Being a Memphis bankruptcy lawyer has a unique character in that Memphis has the highest bankruptcy filing rate in the nation. Bankruptcy in Memphis is also unique in that the number of Chapter 13 as opposed to Chapter 7 Bankruptcies is well over half. Nationally, Chapter 7 is filed over seventy percent of the time.
A Chapter 13 bankruptcy allows one to repay part of all of the debt owed. The most important feature is that if one is behind on a house or car for example, a Chapter 13 bankruptcy will allow making up the amount you are behind and keep the property. The plans generally last for five years and involve the debtor paying all of their disposable income either reasonable expense figures or IRS standard expenses to the US Trustee who will dispense the money per the Chapter 13 plan for between three to five years.
Figures vary, but it is commonly accepted that approximately one-third at best of Chapter 13 plans will end up being completed. So why are Chapter 13 plans so frequently used in Memphis? More generous explanations are that being a biblical town, trying to repay some of the debt is more congruent with Christian principles prevalent in the area. Less generous explanation are that being a less economically gifted area, Chapter 13 offers a way for lawyers to get paid without having their clients to come up with ready cash. This is opposed to a Chapter 7 plan where the lawyer's fee would technically be discharged as a debt if not paid before filing.
Another good explanation would be that Tennessee has a very restrictive homestead exemption of $4000 so in order to keep property valued above that amount debtors choose to make payments. It is also not clear that failure to complete Chapter 13 plans is always a bad thing. It could be attributable to an increase in income or positive change in circumstance causing the debtor to be able to repay the debts and no longer need bankruptcy court protection.
Chapter 13 will also impose on you the requirement of providing the Chapter 13 trustee with a yearly copy of your tax return and if your income goes up, the trustee can ask for higher payments. The one clear instance where a Chapter 13 is called for is where you are behind on property with substantial equity and you have a now steady monthly income which will allow you to cure the deficiency.
A Chapter 7 is the traditional bankruptcy. You don't keep stuff in excess of the homestead amount, but you get the immediate relief from debt without the necessity for payments. You can usually also keep a home or vehicle in which you are current with the payments.
I strongly recommend you to consider filing for a Chapter 7 if at all possible. Remember much of the consternation with the much talked about bankruptcy reforms was the means test, the central downside was that it required those who have means to file Chapter 13.
For more information about filing bankruptcy in Memphis, Tennessee contact Memphis Bankruptcy Lawyer David Sandy, a debt relief agency that helps people file for relief under the bankruptcy code.
Bankruptcy is not something that you do on the spur of the moment, but rather it should be a well thought out plan that you only implement when you have exhausted all other possibilities. While bankruptcy may provide a way out of your current financial situation, you need to consider and be aware that the ramifications of filing bankruptcy are going to haunt you for the next 7 to 10 years. Many people who file bankruptcy are doing so to make things better ?now? but they are not looking years down the road, and when they do and wish they had considered other options, it is then too late.
If you are on the very edge of filing bankruptcy and need a way out, there are multiple other options that may be available to you. If you feel like you're hopelessly buried in debt and you have very few assets, filing for bankruptcy may not be the answer to ending your financial problems. Though it sounds like an easy and attractive solution for one's financial problems, bankruptcy should be the last option any individual should resort to.
Throughout the process of filing for bankruptcy, it is a good idea to have a lawyer represent you through all formal bankruptcy proceedings. Unless you yourself are very familiar with bankruptcy law, especially the variations of the law within your state, it is more than just a good idea to have a bankruptcy lawyer represent you; it is almost a necessity so that you don't accidentally get yourself into worse trouble than you are right now. From start to finish, the process of filing for bankruptcy is much different than it has been in decades past, and a good bankruptcy attorney knows those pitfalls and can navigate around them.
Before taking the big step and filing for bankruptcy, you will need to do some reading, especially so that you can explain to your bankruptcy attorney the reason for considering bankruptcy. You may need to consider filing bankruptcy if your expenses are increasing because of divorce, job loss, or medical bills, while your income is decreasing because of the same reason. There are various good reasons for filing bankruptcy, but there are also many BAD reasons for filing bankruptcy, based on the ease with which one could do that in years past, but most of those loopholes have been closed, and it is not nearly as easy today to file a non-painful bankruptcy case.
If you have decided there is no alternative to filing bankruptcy, you may be asking yourself, "how do I find a good bankruptcy lawyer? If you have exhausted all other resources and still feel bankruptcy is your only viable option you can learn more about filing bankruptcy or buy do it yourself bankruptcy forms. If you're unemployed, on public assistance, have little or no money in a bank account, don't own an automobile, or rent or live with others, filing for bankruptcy may do little to improve your financial situation. The bankruptcy judge is going to want to see a plan of how you plan to change your current situation so that you are not back in the same position in another few years, so be sure that you discuss a financial plan with your bankruptcy lawyer.
Both David M. Sandy & Jon A are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
David M. Sandy has sinced written about articles on various topics from Real Estate, Bankruptcy Law. David M. Sandy is a and on his website. David M. Sandy's top article generates over 1000 views. to your Favourites.
Jon A has sinced written about articles on various topics from Home, Sports Car and Acid Reflux. Jon is a computer engineer who maintains web sites on a variety of topics based on his knowledge and experience. You can read more about bankruptcy and options at his web site at. Jon A's top article generates over 40500 views. to your Favourites.