Memphis TN Bankruptcy Lawyer

Memphis TN Bankruptcy Lawyer

For most people living in Tennessee, filing for bankruptcy is really their last resort. They often hold back, trying to avoid the process, hoping they can figure out a way to get caught up with overwhelming debt, only to come to the realization that bankruptcy is their only option. The good news is that bankruptcy is often the best thing you can do for your financial wellbeing and while it may make it difficult to get a credit card, obtain a mortgage or vehicle loan, and lower your credit score, the truth is that being consistently late with your debt payments or not being able to pay at all does the same thing, often with even more of a negative impact. If you would like to find out how bankruptcy can help you get a fresh financial start, call Darrell Castle and Associates, PLLP to speak with a Memphis, TN bankruptcy lawyer.

How Do You Know It’s Time to File for Bankruptcy?

If you are struggling with debt, but are unsure if bankruptcy is the direction you should go in, the following questions may help answer that question.

Do Your Debts Far Exceed Your Income?

Make a list of all the debt you currently have including rent or mortgage, vehicle payments, credit cards, and personal loans. Add up how much debt you have. Now make a list of all the income you have coming in each month. For most people, that will likely only be their wages. If the debt you owe is significantly higher than your monthly income, bankruptcy may be a good option for your situation.

Is the Bank Threatening to Foreclose on Your Home or Repossess Your Vehicle?

If you are facing home foreclosure or vehicle repossession filing for bankruptcy will put a temporary hold on any legal action the bank or lending company is threatening you with. This not only gives you time to readjust your finances, you Memphis, TN bankruptcy attorney may also be able to work out a better financial deal for you, such as a cram down loan for your vehicle.

Have You Tried Negotiating Payment Options with Your Creditors?

If you are considering bankruptcy, have you first tried working out a better payment plan option with your creditors? Many creditors will not get paid in a bankruptcy action as many debts are discharged. Because of this, many creditors are sometimes willing to work with customers. If you have tried unsuccessfully to work with creditors, then it may be time to call a bankruptcy lawyer in Memphis, TN, and file for bankruptcy.

Bankruptcy: What Not to Do

Tips from a Memphis TN Bankruptcy Lawyer

A Memphis, TN bankruptcy lawyer knows that making the decision to file for bankruptcy is rarely an easy one. A bankruptcy attorney can guide you through the legal proceedings and file the necessary legal paperwork on your behalf. A bankruptcy lawyer in Memphis, TN from Darrell Castle and Associates, PLLP can also protect your best interests along the way. Your concerns and questions will be addressed promptly so that you have a full understanding of each step toward fulfilling the process. In addition to knowing what you will need to do, it’s also important that you know what not to do. We encourage you to contact us to find out more about how we may be of assistance to you during this difficult and stressful time. We provide a free consultation to those who are considering filing for bankruptcy.

Common Mistakes People Make When Filing for Bankruptcy

You want to make sure that everything goes as smoothly as possible when deciding to file for bankruptcy. A bankruptcy lawyer Memphis, TN residents turn to for help can sit down with you and offer more detailed guidance after reviewing the specifics of your situation. Everyone’s situation is unique, therefore the advice of a legal professional should be taken into account. At Darrell Castle and Associates, PLLP we have helped many of our fellow community members who faced great financial difficulty by handling their bankruptcy case.

You will want to make every effort to avoid the following mistakes that people commonly make when filing for bankruptcy. By avoiding these pitfalls, you can help ensure that you are able to put the bankruptcy proceedings behind you as soon as possible.

  • Do Not File a Lawsuit: Any money obtained from a lawsuit will become part of your bankruptcy claim. If you file a lawsuit while in the bankruptcy process or even before, you risk only receiving a portion of the lawsuit settlement if you receive any of it at all.
  • Avoid Using Your Credit Accounts: You don’t want to continue to accrue debt while filing for bankruptcy. It may look deceitful if you purchase expensive items or take sizable cash advances on your credit cards before you file for bankruptcy.
  • Putting Ancillary Money in the Bank: The only money reflected in your personal account should be from your wages. Running business transactions or keeping money for another person may appear deceptive to the court.
  • Do Not Transfer Any Money or Property: It may look fraudulent if you try to hide any of your assets from the bankruptcy court. Any transfer of your assets to someone else in an attempt to protect them may look alarming and be of concern to the court.
  • Avoid Paying Off a Particular Creditor: When you have debt with multiple creditors, paying off one is not good. It’s possible that the trustee will choose to regain the money paid by suing that creditor and dispersing the money equally to all of your debtors.

The best way to make sure you are following the bankruptcy process correctly is to consult an experienced bankruptcy attorney. A bankruptcy lawyer in Memphis, TN from our firm can help make sure that you take all the appropriate and required steps throughout the process.

