Memphis Bankruptcy FAQs – Common Questions

Bankruptcy laws affect Memphis residents differently depending on income, assets, and debt type. Below are answers to the most common questions about filing bankruptcy in Memphis, Tennessee, including Chapter 7, Chapter 13, costs, timelines, and eligibility.

How Do I File Bankruptcy in Memphis, Tennessee?

To file bankruptcy in Memphis, you must prepare and submit required documents to the United States Bankruptcy Court for the Western District of Tennessee. Most individuals file either Chapter 7 or Chapter 13 bankruptcy depending on income and goals.

(Internal link: how to file bankruptcy in Memphis)

How Much Does It Cost to File Bankruptcy in Memphis?

The bankruptcy court filing fee is $338 for Chapter 7 and $313 for Chapter 13. Attorney fees vary based on case complexity.

(Internal link: bankruptcy cost in Memphis)

What Is the Difference Between Chapter 7 and Chapter 13 Bankruptcy?

Chapter 7 eliminates unsecured debt in about 3–4 months, while Chapter 13 uses a 3–5 year repayment plan to resolve debts and protect assets.

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Will Bankruptcy Stop Wage Garnishment in Memphis?

Yes. Filing bankruptcy immediately stops wage garnishment through an automatic stay issued by the bankruptcy court.

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Can Bankruptcy Stop Foreclosure in Memphis?

Yes. Bankruptcy can immediately stop foreclosure. Chapter 13 is commonly used to catch up on missed mortgage payments.

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Will I Lose My House If I File Bankruptcy?

Not necessarily. Many Memphis homeowners keep their homes, especially in Chapter 13 cases or when equity is protected by exemptions.

Can I Keep My Car If I File Bankruptcy?

In many cases, yes. Whether you keep your car depends on loan status, equity, and the type of bankruptcy filed.

How Long Does Bankruptcy Take in Memphis?

• Chapter 7: Approximately 3–4 months

• Chapter 13: 3–5 years

How Long Does Bankruptcy Stay on My Credit Report?

• Chapter 7: Up to 10 years

• Chapter 13: Up to 7 years

What Debts Are Eliminated in Bankruptcy?

Commonly discharged debts include:

• Credit cards

• Medical bills

• Personal loans

• Payday loans

What Debts Cannot Be Discharged?

Generally non-dischargeable debts include:

• Child support and alimony

• Most student loans

• Certain taxes

• Criminal fines

Do I Qualify for Chapter 7 Bankruptcy in Tennessee?

Qualification depends on income, household size, and allowable expenses under the Chapter 7 means test.

(Internal link: Tennessee bankruptcy income limits)

What Is the Chapter 7 Means Test?

The means test compares your income to the Tennessee median and evaluates disposable income after allowable expenses.

Can I File Bankruptcy Without a Lawyer?

Yes, but bankruptcy law is complex. Many Memphis filers choose legal representation to avoid mistakes and protect assets.

How Soon Can I File Bankruptcy Again?

Waiting periods depend on prior bankruptcy filings and the chapter previously filed.

Does Bankruptcy Stop Lawsuits and Collection Calls?

Yes. Filing bankruptcy immediately stops collection lawsuits and creditor phone calls.

Can Bankruptcy Eliminate Medical Debt?

Yes. Medical bills are unsecured debt and are typically discharged in bankruptcy.

Can Bankruptcy Eliminate Credit Card Debt?

Yes. Credit card debt is commonly discharged in Chapter 7 or partially paid in Chapter 13.

What Happens at the 341 Meeting of Creditors?

The 341 meeting is a brief hearing where the trustee asks questions about your bankruptcy paperwork.

Will My Employer Know I Filed Bankruptcy?

Employers are not notified unless wage garnishment is involved or court documents are sent to stop garnishment.

Does Bankruptcy Affect My Spouse?

A spouse’s liability depends on joint debts and whether they file bankruptcy.

What Happens After Bankruptcy Is Filed?

After filing:

• Creditors must stop collection

• A trustee reviews the case

• A discharge is issued if requirements are met

Which Bankruptcy Court Serves Memphis?

Memphis residents file bankruptcy in the United States Bankruptcy Court for the Western District of Tennessee, serving Shelby County.

Is Bankruptcy a Public Record?

Yes, bankruptcy filings are public records, but they are not commonly searched by employers or neighbors.

Is Bankruptcy the Right Choice for Me?

Bankruptcy is a personal financial decision based on debt, income, assets, and long-term goals.

^*For those who qualify under federal law.