Filing Bankruptcy Lawyer Memphis, TN
If you’re thinking about declaring bankruptcy, you may want to speak with a filing bankruptcy lawyer Memphis, TN residents rely on. Bankruptcy can help you wipe out most of your unsecured debts and get a fresh start. However, before you make the decision to file bankruptcy, it’s important to educate yourself about the process. Here are a few important things to know about bankruptcy.
Bankruptcy Doesn’t Eliminate All Debts
One of the biggest misconceptions about bankruptcy is that it will get rid of all your debts. The truth is that certain debts, like student loans, child support and taxes, aren’t dischargeable in bankruptcy. If you have these sorts of debts, you will still have to find a way to pay them back.
There Are Two Types of Bankruptcy
For individuals, there are two types of bankruptcy to choose from: Chapter 7 or Chapter 13. Chapter 7 bankruptcy is designed with lower-income individuals who may not have the money to repay their unsecured debts, like credit card debt and medical bills. Chapter 7 bankruptcy wipes out these debts completely.
Chapter 13, on the other hand, is for individuals who earn a consistent income and have enough money to pay back their debts through a repayment plan. This type of bankruptcy takes longer to complete, but allows you to keep all of your property.
Bankruptcy Can Take a Long Time to Complete
While it would be nice if bankruptcy was a quick fix to your debt problems, it doesn’t work that way. As a filing for bankruptcy lawyer in Memphis, TN can explain, bankruptcy often takes longer than most people think. For example, if you’re declaring Chapter 7 bankruptcy, you can expect the process to take between four and six months. If you decide to file Chapter 13 bankruptcy, it will take three to five years to complete.
You Can’t Rack Up New Debt Before Declaring Bankruptcy
Some people make the mistake of going on a spending spree before declaring bankruptcy. Don’t do this. Any debts you acquire within 90 days of filing for bankruptcy can’t be discharged. Therefore, you will still be responsible for paying back these new debts.
Bankruptcy Will Lower Your Credit Score
If you plan to file for bankruptcy, understand that your credit rating will take a hit initially. It may be more difficult for you to qualify for loans. However, you can rebuild your credit over time.
If you’re interested in declaring bankruptcy, schedule a consultation with a filing bankruptcy lawyer in Memphis, TN at Darrell Castle & Associates today.
Reasons To See a Bankruptcy Lawyer
Seeing a Memphis, TN filing bankruptcy lawyer that residents count on may be the solution to your major debt struggles. Facing a large amount of debt can put you in difficult financial struggles. When you do not know what to do when you are confronted with a massive debt problem, seeking professional help may be your next step. Thousands of people have benefited from consulting a bankruptcy lawyer like one at Darrell Castle & Associates so that they can gain clarity and understanding about their debt issues. A skilled lawyer will offer personalized legal help so that you won’t have to go through the trouble of trying to solve the problem on your own. Some of the top reasons to see a qualified bankruptcy lawyer include the following scenarios.
You need assistance with the requirements
Understanding the full legal requirements of bankruptcy can be a challenge. Bankruptcy cases are handled by the federal courts. There are many documents that you need to provide and forms that you must fill out properly as you go through your case. It can also be hard to understand how the qualifications are determined and whether you meet them. The legal jargon can be hard to understand for the average person, so you can trust a lawyer to explain everything to you in plain terms to make the process less confusing.
You need legal and financial advice
Every person’s situation is unique, so there is no blanket or general solution, especially when it comes to legal situations that involve financial matters. A lawyer will do a thorough analysis of your finances to see what issues you are facing and potential solutions that can be considered. If you have a house or other assets that you want to protect, a lawyer will explore the solutions to help you preserve your assets. It is helpful to go to a lawyer who has had a proven track record of successfully assisting clients who have been in your similar situation, so find a Memphis filing bankruptcy lawyer who has the specific case experience that you need. They will be able to give you more targeted and specific legal advice so that you can reach the right solution.
You want to explore debt relief options
There are many other options for debt relief besides bankruptcy. For some people, bankruptcy is the best option despite the drawbacks that it comes with. For others, options such as refinancing or payment plans are the most suitable and sensible options that can allow them to discharge their debt or better manage it. What is best for you is best determined by a lawyer who understands the financial options available and is capable of guiding you in the right direction.
You want to get through the bankruptcy process smoothly
It is advisable that you hire a bankruptcy lawyer if you have no idea where to start with debt relief. If you want to navigate the process as smoothly as possible, hiring a lawyer can optimize your chances of success. If you would like more information about bankruptcy legal services that can be of help to you, do not hesitate to speak with a trusted Memphis filing bankruptcy lawyer near you.
You can no longer handle interfacing debt collectors
Using a confident Memphis, TN filing bankruptcy lawyer in your local area will remove the weight of having to personally communicate with debt collectors. Once you hire a bankruptcy lawyer, they will handle all correspondence with debt collectors moving forward. When you are focused on a clear path to becoming debt-free, Darrell Castle & Associates understands the significance of also maintaining the right mental headspace in order to do so. With debt collectors consistently following up and checking in, it can become exponentially overbearing to deal with. Often collectors can feel like they are harassing you too aggressively, or even call in far more frequently than what feels necessary. An attorney will be happy to take this burden off of the client, so that ultimately the client can have the healthy mindset of working towards their financial goals and feel confident about the financial progress made.
