If you are experiencing a level of debt that you cannot manage you may have to explore the possibility of declaring bankruptcy. Bankruptcy gives you the chance to eliminate debt or set up a reasonable payment plan with your creditors. An experienced bankruptcy attorney can stop harassing phone calls from creditors and stop wage garnishments.

Finding a bankruptcy lawyer to represent you may involve a little homework. You will want to hire an attorney that is a member of the Tennessee Bar Association and the American Bar Association. Filing for bankruptcy can be a very stressful event in your life. The good news is that you can have a fresh start and good credit again. Recent changes to the bankruptcy laws make it more difficult for middle class Americans to completely discharge debt. You will likely have to negotiate a repayment plan for a portion of your debt. You will have to attend a credit counseling session and pay increased fees. A good bankruptcy lawyer will help you navigate the system, help you decide whether Chapter 7 or Chapter 13 is right for you. Chapter 7 is a good choice for those who have no real assets to protect and it is known as “liquidation bankruptcy.” You would only be required to liquidate assets that are not exempt by law. You can keep your vehicle if it is worth less than $2,775 for example. For those items that are not exempt you may be forced to sell them and pay off a portion of your debt and the rest will be permanently discharged. Chapter 13 is commonly referred to as a “wage earner’s plan.” This allows you to pay off debt over 36-60 months according to a court approved repayment plan. This allows you to catch up on your mortgage and does not require you to sell your home to pay your creditors. It is important that your review your situation with a bankruptcy lawyer. They are best suited to determine the best route for your future. Most bankruptcies are the result of medical bills. As unfortunate as this is, is seems it is only going to get worse as the number of uninsured climb and healthcare costs keep rising. The stigma of bankruptcy is a thing of the past. So many people have found themselves in the same situation and understand that it is sometimes necessary to ask for a fresh start. Contact a bankruptcy attorney today and stop the stress of overwhelming debt so you can get back to living.

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