If you find yourself so far into debt and don't have any other options, filing Chapter 7 bankruptcy may be the best step to take. This type of bankruptcy was designed for people who need a fresh financial start and much-needed relief. At first, the whole process may seem too complicated, but it can be broken down into the following simple steps. Follow these guidelines if you are wondering how to file for bankruptcy in Memphis.
Decide If Bankruptcy is Your Best OptionFiling for bankruptcy is a big step that you shouldn't take without careful thought and planning. But if you are too far into debt and can't see your circumstances changing anytime soon, it is a great option to be able to fall back on. You don't have to be completely broke to file, but talk to an attorney to see if the debts you have would actually be discharged and if the whole process would be worth it to you. Debts like student loans, child support, and alimony will not be discharged.
Before you file, be aware that the courts will be able to take possession of your assets to meet the creditors' demands. Such assets may include your car, jewelry, and any other high-end, non-necessity items you have. Your home, retirement fund, and things you need for work cannot be seized.
Find Out If You QualifyTo see if you qualify, the courts will look at your income and determine if you really don't have the income to pay your debts. If you don't qualify for Chapter 7, you still could qualify for Chapter 13 debt consolidation.
Determine If You Need an AttorneyThe cost of hiring an attorney can vary greatly, but the cost can be more than worth it in the end, as a qualified attorney can help you get the most out of the process. You will pay a fee to the court whether you have an attorney or not, but having one can protect more of your assets and settle more of your debts.
Complete Credit Counseling and PaperworkThe Federal Government requires credit counseling for all debtors before filing, but the fee to do so may be waived if you are unable to pay.
You will need to file documents of your current income and expenses, all debts that will be included in the bankruptcy, and your assets and liabilities in addition to your petition to file.
You may also need to include executor contracts, leases, exempt assets, and any other documents the court orders or your attorney advises.
File a Petition with the CourtOnce all the documents are gathered, you will need to officially file the petition to the local court. Once it is filed, your creditors will be unable to garnish wages, begin lawsuits, or contact you about payments.
Attend the Meeting of the CreditorsFor this meeting that you are required to attend, you will need to bring along your pay stubs, bank statements, car titles, tax returns, property deeds, and copies of recorded mortgage documents.
Complete Post-Filing TasksAfter filing, you must complete a personal financial management instruction course and submit the certificate of completion to avoid getting your case dismissed. You will also be able to dispute any claims made against you that are untrue, such as a creditor claiming a higher amount owed than the documents you submitted show. A professional will be a big help during this process.
So if you've been wondering how to file for bankruptcy in Memphis, follow these steps and you will be back on track to financial freedom.
Source : articlesbase.com
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