If you’re considering filing bankruptcy in Memphis, TN, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

Qualifying for bankruptcy in Memphis, Tennessee, or anywhere in the United States, involves meeting certain eligibility criteria outlined in federal bankruptcy laws. Bankruptcy is a legal process that allows individuals or businesses overwhelmed by debt to seek relief by either discharging their debts or creating a manageable repayment plan. The most common types of bankruptcy for individuals are Chapter 7 and Chapter 13. To determine whether you are qualified for bankruptcy in Memphis, TN, it’s essential to understand the requirements and procedures for each chapter.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” is designed for individuals or businesses with limited income and significant unsecured debts, such as credit card debt or medical bills. To qualify for Chapter 7 bankruptcy in Memphis, TN, you must meet the following criteria:

1. Means Test: The first step in determining eligibility for Chapter 7 bankruptcy is the means test. This test evaluates your income and expenses to determine whether your income falls below the state’s median income for a household of your size. If your income is below this threshold, you generally qualify for Chapter 7. However, if your income is above the median, further analysis is needed.
2. Disposable Income: If your income is above the median, you will need to calculate your disposable income. This involves deducting certain allowable expenses from your income to determine whether you have enough disposable income to repay a significant portion of your debts through a Chapter 13 repayment plan. If your disposable income is low or negative, you may still qualify for Chapter 7.
3. Credit Counseling: Before filing for bankruptcy in Memphis or anywhere in the United States, you must complete a credit counseling course from an approved agency within 180 days before filing.
4. Previous Bankruptcies: If you have filed for Chapter 7 bankruptcy and received a discharge within the past eight years, you may not be eligible for another Chapter 7 discharge.
5. Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) Requirements: You must also comply with the provisions of the BAPCPA, which include income documentation and mandatory financial management education.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is often called “reorganization bankruptcy” and is designed for individuals with a regular income who want to repay their debts over time through a court-approved repayment plan. To qualify for Chapter 13 bankruptcy in Memphis, TN, you must meet these criteria:

1. Regular Income: You must have a consistent source of income to fund your proposed repayment plan. This can include wages, self-employment income, rental income, or other forms of income.
2. Debt Limits: There are specific limits on the amount of secured and unsecured debt you can have to qualify for Chapter 13 bankruptcy. It’s important to check for any updated limits.
3. Credit Counseling: Like in Chapter 7, you must complete a credit counseling course before filing for Chapter 13 bankruptcy.
4. Regular Payments: You must be able to make regular monthly payments under your proposed repayment plan, which typically lasts three to five years.
5. Good Faith: Your repayment plan must be proposed in good faith and satisfy the best interests of creditors and the disposable income test.
6. Priority Debts: Your plan must prioritize certain debts, such as tax debts and child support, and propose a reasonable repayment plan for them.
7. Filing Requirements: You must complete all necessary forms and adhere to the procedural requirements of Chapter 13 bankruptcy.

It’s crucial to consult with a qualified bankruptcy attorney in Memphis, TN, or a legal professional experienced in bankruptcy law to assess your specific financial situation and help you determine the appropriate chapter for your case. Bankruptcy laws can be complex and subject to change, so seeking legal advice is highly recommended to ensure that you meet all the eligibility requirements and navigate the process successfully.

RESOURCES:

Do You Need a Lawyer to File For Bankruptcy in Memphis, TN?

Filing for bankruptcy in Memphis, Tennessee, or anywhere in the United States is a legal process that can be complex and challenging to navigate on your own. While it is possible to file for bankruptcy without an attorney, it’s generally advisable to seek legal representation for several important reasons.

1. Understanding the Law: Bankruptcy laws are complex and subject to change. They vary depending on the type of bankruptcy you’re filing (Chapter 7, Chapter 13, or another chapter) and your individual circumstances. An experienced bankruptcy attorney in Memphis, TN, will have an in-depth understanding of the law and can provide valuable guidance on which type of bankruptcy is best suited to your situation.

2. Personalized Advice: Every individual’s financial situation is unique, and what works for one person may not be appropriate for another. A bankruptcy attorney can assess your specific circumstances, including your income, assets, debts, and goals, to provide personalized advice tailored to your needs.

3. Document Preparation: Filing for bankruptcy requires a significant amount of paperwork, including detailed financial disclosures, income statements, and asset inventories. An attorney can help you gather, complete, and organize all the necessary documents to ensure accuracy and compliance with court requirements.

4. Legal Expertise: Bankruptcy attorneys are skilled in negotiating with creditors, understanding exemptions, and using legal strategies to protect your assets and interests. They can help you make informed decisions throughout the bankruptcy process.

5. Avoiding Costly Mistakes: Filing for bankruptcy involves complex legal procedures and deadlines. Making mistakes or omissions on your bankruptcy paperwork can result in delays, dismissals, or even legal consequences. An attorney can help you avoid costly errors and ensure your case proceeds smoothly.

