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Memphis Chapter 7 Bankruptcy

Chapter 7 Bankruptcy only makes up about a third of all of Memphis bankruptcy filings, but it offers the best chance for a true fresh start. For most people, Chapter 7 bankruptcy frees them of all of their unsecured debts while allowing them to keep any property whose payments are current (like houses and cars). Every bankruptcy is different so get started with a free evaluation in the form below or give my office a call. I’ll get back to you promptly. Feel free to persue my site for more information, but no website can match individualized personal advice.

Unfortunately, Congress has been limited Chapter 7 bankruptcy to individuals and couples who pass the “means test.” The “means test” compares your income and available resources(e.g. a spouse’s income) to the state median income for your family size. If your income and resources amount to less than the state median income, you are eligible for Chapter 7 bankruptcy.

If your income is level with or above the state median income, you will need to document your expenses. If, after tabulating your adjusted gross income (per IRS standards) you still have a certain amount of “spare” income, you will not be allowed to file for Memphis Chapter 7 bankruptcy, though you may still be eligible for Chapter 13 bankruptcy.

The granting of Chapter 7 bankruptcy happens fairly quickly. You will receive a notice of discharge of your debts and will be able to sanction (in perpetuity) any creditors that violate the ruling. After you get your discharge, you need to begin rebuilding your credit.

What Kinds of Debts Aren't Dischargeable in a Chapter 7

Student loans are the most important debts that cannot typically be discharged when you file for Chapter 7 bankruptcy. In order to discharge a student loan debt, an extreme and extraordinary financial hardship must be proven (and, even then, it is easier to get the Federal Loan Center to work with you on this issue). Marital debt, alimony and any property divisions are not usually allowed to be discharged. Fraudulently obtained debts (e.g. charging luxury and unnecessary items to your credit cards in anticipation of filing bankruptcy) cannot be discharged. Income taxes under three years old will not be dischargeable.

Fees

My Memphis bankruptcy attorneys fees for a chapter 7 range from $950 (which includes the credit report fee and required education classes) to as high as $1800 for more complicated chapter 7 cases (these usually involve business entities). Adversary proceedings are billed by the hour and are handled just like a “regular” court case. The filing fee is $299 which can be paid to the court in installments after I file.

Order of Procedure

In Memphis, the order of procedure in Chapter 7 usually goes quickly. You will need to take a credit counseling class before you file and a debtor education course before your meeting of creditors. Your meeting of creditors usually takes place within six weeks and two months. This is where a trustee will look at your finances and talk to you about your bankruptcy and your assets. The trustee will determine if you have any assets that can be liquidated over your exemptions. Your discharge is granted several months after this meeting.

Chapter 7 Bankruptcy is truly the best option that is potentially available to you. As long as your property payments are current, you won’t have to worry about losing your home or your transportation and you’ll be granted freedom from all of that debt that has been weighing you down. Trying to do the math to figure out whether you are eligible, however, can be a nightmare. That’s where I come in. I will go over your finances with you and help you figure out if you pass the means test and then, together, we will figure out where to go from there.

I offer all of my clients an initial consultation that is 100% FREE. This means that sitting down with me to figure out your options won’t cost you a single cent. You only pay if you decide to go forward.

Contact me today for your free consultation!