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Are you considering filing for Chapter 7 bankruptcy in Memphis to help you relieve financial stress? Bankruptcy is an option many Americans choose to help them out of a bad financial situation, but it is important that you understand the pros and cons that come along with filing for federal financial relief. Before you file, read the following information and always consult with an experienced attorney. Time Required to File If you're living under a pile of debt, filing for bankruptcy takes relatively little time. In most cases, the entire process takes anywhere from 3-6 months. Once proceedings begin, collections on most accounts must stop. Some exceptions include spousal support, child support, federal loans like student loans, and tax debts. While the bankruptcy process is fairly quick, the ramifications of filing for bankruptcy can stay with you for as long as 10 years. Although your debt may be eliminated, you will still need to explain to future lenders why you have a bankruptcy on your record. Some people feel it is easier to explain a bankruptcy than multiple collection accounts. Unfortunately, for several years after filing for bankruptcy it may be harder to obtain a loan with a low-interest rate or get a loan at all. Be Prepared to Give Up Your Credit Cards For many people, it is credit card debt that got them into their financial messes. When you file for bankruptcy, all open credit accounts will be closed. After you file for bankruptcy, specifically Chapter 7, you may find it difficult to obtain a credit card for several years. Secured cards that are guaranteed by a deposit you make before being issued a card may be the only option you have. However, it is a good idea to abstain from using credit for several months or years after your bankruptcy. Operating on a cash-on-hand basis will help you avoid overextending yourself financially and finding yourself back under a mountain of debt. Bankruptcy Can Affect Your Ability to Buy a Home or Car If you already own a home or have a vehicle in your name, you may be able to keep these items under the terms of your bankruptcy. Typically, it is Chapter 13 bankruptcy that allows individuals to retain their homes or car. However, sometimes it is possible with Chapter 7 bankruptcy. Keep in mind, though, that once you file for federal financial relief, it may be extremely difficult to get a mortgage or car loan in the future. Subprime lenders do lend to high-risk borrowers, but there is never any guarantees. Therefore, if you have plans to purchase a home in the future or are in the process of buying when you file, you may want to consider another way to deal with your debts. Are There Other Ways to Resolve Your Debt? Before you take the leap into bankruptcy, ask yourself if this is your only option. How much debt do you really have? Although $10,000 in credit card debt or medical bills may seem like a lot, you may want to consider working out a repayment plan with your creditors. Bankruptcy should always be the last option and reserved for individuals who owe a large amount that will not be affected by regular payment plans. As always, everyone's situation is different. For this reason, if you're considering Chapter 7 bankruptcy in Memphis, you should speak with an attorney who is practiced and has years of experience in this area of the law. He or she will be able to advise you on what your options are and how they will affect your financial future. Hurst Law Firm, P.A. Hurst Law Firm in Memphis TN can help you when it comes to dealing with chapter 7 bankruptcy. Contact us today to get the help you need! Visit our page on http://www.hurstlawfirm.com to see our page today!
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