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Filing for bankruptcy is a serious decision. It is a decision not to be made without fully considering the consequences of seeking federal financial relief. When you file for bankruptcy, the proceedings will be on your credit report for as many as 10 years. A bankruptcy on your credit report can prevent you from purchasing a home, a new car, and even landing a job. However, sometimes, you have no other option. A clean financial slate is what you need to move forward. If you decide to seek relief, you'll want to make sure fully how to file for bankruptcy in Memphis. Contact an Attorney Can you file without legal representation? Yes, you can. It is not advised, however. There are a number of deadlines that must be met and paperwork that must be filed correctly. Failing to miss a deadline for filing paperwork or missing a court date can derail your case. When hiring an attorney, make sure you find one who has experience with bankruptcy law. Hiring a family law attorney or a DUI attorney will not help you in this situation. You need an attorney with specific knowledge of federal bankruptcy laws. Also, depending on whether you're filing Chapter 7 or Chapter 13 (more about that later), you'll want to make sure your attorney is familiar with the type of bankruptcy you choose to file. You can find appropriate legal representation by searching online, requesting a referral from the state bar association, or by asking friends or family members for referrals. Make a List of All Creditors When you file for bankruptcy, you will need to provide the court with a list of all your creditors. Not only do you need to list creditors to whom have defaulted with, but also accounts that are in good standing. Failure to list a creditor could mean you do not have protection from paying the debt after the bankruptcy has been approved. It could also put you in jeopardy of violating the law. Some people choose to hide debts such as car payments or vacation home loans so they do not risk losing the property. If it is proven that you intentionally hid debts, not only will your bankruptcy be revoked, but you could face heavy fines and prison time. What Type of Bankruptcy Will You File? The most common types of bankruptcy are Chapter 7 and Chapter 13. There are other classifications, but the majority of people will file either 7 or 13. The biggest difference between these two kinds of bankruptcy plans is that one allows you to keep assets, but you'll pay a monthly payment toward your debt. Chapter 7 - Individuals often choose Chapter 7 when they do not have assets such as cars or home loans. Chapter 7 erases all eligible debt and gives a person the fresh start they need to rebuild their finances. Because Chapter 7 requires, most of the time, for the person to relinquish all property it is the best option for those seeking relief from credit card debt or medical bills. Chapter 13 - Filing for bankruptcy under Chapter 13 doesn't give you a clean slate, but it does allow you to pay back your debts at a reduced cost for a set number of years. It also allows the debtor, to keep most of their assets such as cars, homes, and even retirement or investment accounts. Usually, it takes about 3 - 5 years to pay back the debt under the court-approved plan. To learn more about how to file for bankruptcy in Memphis, contact a lawyer at your earliest convenience for legal advice. The Hurst Law Firm specializes in Bankruptcy and Wage Earner Memphis, Tennessee. How to file for bankruptcy Memphis. Visit our page on http://www.hurstlawfirm.com/#!news-and-publications/c17jc for more info!
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