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While most Americans carry some amount of debt, even large debt, it is generally manageable. However, due to unforeseen circumstances, such as exorbitant medical bills, a job loss, or a divorce, suddenly that debt skyrockets and there seems to be no way out. The bills accumulate and there is just no way to pay them. Despite your best efforts, the debt is mounting and you feel helpless. If this describes you, you may be a candidate for bankruptcy. Here is a brief guide on how to file for bankruptcy in Memphis. 1. Type of Bankruptcy There are two types of bankruptcy to consider. The first is Chapter 7. Chapter 7 bankruptcy eliminates unsecured debt within a few short months. Your home, retirement fund, and certain possessions are protected by exemption laws and cannot be seized. However, be prepared to part with any expensive property, such as jewelry or a flat screen television. The other form of bankruptcy is Chapter 13. This debt consolidation form of bankruptcy typically takes three to five years. A bankruptcy court trustee monitors your budget while you repay your debts. This type of bankruptcy is most often used by those who are behind on secured debt payments, such as a mortgage, and allows that person to catch up without having to give up any of their belongings. An attorney who specializes in bankruptcy can go over your financial situation and advise you if you qualify for bankruptcy and if so, which one would most suit your needs. 2. Credit Counseling Prior to filing for bankruptcy, you must complete mandatory credit counseling and obtain a certificate of completion. The counseling is approximately 90 minutes and can be done online or over the phone. 3. Filing Paperwork There are over 50 pages of forms to complete that include information such as your income, expenses, assets, and liabilities. Also, you will need a bankruptcy petition and your financial documents that substantiate your claims. An experienced bankruptcy attorney can help with the completion of these forms and accompanying documentation to ensure that nothing is being overlooked. Once the forms are completed, they can be filed at the Tennessee Western District Bankruptcy Court if you’ve lived in Shelby County for at least 91 days out of the past six months. If you have recently moved, you may have to file at the court in your previous county of residence. Once you have filed, you will be assigned a bankruptcy court trustee who helps process your case. 4. Creditors Meeting Provide your bankruptcy trustee with a copy of your most recent check stub and last year’s tax return at least a week prior to your scheduled creditors meeting, which will occur 21 to 40 days after your paperwork has been filed. At this meeting, the trustee will ask questions about the forms you completed to verify their accuracy. Creditors can also ask questions and object to exemptions you’ve claimed. They have until 30 days after the meeting to note any objections. A bankruptcy attorney is an invaluable resource in knowing how to respond to these objections. 5. Debt Management Course The final step is a mandatory debt management course. This must be completed within 45 days of the creditors meeting or your case may be dismissed. Once you have completed all of these steps, the case will proceed to resolve the motions and objections. A minimum of two months after the meeting of creditors, you will receive notice of your debts being discharged, and your creditors will also be notified of your bankruptcy filing. Now that you know how to file for bankruptcy in Memphis, don’t let your debt overwhelm you any longer. Set up a free consultation with a bankruptcy attorney. Your fresh start is a phone call away. ">
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