By: Darrell Castle
What to consider when considering Bankruptcy
Are you at a moment in your life where a fresh financial start feels necessary? There are many factors to consider when determining if filing bankruptcy is the right solution for you. Take a look below at a few things to think about before filing.
Chapter 7 versus Chapter 13
Chapter 7 bankruptcy is when all the debtor’s dischargeable debts are discharged without him or her making payments towards that debt.
This type of bankruptcy can not be used more than once in eight years. Debts are generally discharged after this and are forgiven.
By contrast, Chapter 13 bankruptcy allows debtors to keep their assets, and finance their debt into payments to be repayed over a three to five year period. This repayment option allows the debtor to retain the majority of their assets. To file for Chapter 13, debtors must owe less than $307,675 in unsecured debt and less than $922,975 in secured debt.
The portion of debt to be repaid may be less than the full amount of debts in Chapter 13 filings.
Both options require credit counseling within 180 days before filing.
Process of filing
If you think that bankruptcy is the right choice to relieve your debt, contacting a lawyer is the next step. The complicated process of filing is made easier by an experienced attorney. Choosing a Memphis-based attorney with knowledge of the bankruptcy process will give you confidence that your case is handled with dignity and timeliness.
What happens after I file?
After your petition has been filed, you are given a ‘stay’ which means that creditors should stop contacting you. Any inquiries should go to your lawyer. From this point, you can start to rebuild credit, by properly repaying your plan or changing spending habits which will set you up for success in the future.
What can I do now, before filing?
If you think that bankruptcy may be in your future, the best thing you can do is to be prepared. Contact a bankruptcy attorney now, who can walk you through your options. Our Free consultation process puts your case in front of our legal team, who can then recommend the right course of action for you. To schedule an appointment, call our office at (901) 327-2100 or fill out the contact form on this page.
Our firm has received multiple Client Distinction Awards from Martindale-Hubbel for client satisfaction, so I promise you’re in good hands here.