When you are in debt and out of options, you may begin looking into bankruptcy. However, many are hesitant to pursue this option as they are unsure of whether or not they will need to go to court, which can be incredibly overwhelming. As such, if this reflects your circumstances, you’ll want to keep reading to learn more about this process and whether a court hearing is necessary to have your debt discharged. Additionally, you’ll discover the importance of working with a Memphis, TN consumer bankruptcy lawyer to help guide you through these difficult times.
What Are My Bankruptcy Options in Memphis?
If you are in debt and considering bankruptcy, it’s important to understand your legal options in these matters. Generally, you’ll find that you have two options as a consumer looking to file – Chapter 7 or Chapter 13.
Chapter 7 bankruptcy is a liquidation process in which your non-exempt assets are sold to repay your creditors. This is the most straightforward process, as it typically only takes 6 months to complete. However, you must qualify for this option, which generally entails having an income less than that of the average household of your size in Tennessee.
Chapter 13, on the other hand, is a repayment plan. This essentially reorganizes your payments into one debt, which you will then pay off in monthly installments. Typically, this can take three to five years, depending on your circumstances. At the end of the case, any remaining eligible debt will be discharged.
Do I Need to Go to Court At Any Point?
In many instances, choosing to file for bankruptcy results in very few formal court hearings. While most people who file will never have to appear before a judge in these matters, it is a possibility. The only official meeting all filers are required to attend is the 341(a) Meeting of Creditors, which is held in a courtroom. However, you’ll find that your creditors most likely won’t be in attendance, nor is this meeting held in front of a judge.
Outside of this hearing, you’ll find that you may be required to go to court should any issues in your case arise. However, it’s likely that these matters can be handled outside of court through your attorney. Additionally, if you file Chapter 13, you may have to go to court to have your repayment plan approved. However, if you have an attorney representing you during this process, they may be able to attend on your behalf.
While many are anxious about the prospect of appearing before a judge during bankruptcy, it is unlikely. Even if you must attend a hearing, you’ll find that it is not as stressful as you may imagine when you have legal representation there to assist you through this process. That is why it’s in your best interest to connect with an experienced attorney at the Arnold Law Firm. Our team understands how overwhelming bankruptcy can be, which is why we are committed to assisting you during these difficult times. Contact us today to learn how we can guide you through these matters.