You want to avoid filing bankruptcy mistakes that have real penalties
Even for those who are facing major debt but feel secure in handling the bankruptcy process on their own, many do not begin to consider the unfortunate consequences that come with filing bankruptcy incorrectly, missing a required step, or missing a deadline. In many scenarios, a misstep in filing bankruptcy can lead to your filing getting delayed or getting dismissed. Not only do you lose precious time in working towards financial stability, but also the self-esteem and perseverance required to keep moving forward in what can already be an overwhelming process. A qualified Memphis filing bankruptcy lawyer can easily take away that fretful possibility from you. It is important to be aware that taking on all of the responsibility in filing bankruptcy without the extensive knowledge can lead to real penalties. Filing bankruptcy should already be handled in a timely, professional manner, and we understand our clients have no time to lose when it comes to debt relief.
You want to save precious time in your own day-to-day
Both Chapter 7 and Chapter 13 bankruptcy require tedious time and dedication. While Darrell Castle & Associates will provide the knowledge and experience as previously mentioned, they will also be able to take the amount of time off of your hands it will take for this extensive process. Even if four to six months of Chapter 7 bankruptcy doesn’t initially feel like a long timeline to someone in debt, it unfortunately has a strong possibility of disrupting your day-to-day. We understand the strenuous time it takes to complete the paperwork, explore all avenues, and make sure all legal and financial information are correct. By working with a Memphis filing bankruptcy lawyer, you are able to have the bandwidth to focus on other important areas of your life as you walk through the process. Whether it’s focusing on your current job or income, or focusing on family and friends, you can enable yourself to prioritize other parts of your life while your attorney takes the lead on filing your bankruptcy. Creating more space to move your life forward and look to a debt-free future is essential.
Call us today for legal support in filing bankruptcy. We are here to help and guide you through this process.
Misunderstandings About Chapter 11 And Chapter 13 Bankruptcy
As our Memphis, TN filing bankruptcy lawyer understands, bankruptcy is a useful legal tool for individuals and businesses facing overwhelming debt, but misunderstandings can prevent people from taking the necessary steps to regain financial stability. While Chapters 11 and 13 both offer a way to restructure debt, there are common misconceptions about what each entails. Let’s address some of the key misunderstandings. When you work with us, we have 24/7 call answering and are here to help you.
- Chapter 11 Is Only for Large Corporations. While Chapter 11 bankruptcy is often associated with large companies, it is not limited to big businesses. Small business owners and individuals can also file for Chapter 11 to reorganize their debt. It can be a good option for those with complex financial situations or debts exceeding the limits for Chapter 13. The flexibility of Chapter 11 allows for more customized debt repayment plans, even for smaller entities or individuals with significant assets.
- Filing Chapter 13 Means You Will Lose Your Home. One of the biggest misconceptions about Chapter 13 is that you’ll automatically lose your home. In reality, Chapter 13 bankruptcy can be a valuable tool for protecting your home from foreclosure. This chapter allows individuals to set up a repayment plan that includes past-due mortgage payments, often allowing them to catch up and avoid losing their property. Chapter 13 is designed to help you keep assets, not lose them.
- You Can’t File Chapter 13 If You’re Self-Employed. Some people mistakenly believe that self-employed individuals or those running small businesses can’t file for Chapter 13. This is not true. Self-employed individuals who meet the income and debt requirements can file for Chapter 13 and reorganize their debts just like anyone else. It can provide more flexibility to handle both business and personal debts under one payment plan.
- You Don’t Need Bankruptcy If You Have a Steady Income. Having a steady income doesn’t mean you’re immune from financial distress. Many people with regular income still struggle with unmanageable debt, especially when unexpected events like medical emergencies, divorce, or a drop in business revenue arise. Both Chapters 11 and 13 can be helpful for those who earn a regular income but need a structured plan to repay debt over time without being overwhelmed by interest or penalties.
- Chapter 11 and Chapter 13 Will Ruin Your Credit Forever. Our filing bankruptcy lawyer in Memphis knows that it’s easy to assume that filing for bankruptcy will permanently ruin your credit, but this is not the case. While bankruptcy does impact your credit score, it doesn’t last forever. Chapter 13 generally stays on your credit report for seven years, and Chapter 11 can last up to ten. However, many people find they can start rebuilding their credit soon after filing.
- Filing Bankruptcy Is Always a Last Resort. Although bankruptcy is often viewed as a last resort, it doesn’t have to be. Filing for bankruptcy can provide relief much sooner than waiting until debt becomes unbearable. Both Chapters 11 and 13 offer ways to manage debt while protecting assets. Sometimes, taking action early can prevent further financial damage and lead to a quicker recovery.
At Darrell Castle & Associates, we believe in helping people take control of their financial future. If you’re facing overwhelming debt and are unsure which bankruptcy option is right for you, reach out to us. We’ve been practicing bankruptcy law for over 40 years. We’re here to help you get back on track and explore the options that work best for your situation. Speak with our filing bankruptcy lawyer in TN today.