The post What Are the Steps During Chapter 7 Bankruptcy in Memphis? appeared first on Arnold Law Firm.
]]>Chapter 7 bankruptcy is a way to erase debts. Generally, this process is short, as it calls for the liquidation of assets. As such, you may have to relinquish some assets to help manage your debt, like your vehicle or secondary property, but this is not always the case.
It’s important to understand that despite being one of the most common forms of bankruptcy, not everyone qualifies. To qualify for this Chapter, you must pass a means test. Essentially, this requires filers to prove their household income is less than the median for the state the filer resides in, which in this case, is Tennessee.
If you wish to file for bankruptcy, you must first complete credit counseling within 180 days of filing. Essentially, this is a mandated course in which you will learn more about bankruptcy and alternative methods to receive debt relief.
When you file for Chapter 7 bankruptcy, you may find that to check your eligibility to file for this option, you must compile your expenses for the past six months. This includes rent payments, grocery bills, medical expenses, and gas purchases. These are allowable expenses, and the income you have left after making these payments will go toward your bankruptcy filing. As such, it’s essential to be thorough and list all possible expenses to best protect yourself.
Next, the bankruptcy trustee assigned to your case will begin determining which assets are exempt, which includes selling property to pay creditors. Similarly, if you have secured debt, your property may be returned as collateral.
Before your case can end, you must take another credit counseling course. Upon completion, your case will be discharged, and the remainder of your eligible debts will be forgiven.
If you have decided that filing for bankruptcy is right for you, it’s imperative to connect with an experienced attorney to explore your legal options. Unfortunately, this can be an incredibly overwhelming and complex process. Failure to meet deadlines or include all assets can lead to issues during this process.
As such, the team at the Arnold Law Firm is ready to assist you. We understand that filing for bankruptcy can be a difficult decision, which is why we will do everything in our power to help you feel confident in your decision. Connect with our team today to learn how we can assist you through these challenging times.
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]]>The post Will Bankruptcy Discharge Alimony Obligations in Memphis? appeared first on Arnold Law Firm.
]]>When a couple divorces, there is a common misconception that alimony will automatically be awarded to the lower-earning spouse. However, this is far from the truth, as the spouse who wants financial support must request it in the divorce petition. If the other spouse contests or disagrees with the alimony request, the courts will determine whether or not it should be awarded and, if so, how much the recipient party will get.
As such, the following factors are taken into consideration by the courts when awarding spousal support:
When you file for bankruptcy, you receive an automatic stay from creditors. As such, those looking to collect on debts must cease collection efforts. This includes domestic support obligations like child support or alimony.
However, it’s necessary to understand that domestic support obligations, including alimony, are non-dischargeable under bankruptcy are non-dischargeable during bankruptcy. As such, you will still owe your spouse financial support, regardless of the fact you’ve filed for bankruptcy.
If you cannot make spousal support payments among the other debts you owe, it may be in your best interest to file for bankruptcy. This will allow you to catch up on payments you may have missed or pay off debts entirely, depending on which Chapter you file. For example, if you file for Chapter 13, your payments will include the alimony debt owed. Additionally, after filing, you may be able to apply for a modification, meaning your obligations could be lowered.
As you can see, there are many considerations you’ll need to make when you choose to file for bankruptcy. As such, it’s in your best interest to connect with an experienced attorney to discuss your circumstances in further detail. At the Arnold Law Firm, we understand how overwhelming a divorce can be. When you cannot pay your debts, it adds more stress to your life. That’s why our firm is dedicated to helping you navigate these complex times to help you receive a financial fresh start for your future. Connect with us today to learn more.
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]]>The post How Does Bankruptcy Affect Car Loans in Memphis? appeared first on Arnold Law Firm.
]]>When you file for bankruptcy, understanding what will happen to your car loan is critical. Generally, how this debt is handled will depend on which kind of bankruptcy you file for. It’s important to understand, first and foremost, that filing for bankruptcy grants an automatic stay. Essentially, this means that all creditors must cease collection efforts when you file.
If you file for Chapter 7, this means you’re opting to liquidate your assets to pay off outstanding debts in a shorter period. As such, your vehicle could be at risk for repossession to satisfy the car lender. In Tennessee, you may be able to protect your vehicle from your bankruptcy trustee by applying a bankruptcy exemption to your vehicle. Because the state does not have a motor vehicle exemption, you can consider using the $10,000 wildcard exemption toward your vehicle. However, you’ll need to protect all vehicle equity. You’ll also need to be on top of loan payments to satisfy your lender.
