When Tennessee residents are facing serious financial hardships, they may consider filing for debt relief. Bankruptcy can be a viable option for many individuals who qualify, but the procedure can be complicated and time consuming. Therefore, individuals interested in the process may wish to discuss their situation with knowledgeable legal professionals who can offer assistance.
Bankruptcy can offer various benefits, such as potentially halting debt collection efforts. As a result, individuals who are on the verge of having property repossessed may be able to at least temporarily stop that repossession by filing for bankruptcy. If creditors do not honor the terms, they could face serious consequences. Of course, there are certain exceptions as alimony and child support payments are not affected by bankruptcy and will likely still be required to be paid.
There are also different types of bankruptcy that could be filed. Chapter 7 tends to be the most common. This type results in an individual liquidating assets in order to cover debts. However, not everyone can qualify for Chapter 7, and if individuals make more than a certain amount of income, they may qualify for Chapter 13 bankruptcy, which would require a court-approved repayment plan.
Exploring bankruptcy would allow struggling individuals to determine whether this path could be one they wish to follow. Debt relief can potentially be achieved through different means depending on the circumstances. Tennessee residents may wish to consider discussing their particular cases with an experienced bankruptcy attorney who could provide insight and support on the journey to a fresh financial start.
Source: The Huffington Post, “Some Bankruptcy Legal Facts and Suggestions“, Brad Reid, Feb. 3, 2016