When you find yourself in debt, the process can be incredibly complex. Unfortunately, many in debt are quick to file for bankruptcy without taking the necessary steps before filing to protect themselves and their funds. As such, if you’re ready to file, understanding what to do to prepare for bankruptcy is critical to helping this process go as smoothly as possible. The following blog explores the steps you can take and why it’s imperative to connect with a Memphis, TN consumer bankruptcy lawyer.
What Can Expect During a Filing?
When you file for bankruptcy, it’s important to understand what to expect. Generally, one of the most beneficial things you can expect when filing is that you are granted an automatic stay. Essentially, this will prevent your creditors from continuing to contact you or take legal action over owed debts.
Another thing you can expect is being appointed a bankruptcy trustee. This person is responsible for overseeing your case and handling the funds you pay to creditors. Depending on what kind of bankruptcy you file, they are responsible for selling assets to pay back creditors in Chapter 7, while they are in charge of creating payments and distributing funds to creditors in Chapter 13.
How Can I Prepare for Bankruptcy?
One of the first steps you should take during the bankruptcy process is to examine your assets and determine what assets you would like to protect with exemptions. These essentially help protect certain qualified assets from being taken and used to satisfy creditors. For example, Tennessee does not have any exemptions to protect your bank accounts, but you may want to use a wildcard exemption. This protects up to $10,000 worth of assets of your choosing. However, there are other assets you may want to protect that do not have exemptions, so you should carefully consider this in preparation for your case.
Another step you should take is to notify creditors of the bankruptcy. This is important if you cannot stop payments before your filing. You’ll need to include the bankruptcy case number, where you filed, and the date when you filed. This is necessary if you need a pause for wage garnishments, foreclosures, or vehicle repossessions.
Should I Connect With an Attorney?
If you are considering filing for bankruptcy, you should contact an experienced bankruptcy attorney who can help you through this process. At the Arnold Law Firm, we understand how complicated filing can be, which is why we are hear to help you through every step of the process, from preparing to file to closing your case. When you’re ready to file, we’re here to help. Connect with the team at the Arnold Law Firm today to learn how we can guide you through this process.