If you file for Chapter 13, your car debts will be factored into the repayment plan that’s right for you. This is because your debts are restructured, meaning you will have a three to five-year repayment plan you must adhere to. If you choose this option, it allows you to catch up on payments.
As you can see, there are many considerations you must make regarding your car loan when filing for bankruptcy. That’s why it’s in your best interest to connect with an experienced attorney. They can help examine your circumstances to determine what is best for your circumstances and walk you through the process to ensure you understand what you must do to receive a financial fresh start while protecting as much of your assets as possible.
If you are worried about what will happen to your vehicle when you file for bankruptcy, connecting with an experienced attorney as soon as possible is critical. At the Arnold Law Firm, we understand how overwhelming this process can be, which is why we are committed to doing everything possible to guide you through these complex times. Connect with us today learn how we can fight for you.
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]]>The post Can I Eliminate Memphis Tax Liens Through Bankruptcy? appeared first on Arnold Law Firm.
]]>When someone is in considerable debt and cannot afford to make payments to creditors, they may file for bankruptcy. Essentially, bankruptcy helps consumers by paying off a portion of their debts. This is done through a repayment plan or liquidation of assets. Once the process is complete, the remainder of the qualifying assets are discharged, meaning the debtor is no longer responsible for paying these debts.
It’s important to understand that some debts are non-dischargeable, meaning they cannot be forgiven during bankruptcy, and the debtor must continue to make payments to the creditor. However, by discharging other debts, non-dischargeable debts become significantly more manageable.
Tax liens are a security interest against a property. For example, a home mortgage is a lien against a residence. As such, if you don’t pay the mortgage, the creditor can seize and sell the property to receive the funds they are entitled to.
As such, when there is a tax lien against you, the creditor is not a traditional lender but the Internal Revenue Service (IRS). If you continually fail to pay taxes on time, you may be subject to a lien. As such, this informs your creditors that the government has a rightful legal claim against your property. Once you pay your debt, the IRS will release your lien within thirty days.
When you file for bankruptcy, you are granted an automatic stay. Essentially, this means that all creditors, including the IRS, must stop all collection efforts against you. It’s important to understand that federal tax liens are non-dischargeable, meaning you will still be legally required to pay these debts off after your bankruptcy case has closed. However, if you file for a Chapter 13 repayment plan, you can include this debt in your repayment plan to help make paying this debt significantly more manageable. It’s also important to understand that other forms of tax debts are dischargeable during bankruptcy.
If you have a tax lien against you or other tax debts have accumulated, connecting with an experienced lawyer is in your best interest. At the Arnold Law Firm, we understand how overwhelming debt can be. That’s why we’re dedicated to helping good people navigate difficult situations. Contact us today to learn how we can assist you through these matters.
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]]>The post What Is the Purpose of Credit Counseling for a Bankruptcy Case in Memphis? appeared first on Arnold Law Firm.
]]>In 2005, additional steps were implemented with the signing of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). This is the law that added the bankruptcy means test, making it more difficult for debtors to have their unsecured debts forgiven as they must file Chapter 13 depending on their income. Similarly, this act increased the time between filings.
Additionally, this act required those filing for bankruptcy to participate in a credit counseling course within 180 days before filing. This process is to determine whether or not it’s necessary for the filer to pursue bankruptcy or if a repayment plan with creditors would be more beneficial. You must complete the course and file the certification 60 days before the meeting of creditors.
While most courses are in person, they can also occur online or over the phone, so long as it’s with an approved counseling agency.
It’s important to understand that everyone must go through this process. However, there are exceptional circumstances under which a filer could be exempt from undergoing credit counseling. If there is an immediate need to file bankruptcy to avoid considerable harm, the courts could make an exception. Generally, however, if the filer has a mental or physical disability preventing them from participating with reasonable effort, the court could waive the requirement. Additionally, you’ll find that if there aren’t enough approved agencies in your area, you may not have to undergo this process.
Even if your income is below the median for your state and your debt is significant, meaning bankruptcy is the most logical option, you still must go through this process. However, you should understand that you are under no legal obligation to accept the debt repayment plan offered in your counseling course, but you must include it when filing for bankruptcy.
Unfortunately, bankruptcy can be incredibly overwhelming and complex if you are unsure where to start or how to proceed. As such, it’s in your best interest to connect with an experienced attorney to explore your circumstances and determine the best course of action for your needs. At the Arnold Law Firm, our dedicated bankruptcy team is here to help. Contact us today if you are considering bankruptcy to learn how we can guide you through this process.
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]]>The post Will Filing Bankruptcy Stop Creditors From Contacting Me in Memphis? appeared first on Arnold Law Firm.
