There are many factors in a person's life that could result in that individual facing financial struggles. Going through a divorce, having a child or experiencing the death of a loved one are just a few sudden events that could come about and lead to financial difficulties. As a result, Tennessee residents may wish to consider their options for dealing with considerable debt, and filing for bankruptcy may be an avenue to pursue.
Several individuals in another state recently filed for bankruptcy after accumulating substantial debt. Reports stated that some of those individuals opted to file for Chapter 13 bankruptcy, which utilizes restructuring of debt and a court-approved repayment plan. Those individuals appeared to have liability and asset amounts that were not tremendously different, and therefore, they likely had to means to repay their debts over time after their restructuring.
Another individual was reported as having filed for Chapter 7 bankruptcy. Her case involved having more than $67,000 in liabilities with only approximately $15,000 in assets. As a result, liquidation bankruptcy likely suited her case better than Chapter 13. Other individuals also filed for Chapter 7 and Chapter 13, but specific information on their cases was not disclosed in the report.
No matter the circumstances that led to the accumulation of debt, many Tennessee residents may qualify for bankruptcy assistance. If individuals are uncertain whether Chapter 7 or Chapter 13 bankruptcy may best suit their cases, information on each process may prove useful. An experienced bankruptcy attorney would be able to provide specific insight and legal guidance into one's individual case.
Source: magnoliareporter.com, "South Arkansas bankruptcies by county for the week ended Tuesday, March 8, 2016", March 10, 2016