Memphis bankruptcy lawyers | Darrell Castle & AssociatesWe continuously get questions in our office from clients and prospects and we find joy in providing the answers to those questions.

At this time, we would like to take five of the most common bankruptcy questions we’ve received lately and answer them for you!

Here we go…

 

Can qualifying IRS debt be discharged?

Yes, if it’s an ordinary tax debt and not a debt where someone had a business and withheld taxes from their employees’ income and didn’t pay it.  As long as you’ve filed your returns on time, the debt is dischargeable once it’s three years or older.  If you haven’t filed on time, then it’s not dischargeable.

If your IRS debt turns out to be non-dischargeable, it can still be included in a Chapter 13 bankruptcy. A Chapter 13 bankruptcy will combine all of your debts into one affordable payment while protecting you from creditor harassment.

 

If my paycheck is getting garnished, do I have to suffer?  Is there anything I can do?

Sure there is something you can do!  You don’t have to suffer.  You can file a bankruptcy to stop the garnishment – a Chapter 7 to discharge the debt or a Chapter 13 to organize it.

In Tennessee, a garnishment can take up to 25% of your net pay.  For someone struggling financially, that could be money you desperately need.

 

Does bankruptcy affect my retirement?

In some cases a bankruptcy can make your retirement much sweeter.  How? Because it can help you keep your 401K, IRA or whatever it may be.

If you have debts you can’t pay and are considering liquidating your retirement accounts, please seek expert advice first.  You can file a bankruptcy to keep those accounts.

 

My driver’s license has been revoked because of unpaid traffic tickets. I can’t afford to pay them. Is there anything I can do to get my license back?

You can file a Chapter 13 bankruptcy and that will help you get your license back.  This will allow you to pay your traffic tickets over a certain period of time rather than all at once.

 

My car was repossessed.  Do I have a grace period to get it back?

Yes.  Here in Tennessee, your grace period is the time it takes until the car is sold.  There’s not a set period, but it’s referred to as a “reasonable time,” which is usually 10 days.

You can get your car back through a Chapter 13 as long as it hasn’t been sold. Once it’s sold, it’s gone.

 

Have you been thinking about filing for bankruptcy but you’re terrified of what it’s going to do to your credit?  We have access to a great 14-week program that will teach you how to re-established and rebuild your credit the right way.  This is a free program with a $1,000 value.

Let us help you.

If you have questions or are considering bankruptcy, contact us online today or call us at (901) 327-2100 and we’ll discuss your situation with you, free of charge.