6. Asset Protection: Depending on the type of bankruptcy you file, certain assets may be at risk. An attorney can advise you on how to protect your property and assets to the fullest extent allowed by law.

7. Creditors and Collection Agencies: Once you file for bankruptcy, creditors and collection agencies are legally required to cease their collection efforts. An attorney can communicate with them on your behalf, preventing harassment and ensuring compliance with the law.

8. Court Representation: If you’re required to attend court hearings or meetings with creditors, having an attorney by your side can provide peace of mind and help ensure that you’re well-prepared for any questions or challenges that may arise.

9. Chapter 13 Plan: If you’re filing for Chapter 13 bankruptcy, an attorney can assist in creating a feasible repayment plan that meets the court’s approval and your financial capabilities.

10. Post-Bankruptcy Guidance: After your bankruptcy case is concluded, an attorney can provide guidance on rebuilding your credit, managing finances, and avoiding future financial pitfalls.

While it is possible to file for bankruptcy pro se (without an attorney), this approach is generally more suitable for individuals with straightforward cases and a deep understanding of bankruptcy law. Even in such cases, consulting with an attorney for at least an initial assessment is recommended to ensure that you fully understand the implications of bankruptcy and explore all available options.

Cost to File Chapter 7 Bankruptcy in Memphis, TN

The cost to file for Chapter 7 bankruptcy in Memphis, Tennessee, includes several fees and expenses, both associated with the bankruptcy court and your legal representation. It’s important to be aware of these costs to budget accordingly and understand the financial implications of filing for Chapter 7 bankruptcy.

1. Filing Fee: The primary cost associated with filing for Chapter 7 bankruptcy is the filing fee, which is set by the federal government. The filing fee for Chapter 7 bankruptcy is $358. However, it’s crucial to note that these fees can change over time, so it’s advisable to check the most recent fee schedule on the official website of the U.S. Courts or consult with a bankruptcy attorney for up-to-date information.

2. Credit Counseling and Debtor Education: Before and after filing for bankruptcy, you are required to complete credit counseling and debtor education courses from approved agencies. These courses typically cost around $60 to $125 each, though fees may vary depending on the service provider. You must complete these courses to comply with bankruptcy requirements.

3. Attorney Fees: While you have the option to file for Chapter 7 bankruptcy without an attorney (pro se), many individuals choose to hire an experienced bankruptcy attorney in Memphis, TN, to guide them through the process. Attorney fees vary based on factors such as the complexity of your case and the attorney’s experience. On average, Chapter 7 bankruptcy attorney fees can range from $1,210 to $2,780 or more. Some attorneys offer payment plans to make their services more accessible.

4. Credit Report and Credit Score Impact: While not a direct cost, it’s essential to consider the potential long-term impact on your credit report and credit score. Filing for Chapter 7 bankruptcy can significantly affect your creditworthiness, making it more challenging to obtain credit in the future and potentially leading to higher interest rates when you do qualify for loans or credit cards.

5. Miscellaneous Costs: There may be additional expenses associated with your bankruptcy case, such as notary fees, postage, photocopying, and transportation costs if you need to attend court hearings or meetings with creditors. While these costs are typically not significant, they can add up.

When considering the cost of Chapter 7 bankruptcy in Memphis, TN, it’s crucial to weigh these expenses against the potential benefits, such as the discharge of unsecured debts (credit card debt, medical bills, etc.) and the relief from creditor harassment. Additionally, a bankruptcy attorney can provide guidance on managing your finances during and after bankruptcy, which can help you make a more informed decision about the overall cost-effectiveness of filing for Chapter 7.

Cost to File Chapter 11 Bankruptcy in Memphis, TN

The cost to file for Chapter 11 bankruptcy in Memphis, Tennessee, can be substantial due to the complexity and nature of Chapter 11 cases, which are typically utilized by businesses, corporations, and individuals with high-value assets. Chapter 11 bankruptcy is a reorganization bankruptcy that allows the debtor to create a plan to repay creditors while retaining control of their assets and operations. Here are the main costs associated with filing for Chapter 11 bankruptcy:

