Bankruptcy: What Not to Do
Tips from a Memphis TN Bankruptcy Lawyer
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 avoiding 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 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 TN 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.
- Chapter 7 bankruptcy discharges all of your unsecured debt, as well as liquidate 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.
- 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.
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.
“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.”