When Tennessee residents begin to face financial troubles, they may wonder how they came to be in such a situation. Unfortunately, these situations can come about more quickly and unexpectedly than an individual may think. Sudden job loss, injuries or other emergencies could lead to parties facing considerable debt in a short amount of time. Luckily, Chapter 7 bankruptcy may be an option to explore.
Individuals who are interested in getting their finances back on track could potentially benefit from liquidation bankruptcy. This type of bankruptcy results in property and assets being liquidated in order to pay back debts. This form of bankruptcy is considered the most common, but individuals who wish to follow this course must first qualify.
Some individuals may fear that they will be left with nothing if they choose to liquidate their assets. However, this idea is not always the case. Some individuals may be able to have up to approximately $12,000 in assets exempt from bankruptcy in order to keep important property. Each situation is unique, and, therefore, individuals will likely want to understand how their specific assets may come into play when filing for Chapter 7 bankruptcy.
Feeling overwhelmed due to debt issues can leave many Tennessee residents facing emotional, mental and even physical distress. Finding ways to handle considerable debt can lead to parties feeling less stress and potentially seeing improvements in their overall health. If parties believe bankruptcy could be an option for them, they may wish to gather more information on Chapter 7 bankruptcy and determine whether they may qualify.
Source: petoskeynews.com, “When should you consider bankruptcy?“, Matt Mikus, July 24, 2015