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Bankruptcy can put a stop to pending wage garnishment attempts

When you fall behind on your bills, the end result can be a lot of stress. Many people find it nearly impossible to catch up after even a few months of missed or late payments.

Your creditors will often do just about anything to get what they feel is owed to them, even if they have tacked on hundreds of dollars worth of fines, fees and penalties to your account. The end result can be a lot of stress over a financial situation that you no longer have control over.

Living on a shoestring budget might avert bankruptcy

Let's face it — life is full of curveballs. Many of those seem to occur in the financial sector of our lives, and sometimes we aren't as well-prepared as we should be.

If your economic situation is in free-fall, the following tips might help you avoid filing for bankruptcy:

Don’t put off bankruptcy relief if you need it

When it comes time to consider a bankruptcy, many people prolong their suffering simply because they "aren't ready" to commit to the process. The power of a bankruptcy is very strong, and may provide exactly the relief that you need, but the longer you put it off, the longer you must wait for it.

At the same time, you may actually hurt your future financial security by waiting to begin bankruptcy. Many people do not realize that bankruptcy restrictions often allow them to keep much of their property and income at the time of the bankruptcy, and may not affect a person's ability to receive income or gain property once the bankruptcy begins.

Chapter 13 bankruptcy and exempt property

If you qualify to file for debt reorganization under a Chapter 13 bankruptcy, you may enjoy a number of advantages that individuals who file for other forms of bankruptcy do not. Unlike Chapter 7, which focuses on liquidating assets to allow a debtor with little or no income to discharge his or her debts, Chapter 13 allows those who have income to repay debts at a more manageable pace, potentially discharging some portion of the debt.

One of the most attractive aspects of a Chapter 13 bankruptcy is that the procedure allows those who qualify to keep their personal property, as long as they can complete the repayment plan while abiding by its particular restrictions and timelines. If you suspect that Chapter 13 may resolve your financial difficulties, do not waste any time moving forward. The sooner you begin your own Chapter 13 procedure, the sooner you can get out of debt and back on track, all while maintaining ownership of your property.

Can you discharge tax debt through Chapter 7?

Tax debts can sideline anyone, even those who take great care with their finances. Not only does a significant tax debt pose serious threats to a person's financial world, the government is a formidable force with significant power and reach to recover what the debtor owes. If not handled properly, a person may find that he or she has a very serious financial problem without many clear paths out of hardship.

Fortunately, it is possible to discharge many tax debts through a Chapter 7 bankruptcy. If you or someone you know faces a serious tax burden and needs relief, you should consider the opportunities that Chapter 7 may offer you. While bankruptcy does entail some significant restrictions on your financial behavior, it may provide exactly the help you need to get back on track and out from under the thumb of the government.

3 benefits of Chapter 13 bankruptcy

You might think that the decision to choose Chapter 7 bankruptcy over Chapter 13 is obvious. After all, wouldn't it be better to resolve all of your debts quickly, simply by selling off some of your assets, as opposed to the long, drawn out debt payoff process associated with Chapter 13?

This is not necessarily the case. Particularly if you own a business, luxury items or a home that you don't want to risk selling off, Chapter 13 could be a great option to set up affordable, monthly payments that -- once you've made them on time over a three to five year period -- will serve to resolve any remaining debts covered by the bankruptcy.

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.

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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