What to Expect when Expecting Bankruptcy

Looking for a bankruptcy attorney in Memphis, TN, may seem like a frightening proposition. Anyone considering filing for bankruptcy is already in a tough spot, and the stress alone is a lot to handle. It's even more difficult if you're unfamiliar with the bankruptcy process and don't know what to expect, but a good attorney and a good law firm can make all the difference. You may already be dealing with phone calls and harassment from creditors. The problems you face may include a foreclosure on your home or an eviction. Others issues that may weigh on your mind include having your wages garnished or your car being repossessed, or possible law suits. You may feel like a giant bundle of stress, but knowing what to expect and having an experienced attorney can help alleviate a lot of those worries.

Types of Bankruptcy

You may be wondering what the difference is between a Chapter 13 and a Chapter 7. A Chapter 13 is a "reorganization" bankruptcy, whereas a Chapter 7 is a "liquidation" bankruptcy. A Chapter 7 is typically recommended for someone that doesn't own any property that would be subject to liquidation. That includes things like cars and houses, which can be sold to pay off debt. If you only own property exempt from liquidation, Chapter 7 is likely best for you. You should consult an attorney and examine your particular circumstances to make that decision. If you do own property that is subject to liquidation, you'll likely be recommended a Chapter 13 instead. In most cases with a Chapter 13 you can keep your home and your car, but you will still be responsible for paying certain debts over time. This period is typically 3 to 5 years.

Foreclosure and Repossession

If you're expecting a foreclosure on your home, in most cases a bankruptcy can stop a foreclosure, so you will be able to keep living in your home. Additionally, in most instances a bankruptcy can stop repossession of your vehicle. That tends to be a huge fear just behind loss of a home. Everyone needs a way to get back and forth to work and run errands. For some people their vehicle is their work. You can rest assured that repossession is usually stopped or you can even get your car back from the lien holder with a Chapter 13. A Chapter 13 is usually recommended if you're looking to get your car back. The big two for most people are their home and their car, and a Chapter 13 can handle both, provided that the home or car has not already been sold.

Garnishment

What about a garnishment? Usually filing bankruptcy will stop garnishment of your paycheck. Obviously this can be a huge assistance, especially when trying to catch up on bills. If you have alimony or child support payments, you are still required to stay current even if you are filing for bankruptcy. Eliminating wage garnishments can make that much easier for you to manage. You should consult a lawyer for any questions you have regarding your domestic obligations. Each case is different, and it's best know all of the pertinent information and details regarding your specific situation.

Student Loans

If you're worried about student loan debt, a Chapter 13 might be applicable. You may be able to establish a repayment plan, which allows you pay your student loans off over time. In rare instances, the student loan debt could even be dischargeable. However, that is not very common. Regardless of the type of debt, it's always best to talk to an attorney directly.

When speaking with a bankruptcy attorney in Memphis, TN, be sure to go over every question that you have. Peace of mind can make the stress and complications of bankruptcy much more manageable.

Source : articlesbase.com