Many Tennessee residents may have experienced an instance in which they waited too long to make a decision and an opportunity passed them by or was made worse. When it comes to finances, it is important that decisions are made in a timely manner in order to keep monetary issues from becoming overwhelming. Unfortunately, some individuals may think that avoiding bankruptcy is a better option than filing for Chapter 13, but by putting off considering the option, a situation could continue to decline.
Because there are different types of bankruptcy, it is important that individuals determine for which type they may qualify. Individuals who exceed a certain income threshold and do not qualify for Chapter 7 liquidation may find Chapter 13 bankruptcy reorganization to be a viable option. This type allows an individual to settle debt into a capped portion that must be repaid over a period of a few years by using a court-approved payment plan.
Some parties may be concerned that bankruptcy will hinder their chances at gaining loans in the future. However, individuals are still likely to be granted loans even after going through bankruptcy. Because a certain amount of time must pass before an individual could file for bankruptcy again, lenders typically believe that parties will be more likely to pay back loans since they will not be able to file for bankruptcy.
A Chapter 13 bankruptcy could be a helpful option. By gathering information and dispelling misconceptions about the process, Tennessee residents will likely see the benefits of achieving bankruptcy relief. This information may also allow them to make a more informed decision rather than avoiding a potentially beneficial course of action.
Source: uppermichiganssource.com, “The process of bankruptcy”, Aaron Boehm, May 31, 2015