1. Attorney Fees: Chapter 11 cases are highly complex, involving detailed financial analysis, negotiations with creditors, and the development of a reorganization plan. As a result, attorney fees for Chapter 11 bankruptcy cases are typically significant. The exact cost will depend on the complexity of your case, the size of your business or assets, and the rates charged by the attorney or law firm you hire. Attorney fees for Chapter 11 cases can range from tens of thousands to hundreds of thousands of dollars.
2. Filing Fee: The filing fee for a Chapter 11 bankruptcy case is set by the U.S. Bankruptcy Court and it can change over time, so it’s important to check the most recent fee schedule on the official website of the U.S. Courts.
3. U.S. Trustee Fees: In Chapter 11 cases, the U.S. Trustee’s Office may assess quarterly fees based on the debtor’s disbursements. These fees are designed to cover the administrative costs of overseeing the bankruptcy case. The amount of U.S. Trustee fees can vary widely depending on the debtor’s financial activity during the case.
4. Professional Fees: In complex Chapter 11 cases, debtors often hire financial advisors, accountants, and other professionals to assist with the reorganization process. These professionals charge fees for their services, and their fees can be substantial.
5. Creditors’ Committee Fees: In some cases, a committee of unsecured creditors may be appointed to represent the interests of the creditors. The debtor typically bears the cost of the creditors’ committee’s legal and professional fees.
6. Court Costs: Throughout the Chapter 11 process, there may be additional court costs, such as fees for filing motions, requesting court hearings, or conducting discovery.
7. Other Costs: Depending on the specific circumstances of your Chapter 11 case, there may be other costs associated with things like property appraisals, valuation experts, and necessary operational expenses to keep the business running during the reorganization process.
8. Plan Confirmation: If your Chapter 11 reorganization plan is successfully confirmed by the court, you will also be responsible for the ongoing costs associated with implementing the plan, including making payments to creditors as specified in the plan.

Given the substantial costs and complexities involved in Chapter 11 bankruptcy, it’s crucial to consult with experienced bankruptcy attorneys and financial advisors who can help you assess the feasibility of your case, develop a comprehensive plan, and manage the costs effectively. Additionally, exploring alternatives to Chapter 11, such as negotiation with creditors or asset sales, may be considered before proceeding with a Chapter 11 filing.

Cost to File Chapter 13 Bankruptcy in Memphis, TN

The cost to file for Chapter 13 bankruptcy in Memphis, Tennessee, includes various fees and expenses associated with the bankruptcy process. Chapter 13 bankruptcy is often referred to as “reorganization bankruptcy” and is designed for individuals with a regular income who want to create a repayment plan to address their debts. Here are the main costs associated with filing for Chapter 13 bankruptcy:

1. Filing Fee: The filing fee for Chapter 13 bankruptcy is $385. This fee may change over time, so it’s essential to check the most recent fee schedule on the official website of the U.S. Courts or consult with a bankruptcy attorney for up-to-date information.
2. Attorney Fees: While you have the option to file for Chapter 13 bankruptcy without an attorney (pro se), many individuals choose to hire a bankruptcy attorney in Memphis, TN, to help navigate the complex process. Attorney fees for Chapter 13 cases can vary based on factors such as the complexity of your case, the attorney’s experience, and the local market. On average, attorney fees for Chapter 13 bankruptcy can range from $2,720 to $4,630 or more. Some attorneys offer payment plans to make their services more accessible.
3. Credit Counseling and Debtor Education: Like Chapter 7 bankruptcy, you are required to complete credit counseling and debtor education courses from approved agencies before and after filing for Chapter 13 bankruptcy. These courses typically cost around $60 to $120 each.
4. Chapter 13 Plan Payments: One of the unique features of Chapter 13 bankruptcy is the development of a repayment plan. Under this plan, you commit to making regular payments to a Chapter 13 trustee, who then distributes the funds to your creditors over a specified period, typically three to five years. The amount of your plan payments will depend on your income, expenses, and the types of debts you have.
5. Plan Confirmation Hearing: There may be costs associated with attending a plan confirmation hearing, which is a court hearing where the bankruptcy court reviews and approves your proposed repayment plan.
6. Court Costs: Throughout the Chapter 13 process, there may be additional court costs, such as fees for filing motions or requesting court hearings.

When considering the cost of Chapter 13 bankruptcy in Memphis, TN, it’s essential to weigh these expenses against the benefits, such as the opportunity to restructure and repay your debts over time while retaining your assets. Chapter 13 can provide relief from creditor harassment and help you avoid foreclosure or repossession by providing a structured repayment plan.

Consulting with a bankruptcy attorney is highly recommended when considering Chapter 13 bankruptcy, as they can assess your specific financial situation, help you develop a feasible repayment plan, and guide you through the process to ensure the best possible outcome for your case. Additionally, an attorney can assist in managing the costs associated with your bankruptcy filing.

Reliable Bankruptcy Attorneys in Memphis, TN

Below is a list of reputable bankruptcy attorneys in Memphis, TN. They can help you with both personal and business bankruptcy information.

The Law Offices of Philip F. Counce
3333 Poplar Ave, Memphis, TN 38111, United States

Hurst Law Firm PA
2287 Union Ave, Memphis, TN 38104, United States

Darrell Castle & Associates, PLLC
5050 Poplar Ave Suite 1600, Memphis, TN 38157, United States

Law Office of John E. Dunlap
3340 Poplar Ave #321, Memphis, TN 38111, United States

The Sweeney Law Firm, P.C.
2795 Appling Rd Ste 112, Memphis, TN 38133, United States

Memphis, TN Zip Codes We Proudly Serve:

38002, 38016, 38018, 38028, 38103, 38104, 38105, 38106, 38107, 38108, 38109, 38111, 38112, 38114, 38115, 38116, 38117, 38118, 38119, 38120

---