Bankruptcy Law Firm in Memphis
The goal of bankruptcy is to allow debtors a fresh start from the burden of debt. While declaring bankruptcy has numerous repercussions, it is sometimes the best way to avoid residential and commercial foreclosure in Memphis.
Bankruptcy law is extremely complex. While it is possible to file for bankruptcy without a lawyer, it is never advisable. You need the skilled legal guidance of a bankruptcy law firm in Memphis such as The Law Office of Ben G. Sissman.
Steps in filing bankruptcy in Tennessee
If a debtor chooses to file bankruptcy as a way of avoiding foreclosure, the debtor must qualify for either a Chapter 7 or Chapter 13 bankruptcy. Memphis banktruptcy law firms can help you guide you through either pocess.
Chapter 7 bankruptcy
A Chapter 7 bankruptcy, also known as liquidation, is supervised by the court. In this type of bankruptcy, a trustee assumes the assets of the debtor, reduces them to cash, and then makes payments to the creditors. To begin the process, the debtor files a bankruptcy petition and a statement of financial affairs with the bankruptcy court.
The debtor must also provide a list of all creditors that includes the claim amount and the type of claim, and his or her employment information and details regarding monthly income and living expenses. After the debtor files Chapter 7, the creditors cannot collect on any debts. Within 40 days of filing, the court calls a meeting of the creditors, or a 341 hearing, in which the creditors attempt to persuade the court that the debts should not be discharged. The court then decides which debts to discharge, and closes the case.
Chapter 13 bankruptcy
A Chapter 13 bankruptcy is designed for debtors who have a steady source of income. It allows the debtor to design a payment plan, and usually enables him or her to retain valuable assets such as property. The court and the creditors must approve the plan, which typically spans three to five years. If it is approved, the debtor can keep his or her assets and begin making monthly payments to a bankruptcy trustee.
Usually, the debtor does not appear in court or see the bankruptcy judge unless a creditor raises an objection during the case proceedings. Otherwise, the debtor is only required to appear at the 341 meeting to speak with the creditors.
Call 1-901-620-6347 for a Memphis bankruptcy law firm.
The Law Office of Ben G. Sissman represents clients from Memphis and surrounding counties north to the border: Shelby, Fayette, Tipton, Haywood, Lauderdale, Crockett, Dyer, Obion, Lake, and Gibson. For effective legal guidance, contact a Memphis bankruptcy attorney today.