hundred dollar bills on top of gavelBankruptcy Lawyers Memphis, TN

If you are thinking about declaring bankruptcy, you may want to speak to bankruptcy lawyers in Memphis, TN. Bankruptcy is a complex process, so it is wise to work with someone knowledgeable and experienced. Here are some frequently asked questions and answers about bankruptcy.

Will Filing Bankruptcy Prevent a Lawsuit?

If you are far behind on your credit card bills and loans, you may worry about your creditors filing lawsuits against you. However, once you declare bankruptcy, the court will issue an automatic stay, which stops all collection activity, including lawsuits. 

How Does Bankruptcy Work?

There are two types of bankruptcy debtors can file: Chapter 7 and Chapter 13.

In Chapter 7 bankruptcy, your trustee will sell assets that can’t be protected with bankruptcy exemption and use the proceeds to pay off your debts. 

In Chapter 13 bankruptcy, you pay back all or some of your debts with a repayment plan. 

How Long Does Bankruptcy Take?

How long the process takes will depend on the type of bankruptcy you decide to file. Chapter 7 bankruptcy typically takes between four and six months to resolve while Chapter 13 bankruptcy takes between three and five years to finish.

Will My Retirement Account Be Safe?

Many people worry about their retirement accounts being wiped out in bankruptcy. However, most of these accounts are actually protected in bankruptcy. Keep in mind, though, if you take money out of your retirement account before filing bankruptcy, the trustee may use that money to repay your creditors.

Is a Bankruptcy Lawyer Worth the Money?

If you are thinking about filing for bankruptcy, you’re likely struggling financially and may wonder if you can afford bankruptcy lawyers in Memphis, TN. However, working with a qualified lawyer may help you avoid making mistakes during the process, which may help you save money.

Will My Credit Be Ruined Forever?

Another common fear people have about filing bankruptcy is what it will do to their credit rating. However, if you’re behind on your bills, your credit score has likely already taken a hit. While bankruptcy will lower your credit score initially, you can improve it over time. For instance, you can apply for a secured credit card. Once you make several timely payments, you may qualify for traditional credit cards.

Schedule a consultation with bankruptcy lawyers in Memphis, TN today.