Find Bankruptcy Lawyers Near You in Memphis, TN

The total cost of filing Chapter 7 bankruptcy in Memphis includes the court filing fee of $338 and attorney fees that generally range from $1,200 to $2,500. For Chapter 13, the filing fee is $313, and attorney fees typically range from $3,000 to $5,000. Many Memphis bankruptcy lawyers offer free initial consultations and allow clients to pay Chapter 7 fees in installments before the case is filed. Chapter 13 attorney fees are often included in the repayment plan and paid over the life of the plan, which can make the process more affordable for those with regular income.

Please note that these figures are general estimates and may vary based on the complexity of your case, the specific lawyer you choose, and changes in court fees. This information is provided for educational purposes only and does not constitute legal advice. You should consult with a qualified bankruptcy lawyer in Memphis to obtain accurate cost information tailored to your situation.

Bankruptcy law in Memphis, Tennessee, provides a legal pathway for individuals and businesses overwhelmed by debt to obtain a fresh financial start. The most common forms of consumer bankruptcy are Chapter 7 and Chapter 13, while Chapter 11 is typically reserved for businesses or individuals with debt exceeding statutory limits. Chapter 7, often called liquidation bankruptcy, allows debtors to discharge most unsecured debts in exchange for non-exempt assets being sold by a trustee. This option is best suited for those with limited income and few assets, as it typically takes three to six months to complete. Chapter 13, or reorganization bankruptcy, requires debtors to propose a three-to-five-year repayment plan to creditors, making it ideal for individuals with regular income who want to keep their property or catch up on missed mortgage or car payments. Chapter 11, while available to individuals, is most commonly used by businesses to restructure debts and continue operations, though it is more complex and costly than consumer chapters. Choosing the correct chapter depends on your income, asset value, debt type, and long-term financial goals, which is why consulting with a qualified bankruptcy lawyer in Memphis is essential.

Tennessee has opted out of the federal bankruptcy exemption system, meaning debtors filing in Memphis must use state-specific exemptions to protect their property. Under Tennessee law, the homestead exemption allows you to protect up to $5,000 of equity in your primary residence, or up to $25,000 if you are married and filing jointly. This is significantly lower than the federal homestead exemption, which can be over $30,000, so many Memphis residents find they cannot protect substantial home equity. For vehicles, Tennessee allows a motor vehicle exemption of up to $4,000 of equity per debtor. The state also provides a wildcard exemption of up to $1,000 for any personal property not covered by other exemptions, plus an additional $500 for each dependent. Other important state exemptions include up to $7,500 in household furnishings and clothing, $3,500 in tools of the trade, and unlimited exemptions for certain retirement accounts like 401(k)s and IRAs. These exemptions are codified in Tennessee Code Annotated sections 26-2-101 through 26-2-305. Because Tennessee exemptions are relatively modest compared to federal alternatives, many Memphis residents may need to consider Chapter 13 if they have significant equity in a home or vehicle they wish to keep.

The means test is a critical calculation that determines whether you qualify for Chapter 7 bankruptcy in Memphis. This test compares your current monthly income over the six months before filing to the median income for a Tennessee household of the same size. As of 2025, the median annual income for a single-person household in Tennessee is approximately $55,000, for a two-person household about $70,000, for a three-person household about $82,000, and for a four-person household about $95,000. If your income is below the median, you automatically pass the means test and may file Chapter 7. If your income exceeds the median, you must complete a detailed calculation of your disposable income after deducting allowed expenses such as housing, food, transportation, and taxes. If your disposable income over five years is less than $8,000, you still qualify for Chapter 7. If it is between $8,000 and $13,500, you may qualify depending on the percentage of debt discharged. If your disposable income exceeds $13,500, you are presumed to have the ability to repay creditors and will likely be required to file Chapter 13 instead. A Memphis bankruptcy lawyer can help you accurately calculate these figures and determine your eligibility.

When you file for bankruptcy in Memphis, an automatic stay goes into effect immediately, stopping most collection actions against you. This means creditors must cease phone calls, letters, lawsuits, wage garnishments, and foreclosure proceedings. The automatic stay is one of the most powerful protections bankruptcy provides, giving you immediate breathing room. From filing to discharge, a Chapter 7 case typically takes about four to six months, while a Chapter 13 case lasts three to five years. Before you can receive a discharge, you must complete two mandatory courses: a pre-filing credit counseling session from an approved agency, and a post-filing debtor education course. The credit counseling must be completed within 180 days before filing, and the debtor education course must be completed after filing but before discharge. Both courses are available online or by phone for a fee of approximately $10 to $50 each. Failure to complete either course can result in your case being dismissed. During the process, you will attend a meeting of creditors, also called a 341 hearing, which is typically held at the bankruptcy court in Memphis. This meeting is usually brief and informal, with the trustee asking questions about your financial affairs.

The costs associated with filing bankruptcy in Memphis include court filing fees and attorney fees. The federal filing fee for Chapter 7 is $338, and for Chapter 13 it is $313. These fees are set by statute and must be paid to the court, though you may request to pay in installments if you cannot afford the full amount upfront. Attorney fees in Memphis vary widely depending on the complexity of your case. For a straightforward Chapter 7, you can expect to pay between $1,200 and $2,500 in total attorney fees. Chapter 13 cases are more complex and typically cost between $3,000 and $5,000, with the fee often included in the repayment plan and paid over time. Many lawyers offer free initial consultations and may allow you to pay Chapter 7 fees in installments before filing. For those with very low income, pro bono resources are available through organizations such as Legal Aid of East Tennessee and the Memphis Area Legal Services, which may provide free representation for qualifying individuals. Additionally, the United States Bankruptcy Court for the Western District of Tennessee offers a pro se clinic for those who cannot afford an attorney, though navigating bankruptcy without a lawyer is risky and not recommended.

Life after bankruptcy in Memphis involves both challenges and opportunities. A Chapter 7 discharge remains on your credit report for ten years from the filing date, while a Chapter 13 discharge stays for seven years. This can make obtaining new credit, renting an apartment, or even getting certain jobs more difficult in the short term. However, many people begin rebuilding their credit immediately after discharge. Strategies include obtaining a secured credit card with a small deposit, becoming an authorized user on a responsible family members account, and making all payments on time for any debts that survived bankruptcy. Not all debts are dischargeable in bankruptcy. Student loans are presumptively non-dischargeable unless you can prove undue hardship in an adversary proceeding, which is very difficult. Most tax debts from the last three years, child support, alimony, and debts for personal injury caused by drunk driving also survive bankruptcy. Additionally, debts incurred through fraud or willful injury may be excepted from discharge if a creditor objects. Despite these limitations, bankruptcy offers a powerful tool for eliminating credit card debt, medical bills, personal loans, and certain other unsecured obligations, allowing Memphis residents to move forward with a clean slate.