Ben Sissman, Attorney at Law
Free Consultation 901-730-4958
Toll Free 866-788-0394
Legal Services

Bankruptcy may be more beneficial than Tennessee residents know

Many individuals who are considering bankruptcy may be putting off filing because they are afraid that doing so means they will lose all of their possessions. Luckily, filing for bankruptcy likely will not leave Tennessee residents with nothing. Even though Chapter 7 bankruptcy includes liquidating assets, there are certain assets that may be considered exempt and remain the property of the owner. Under Chapter 13 bankruptcy, all assets are kept and a repayment plan is used.

It is important to understand, however, that bankruptcy does not necessarily mean that an individual will get to keep all assets and have all debts discharged. There are certain debts that cannot be discharged via bankruptcy. Student loan debt is one of the most common types of debt that is typically not forgiven through bankruptcy. There are also other debts that cannot be discharged, such as child support and taxes. 

Another worry that individuals may have is that their credit will be ruined if they file for bankruptcy. However, this is not necessarily the case. Though bankruptcy will affect credit scores for a time and individuals will likely pay higher interest rates after completing their bankruptcies, parties often have the ability to work toward effectively rebuilding their credit. Additionally, many credit scores that are considered below poor may even improve slightly after completing bankruptcy.

There are many misconceptions surrounding bankruptcy that may cause individuals to hesitate before considering it as a viable option. However, with the correct information, Tennessee residents may come to find that this option could be vastly beneficial for them. Interested parties may wish to determine whether moving forward with this debt relief avenue could be right for them.

Source: nerdwallet.com, "5 Bankruptcy Myths Dispelled", Sean Pyles, June 7, 2016

No Comments

Leave a comment
Comment Information

Office Location

Ben Sissman, Attorney at Law
44 North Second Street, Suite 403
Memphis, TN 38103

Phone: 901-730-4958
Memphis Law Office Map

Let's Start By Discussing Your Debt

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy