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Bankruptcy could be your answer to foreclosure

If you are falling behind on your mortgage payment for your Memphis home, you are not along. Americans all across the country have found themselves in a downward spiral of debt that includes foreclosure notice. While some lenders will make an effort to work with you to get back on track with your payments, many others will not. Instead, the lender will foreclose on the house and sell it at auction in an attempt to cover the original loan and any other costs associated with the home.

In most instances, the bank will not issue a foreclosure notice until the debtor is two to three months behind on payments. This means that if you have only missed one mortgage payment, you might have time to look into your debt relief options. If you have already explored possible solutions and cannot find one that suits your needs, it might be time to consider bankruptcy.

6 Things You Need To Do When Filing Bankruptcy

Despite what you might think, the process doesn't have to be overly difficult. Some common misconceptions are:

This makes you a failure. While deciding to file for bankruptcy is a serious step, it's based on your finances, not on your lack of morality or ethics. In fact, bankruptcy is a path forward to a fresh financial start and, ideally, making sound financial decisions.

You'll lose everything and can never buy a home. Actually, as soon as you file, you'll be on the way toward rebuilding your credit and laying the groundwork for the future. And you won't lose everything - bankruptcy is intended to help you start fresh, not punish you for your past mistakes.

I can do it myself. Some things might be easier to handle on your own, but bankruptcy isn't one of them. Work with an experienced bankruptcy attorney to make sure the process moves along smoothly and you aren't at risk from unscrupulous creditors.

What can you do if creditors won't stop calling your work?

It doesn't take long for a middle-class working adult to end up in financial trouble. An illness that had you miss a week of work, for example, or a car accident could be all it takes to leave you playing catch-up with everything. When you're barely making the minimum monthly payment on your credit cards, you can end up way over your head in no time.

Once you fall behind in payments, you can count on creditors to start calling. Sometimes, it will be your credit card company, while other times it's a private, third-party collection company that's trying to get you to pay. There's nothing more embarrassing than getting a phone call from a bill collector at work. If your company doesn't allow personal calls, even taking the call could get you in trouble. How can you put a stop to it?

What property can I keep in a Chapter 7 bankruptcy?

Unbearable debt is becoming a more and more common problem throughout the country, for people in every walk of life. The good news for those drowning in debt is that the law offers legal ways to discharge debt through bankruptcy, but the process is still unclear to many people.

A poor public opinion has hung around bankruptcy for many years, despite the fact that it is a perfectly legitimate procedure protected by the law. This bad reputation contributes to the many misconceptions that the public has about bankruptcy. Among other things, many people believe that bankruptcy means losing all of your property, but this is usually not how a bankruptcy actually plays out.

Are you being harassed by creditors? Bankruptcy can help.

It probably started small, with student loans and a low balance credit card. You finished school with substantial student loan debt and found yourself needing credit cards to pay your monthly expenses while looking for a job. Now, although you have a job, you are only making your minimum monthly payments and the balance keeps climbing. A large amount of your income is going straight to your debt, and you can't keep up with it. In this kind of situation, one accident or sudden illness could be enough to completely destroy your financial security and independence.

Medical debt can often become a major burden for uninsured or underinsured people in Tennessee. You may try to do the right thing by prioritizing certain debts, but now your creditors are calling you. In addition to emails and nasty letters sent warning you of potential lawsuits if you don't pay more, your family could be getting calls as well. Creditors may even try to contact you at work, which could cause issues with your employer (and your ability to pay for your debts). If you can't pay off your debt and are facing creditor harassment, bankruptcy may help.

5 things to consider if you are thinking of filing bankruptcy

When you are drowning in debt, there are a lot of issues that can plague your mind. You might wonder how you are going to make ends meet. You might be tired because creditors keep calling you or sending you collection notices in the mail. One option that you have to regain your peace of mind is to file for bankruptcy. There are multiple options that you can consider. Before you come to the point of thinking about the type of bankruptcy you want to file, you should think about how these five points will impact your life.

#1: Automatic stay

You can fight wage garnishment

After graduation, you were able to make regular payments on your student loans. Unfortunately, things took a turn and you had to change jobs. The 30 percent pay cut you took has made it difficult to keep up with your living expenses and your loan payments. You had to make a choice a between paying rent and paying on your student loans. Rent won out. Now, you are more than six months behind on your payments and the lender has started garnishing your wages.

Your circumstance is not uncommon. There are several situations that can result in wage garnishment. In addition to student loans, people that get behind on back tax payments, child support and personal loans are at risk of wage garnishment. Wage garnishment is a legal procedure that creditors can use to recoup outstanding loan payments. It is usually considered a fairly severe consequence, but it is possible to fight wage garnishment. An experienced attorney in the Memphis area can help you choose the best debt relief option for you.

Young professionals are often confused by bankruptcy myths

As a young professional, you may find yourself facing a variety of financial challenges. While you can dig yourself out of some problems, there may come a point when you have no option but to consider bankruptcy.

There are many challenges associated with bankruptcy, including the fact that you may not know exactly what this process entails. This is particularly true if you are a young professional who doesn't have much experience in the real world.

What is a manageable debt-to-income ratio?

Many people who file for bankruptcy do so because they can no longer manage their debt. With 80 percent of American households holding some form of debt, many people are "comfortable" with the concept of living in the red.

However, with the price of household goods inflating, you may feel like you are working harder than ever to pay your bills. Therefore, it is important to understand how debt payments fit into your monthly budget of income and expenses.

Modern Americans are more comfortable with personal debt

Americans have grown increasingly comfortable carrying personal debt. From high mortgages, car loans and credit card balances, many are walking a fine line between living a comfortable life and taking a financial tumble. One misstep, one serious illness, lost job or economic downturn and the debt-to-income ratio could fall, tragically, into the red.

Although good, hard working people do what they can to cushion themselves for a financial shortfall, that backup fund may not cover the rising cost of living expenses and accumulated debts.

Start By Getting Your Questions Answered

Contact us now to learn about what options are available to you in your particular financial situation. Call our law firm today at (901) 201-6012 or fill out the form to schedule a FREE CONFIDENTIAL CONSULTATION.

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