Filing for Bankruptcy FAQ
A chapter 7 bankruptcy lawyer Memphis TN locals recommend from Darrell Castle and Associates, PLLP can advise you on how to proceed with this solution. If you are considering bankruptcy, you will likely have a number of questions about the benefits, drawbacks, and whether or not it is right for you. At Darrell Castle and Associates, PLLP we understand you may have struggled with debt for years and have now reached a point where you feel hopeless.
A chapter 7 bankruptcy lawyer in Memphis TN from our firm can meet with you to discuss your options and provide legal guidance about filing for bankruptcy. If you would like to get the answers you need, call us now at 901-327-2100 to schedule a complimentary case review.
What is bankruptcy, and will it help me to eliminate all of my debts?
Bankruptcy is a federal court process that allows helps individuals and businesses reduce or eliminate their debts and repay their creditors. With the assistance of a chapter 7 bankruptcy lawyer Memphis TN residents choose, some of your debts may be discharged. Other debts you will need to repay via a payment plan.
There are three types of bankruptcy: Chapter 7, Chapter 13, and Chapter 11. The later is available to businesses and the former two types are generally chosen by individuals.
The Bankruptcy Process
Though you can file for bankruptcy on your own, it is not advisable to do so. A Memphis TN chapter 7 bankruptcy lawyer from our firm can help you complete the entire process and make sure everything is done correctly. This increases the likelihood it will be approved the first time and you can put this difficult period behind you much sooner.
Once the court approves your request to file for bankruptcy, you will be protected from adverse actions and lawsuits. This is known as an “automatic stay” which means creditors cannot contact you about your debt owed, nor can they attempt to collect the debt. The court is the only authority who can lift the automatic stay.
A chapter 7 bankruptcy lawyer Memphis TN individuals trust can explain in greater detail, but in general, a Chapter 7 bankruptcy involves the liquidation of assets. Chapter 13 involves a restructuring of debt.
Chapter 7: The Property may be sold or liquidated in order to pay creditors.
Chapter 13: Individuals will keep most or all of their property, but are required to develop a plan to repay a portion of their debt within a time period (usually three-to-five years).
Bankruptcy can help you to get rid of your debt, but not every type. For example, unsecured credit card debts and hospital bills can be relieved. Child support, taxes, and alimony are usually not discharged in a bankruptcy. Unless you can prove that repayment of a student loan will cause you financial hardship, you will also be unlikely able to have your student loans discharged. It is possible for creditors to argue that your debt should not be discharged. In that scenario it will be up to the judge to make a ruling as to whether or not you will have to pay off the debt. Talk to a chapter 7 bankruptcy lawyer Memphis TN families turn to from our firm to find out more.
Pros and Cons of Filing for Bankruptcy
- You get emotional relief
- Relief from any creditors or bill collectors
- Stops a foreclosure or repossession of assets (Chapter 13)
- Gives you a fresh start
- Allows you to consolidate your debts (Chapter 13)
- You might lose your property
- Your credit score could be affected
- It takes time and money to file
Would You Like to Know More About Filing for Bankruptcy?
If you are ready to begin the bankruptcy filing process, call us at Darrell Castle and Associates PLLP at 901-327-2100 to speak with a skilled chapter 7 bankruptcy lawyer Memphis TN offers.