If you are struggling with debt and feel as if you are running out of options, you may want to talk with a Memphis, TN bankruptcy lawyer. At Darrell Castle and Associates, PLLP, we have helped hundreds of clients with debt solutions, enabling them to start fresh and get back on track to financial security.

How Can a Memphis, TN Bankruptcy Lawyer Assist?

When a person is having a hard time paying their bills, there are certain issues that come up that indicate bankruptcy may be an option that will help solve the financial dilemma they find themselves in. These issues include:

  • Wage garnishment: This is where a creditor gets permission from the courts to garnish your paycheck in order to pay what you owe them. A creditor can garnish up to 25 percent of your pay. A skilled Memphis, Tennessee bankruptcy lawyer knows that by filing bankruptcy, a hold is put on the wage garnishment and your entire paycheck goes to you.
  • Vehicle repossession: When you take a loan out for a vehicle, that vehicle is collateral for the loan. This means if you fall behind, the bank or finance company can come and take possession of the vehicle. If you are unable to work out an agreement with the company, then filing for bankruptcy can stop the repossession and, depending on what type of bankruptcy you file, you may even be able to keep the vehicle under a new payment plan.
  • Foreclosure: Just like a car loan, the collateral for your mortgage is your home. If your mortgage company is threatening foreclosure or has already begun the foreclosure process, a Memphis, TN bankruptcy lawyer can help stop that foreclosure by preparing a Chapter 13 filing for you.

There are several different types of bankruptcies, but the majority of personal bankruptcy cases are either Chapter 7 or Chapter 13. Your bankruptcy lawyer can help you decide which type if the right one for your situation.

  1. Chapter 7 bankruptcy discharges all of your unsecured debt, as well as liquidates nonexempt assets. Your bankruptcy lawyer can help you determine if you have any assets that could be exempt. A Chapter 7 bankruptcy truly offers a fresh start because once the process is complete, you are truly debt-free.
  2. Chapter 13 bankruptcy also enables people to get out of debt, but instead of discharging debt, a repayment plan is established that will work within your budget. This plan allows you to get back on track while also paying down your debt.

Information On Trusts and Bankruptcy

When you are planning your estate, setting up a trust may be one of the first choices you make. A trust is a great way for you to pass on your property to those you love and ensure that it is taken care of in the event that anything happens to you. When you create your trust, you typically only need two other people involved: the trustee and the beneficiary. However, if you are filing for bankruptcy, how does this impact your trust, the trustee, and the beneficiary? Will all of your assets go to the bankruptcy to pay off any of your debt or will your beneficiary still get to keep anything? Our trusted Memphis, TN bankruptcy lawyer wants to go over this information with you so you know what you will get yourself into if you file for bankruptcy with a trust. 

What is the purpose of a trust?

The purpose of a trust is simple. When you want to pass your estate over to someone else, you can leave it in the hands of a trustee, a person who is responsible for getting your estate to your beneficiaries. While you are alive, you can even be the trust’s trustee. One of the greatest benefits that many people see in a trust is that it does not need to go through probate court. 

Trusts and Bankruptcy

When filing for Chapter 7 bankruptcy, also known as liquidation bankruptcy, your trustee will likely be going through your assets and determining if there are things they can liquidate in order to pay off your debt. When these items are liquidated and your debts are paid, whatever is left can go to the beneficiary of the trust. On the other hand, liquidating your assets may not pay entirely for your debt. 

What is a spendthrift provision?

There is a bankruptcy law known as a “spendthrift provision.” This means that with an irrevocable or revocable trust, creditors cannot take the proceeds of your assets and use the proceeds to pay off debts. Especially when an irrevocable trust has multiple beneficiaries, liquidating assets from that trust can become increasingly complicated. 

Because of the different types of trusts there are and the different ways bankruptcy may affect those trusts, it is important to get help from a bankruptcy lawyer in Memphis, Tennessee who can go over the details of bankruptcy and trusts. 

When You Need a Bankruptcy Lawyer Memphis, TN Clients Trust

If you would like to speak with a Memphis bankruptcy lawyer from Darrell Castle and Associates, PLLP, and learn more about your bankruptcy options, call our office today. Our firm has an A+ rating from the Better Business Bureau and a five-star rating from Avvo. Our firm has also been the recipient of Martindale-Hubbell’s Client Distinction Award. We would be happy to meet and discuss your legal options.

Contact a Memphis, TN bankruptcy lawyer from Darrell Castle and Associates, PLLP today to set an appointment for a free consultation.


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“I highly recommend this company. I was so vulnerable going into the whole process of filing BK. They made me feel like everything was going to be okay from the moment I walked in the door. The receptionist Amanda is friendly and thoughtful.”
Susan Miller
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