For many Tennessee residents, the idea of bankruptcy may be one that is considered a negative option for handling debt. However, Chapter 13 bankruptcy may be a viable route that could help some individuals with significant debt. Chapter 13 differs from other bankruptcy options in that it works to create a repayment plan for those parties who have outstanding balances, which may allow them to repay their debt over a period of years.
It was recently reported that a study conducted regarding the effects of Chapter 13 showed that many individuals who were approved for this type of bankruptcy had beneficial results. The report indicated that accepted filings could lead to parties gaining more annual income as well as a decrease in foreclosure rates. Allowed bankruptcy protection was also found to potentially have an effect on the mortality rate of filers.
Unfortunately, the benefits of an accepted protection plan are contrasted by the negative effects of those who have had requests dismissed. Individuals who file and are denied may see a decrease in their earning situation. Parties who do not qualify for bankruptcy may also see a higher mortality rate than individuals who are granted the bankruptcy protection. Because medical debt and stress can coincide with difficult financial situations, it is not wholly surprising that the mortality rate may be higher.
Individuals who are overwhelmed with debt may hope to find a plan that can help them see a more beneficial situation. Chapter 13 bankruptcy may be able to help many Tennessee residents who qualify find more stable financial ground. Furthermore, individuals who may not qualify do not need to feel hopeless as information on other debt management options may provide useful and applicable knowledge.
Source: mainstreet.com, “File for Bankruptcy and Get a Better Job, Make More Money and Live Longer“, Hal M. Bundrick, Oct. 23, 2014