]]>As a consumer, you have rights under the law. The Fair Debt Collections Practices Act (FDCPA) dictates how debt collectors can communicate with you to ensure your rights are protected. However, it’s important to note that the FDCPA only protects against third-party debt collectors. This means if the original creditor is contacting you, they are not covered under these laws. Many companies do sell their debts to collection agencies or hire collectors to work on their behalf, however.
As such, the following behaviors are prohibited under the FDCPA as they constitute creditor and collector harassment:
When you file for bankruptcy, you are granted an automatic stay. Essentially, this means an injunction takes effect, so creditors and debt collectors cannot contact you to pursue funds. Additionally, they must stop efforts against your property. As such, wage garnishment, foreclosures, collection lawsuits, repossessions, and phone calls must stop from the moment you file bankruptcy. The stay will last until your bankruptcy case has closed.
After filing, you may feel a reprieve from the constant communication from editors. However, if a collector files a motion with the court to modify the stay allowing them to continue contacting you or trying to garnish your wages, for example, you may be unsure how to proceed. That’s why connecting with an experienced attorney is in your best interest, as they can help fight against any unfair motions.
At the Arnold Law Firm, we understand how overwhelming it can be to find yourself in debt. That’s why our team is here to help you deal with unfair creditors and walk you through the bankruptcy process to help you get the relief you need from these matters. Contact us today to learn how we can guide you through these challenging times.
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]]>The post Does Bankruptcy Erase All My Debts in Memphis? appeared first on Arnold Law Firm.
]]>When filing for bankruptcy, many go into the process assuming all their debts will be entirely wiped. However, this is unfortunately not true. Generally, several kinds of debts are non-dischargeable, meaning you are still legally responsible for repaying them even if you file for bankruptcy. These are called non-dischargeable debts because they will not be forgiven once your bankruptcy case is complete.
Aside from non-dischargeable debts, certain obligations will be barred from discharge. These include fraudulent loans or incurring more than $800 on a credit card within 90 days of filing.
Finally, if you do not include a debt on your bankruptcy petition, you will be unable to have it discharged, even if it is a dischargeable debt. This is because you are responsible for ensuring that all debts you wish to have removed are included in your petition.
A non-dischargeable debt is anything that cannot be forgiven during a bankruptcy filing. These apply both to Chapter 7 and Chapter 13 filings.
The most common forms that cannot be forgiven are secured debts. These are essentially any items you purchase with the agreement that the creditor can seize the property if you do not repay the loan. Most commonly, these represent homes, cars, or other considerable purchases. When you file, you will have the option of continuing to make payments or forfeiting the property.
Similarly, if you owe child support and alimony payments to an ex-spouse, these will not be discharged. This is because the courts have determined that a domestic support obligation cannot be removed. If you have issues meeting payments, you must file a petition for a modification through the family court, but the judge may not grant it.
Finally, if you are ordered to pay criminal restitution or make personal injury payments for a drunk driving accident, these are also not dischargeable during bankruptcy, as you are still responsible for ensuring your financial repercussions are met.
Because navigating bankruptcy can be incredibly complex, it’s in your best interest to enlist the assistance of an experienced attorney from the Arnold Law Firm. Unfortunately, if you forget to include a debt or make a mistake during the process, it can jeopardize whether or not your case will proceed. However, having legal representation can help you through this process to make your filing as smooth as possible. Contact our team today to discuss your circumstances.
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]]>The post How Do Bankruptcy Exemptions Work in Memphis Tennessee? appeared first on Arnold Law Firm.
]]>If concerned about the bankruptcy court seizing your assets to pay creditors, it’s necessary to understand how bankruptcy exemptions can benefit you. Essentially, this allows you to shield assets up to a pre-determined value from creditors. As such, the bankruptcy court cannot liquidate these assets to repay creditors during Chapter 7 bankruptcy. Exemptions are offered to help ensure that those going through bankruptcy have funds to help rebuild their financial standing following their bankruptcy case.
There are both federal and state exemptions. However, the states have the sovereignty to choose how they want filers to proceed with their case. For example, New York allows filers to choose between state and federal exemptions. However, Tennessee does not allow filers to choose and only offers state exemptions.
For example, Tennesee offers a homestead exemption, which can protect your home up to $5,000. Though the state doesn’t have a motor vehicle exemption, it does have a wildcard exemption. As such, this allows you to protect any personal property up to $10,000 in value.
You should also understand that certain public benefits are exempt up to their full value. This includes things like Social Security, workers’ compensation, and alimony payments will not be used to repay creditors.
Unfortunately, filing for bankruptcy is often a complex process, filled with a considerable amount of paperwork that must be filed correctly and on time. As such, it can be hard to handle these complexities while maintaining your daily responsibilities.
When you’re ready to file for bankruptcy, ensuring you connect with an experienced bankruptcy attorney is crucial. Unfortunately, many underestimate how important this is and try to navigate bankruptcy on their own. Not only can it be overwhelming, but you can make errors that impact the outcome of your case. For example, you may find that failing to report certain debts will exclude them from your case, and leaving out assets can result in the dismissal of your case before it’s completed.
When considering bankruptcy, finding legal representation to guide you through this process is critical. At the Arnold Law Firm, we understand how complex these matters can be. That’s why our team is ready to assist you through this process. Contact us today to learn how we can help you.
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]]>The post Can I Get a Credit Card After I File for Bankruptcy in Memphis? appeared first on Arnold Law Firm.
]]>When you file for bankruptcy, your credit will automatically be impacted. Essentially, this means it will lower your credit score, indicating to financial institutions and lenders that you may not be reliable. This can make it harder for you to secure loans, as bankruptcy and low credit scores indicate you are a risk to loan to.
Filing for bankruptcy will also stay on your credit for a considerable amount of time. If you file Chapter 7 bankruptcy, it will remain on your score for ten years, while Chapter 13 will last for seven. Until this time has passed and the reporting agencies remove this information from your report, potential creditors will see this information, which can impact whether or not they lend to you.
Unfortunately, the higher your credit is, the bigger the hit your score will take. If you have an above-average score, over 780, you can lose between 200 and 240 points. If your score is lower, in the 680 range, you’ll lose between 130 and 150 points. Surprisingly, if your score is very low before filing, in the 300 to 400 range, you may experience an increase of up to 50 points by filing.
Though it may not seem possible, it’s recommended to open a new line of credit after you file for bankruptcy. Doing so will help rebuild your credit to soften the impacts of bankruptcy. Generally, you’ll need to look for credit card companies that lend to those with damaged credit. However, it’s essential to understand that you will likely incur higher interest rates as a risky applicant.
You should also understand that utilizing prequalification can help protect your credit further as you apply for cards. Every time you submit a card application, the company will look at your credit score, which can reduce your score by a few points. However, using the prequalification tools will help you get an idea of whether or not your application will be approved to reduce how often you must endure a hard inquiry.
As you can see, there are many considerations you must make during this process. As such, it’s in your best interest to connect with an experienced attorney to guide you through the legal complexities of filing for bankruptcy. At the Arnold Law Firm, we know this process can be overwhelming, which is why we’re with you every step of the way. Contact us today to learn how we can help you through these matters.
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]]>The post What Happens to My Utility Bills After I File for Bankruptcy in Memphis? appeared first on Arnold Law Firm.
]]>If you are filing for bankruptcy, you may wonder whether or not you can include any overdue, unpaid utility bills in the filing. In general, yes, you can absolutely include any outstanding utility or cable bills in your bankruptcy filing.
However, if this is the case, you may find that your utility provider may require a deposit that increases the price of your services to continue providing utilities. This is permissible under the law, as cable and utility providers cannot refuse services to someone simply because they filed for bankruptcy, but they can refuse service if you do not provide a new deposit.
It’s also important to note that if you are behind and the utility company has threatened to terminate your services, filing for bankruptcy will provide you with an automatic stay. This prevents the utility company from taking action against you while your bankruptcy case is ongoing. As a result, they cannot turn off your utilities on you. This also stops all other collection methods against you.
When you file for bankruptcy in Tennessee, you must choose what Chapter you file. You may qualify for Chapter 13 or Chapter 7. To file for Chapter 7, you must complete a means test, which means you meet the income requirement for this option. Chapter 7 is a much faster process, as it liquidates your assets, taking around six months. Those who don’t qualify for Chapter 7 can opt for Chapter 13, which is when you will make a repayment plan that lasts three to five years. This helps prevent losing assets.
It’s in your best interest to connect with an experienced attorney to guide you through this process, as filing for bankruptcy can be a complex legal matter. If you’re unsure which option is best for you, your attorney can examine your circumstances to help you pick the best choice. Additionally, they can help you file the necessary paperwork to ensure there are no errors that could prolong this process.
When you’re ready to file, the Arnold Law Firm can help. Our dedicated legal team understands how overwhelming this process can be, so we will do everything to help you navigate these complex times. Contact us today to discuss the details of your case with a member of our team.
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