There are various situations that individuals may find themselves in that could lead them to looking for financial help. Some Tennessee residents may be saddled with mortgage payments on homes they cannot easily sell, or individuals may have considerable amount of other debt that is causing hardships. If parties feel that they may need assistance in handling their finances, Chapter 13 bankruptcy, or other bankruptcy options, may be able to help.
Under Chapter 13 bankruptcy, individuals utilize a court-approved repayment plan to handle their debt. This plan may cover the entirety of a person’s debt, or it may only cover certain debts. It may take anywhere from three to five years in order for debt to be paid off. If individuals have too much debt, however, they may not be able to qualify for Chapter 13.
In some situations, Chapter 7 bankruptcy may be better suited for the circumstances. This option involves liquidation and is the most common form of bankruptcy. Individuals who file for Chapter 7 liquidate their assets in order to pay back their debts. It typically takes four to six months to complete. It is also important to note that some assets may be protected from liquidation and may be kept by the bankruptcy filer.
Deciding to file for bankruptcy is a considerable step that many individuals feel the need to utilize. Rather than constantly feeling overwhelmed by debt, Tennessee residents may wish to determine whether Chapter 13, Chapter 7 or other debt management options may be right for them. Information on the qualifications and proceedings for such filings may prove beneficial in finally confronting unmanageable debt once and for all.
Source: Fox News, “Using personal bankruptcy to hit the reset button on distressed properties“, Robert Massi, Aug. 27, 2015