Significant debt can place a strain on personal finances, credit scores, and everyday life. For those who find themselves in this position, filing for bankruptcy may offer relief. Hurst Law Firm, P.A. assists Memphis residents who wish to explore this solution, ensuring they understand the process and take steps aimed at restoring their financial stability.
When Bankruptcy Becomes an Option
Credit card balances, medical bills, and overdue loans can mount to a point where monthly payments become unmanageable. If paying these debts appears impossible, bankruptcy may be considered. This move can grant temporary relief by halting creditor calls and wage garnishments, giving filers an opportunity to reevaluate their finances. Determining eligibility involves reviewing income, debts, and assets to identify which chapter fits best.
Key Bankruptcy Chapters
Chapter 7 is often used by individuals with limited disposable income who cannot feasibly pay back a large portion of their debts. This process typically involves selling non-exempt assets to repay some creditors before discharging unsecured debts, such as medical bills or credit cards. By contrast, Chapter 13—sometimes referred to as a wage earner plan—helps reorganize debts into a more manageable schedule spread over three to five years. Those who need to catch up on mortgage or car loan payments often prefer this route since it allows them to retain essential property.
The Legal Process
Once a bankruptcy petition is filed, an automatic stay arises, pausing most collection actions. A court-appointed trustee assesses the filer’s finances, and a Meeting of Creditors takes place shortly thereafter. If no objections are raised, the court typically grants a discharge for qualified debts under Chapter 7, or approves a repayment plan under Chapter 13. While these proceedings may be unfamiliar, having knowledgeable guidance can provide clarity on the steps involved.
Support from Hurst Law Firm, P.A.
Hurst Law Firm, P.A. offers assistance to Memphis clients who wish to tackle excessive debt through bankruptcy. This includes verifying which chapter is suitable, organizing required paperwork, and ensuring that filers meet deadlines. By establishing a clear approach, individuals are given the chance to regain control over their finances. Although bankruptcy may have a lasting effect on credit, many find that the opportunity to reset outweighs the drawbacks. This renewed perspective often makes it easier to rebuild financial health and pursue future goals.
