lower score you can expect anywhere from 130 to 150 points. No matter where you are on the list most people end up somewhere below 600 points. 

You can rebuild your credit though. A Chapter 7 bankruptcy will stay on your credit report for 10 years, while Chapter 13 stays on for 7 years. You can rebuild your credit during this time by managing your debt smartly. 

While the impact is big at the start, bankruptcy lessens over time because your debt is reduced or discharged. 

If you are thinking about filing for bankruptcy be sure to reach out to a bankruptcy lawyer in Tipton County, TN for advice. Here at Darrel Castle and Associates, PLLC we want to make sure you have all the information you need before making such a tough decision. If you have any questions don’t hesitate to reach out.