Because there are different types of debt relief, some Tennessee residents may not know which avenue may be best for them. In many cases, parties could potentially qualify for Chapter 7 or Chapter 13 bankruptcy in hopes of discharging and/or repaying their debts in a more manageable fashion. These methods are utilized by many parties every year across the country.
In another part of the country, it was recently reported that several individuals took advantage of this debt relief option. According to reports, approximately 45 individuals filed for Chapter 13 bankruptcy. This option allows for the creation of a court-approved repayment plan to work with creditors to lower balances and to allow parties three to five years to repay the remaining debt liabilities. This method is often most useful to individuals with a steady income.
In addition to those filings, it was reported that over 30 individuals filed for Chapter 7 bankruptcy. Though details on these filings were not given, it is likely that these individuals will work through the process of liquidation in order to attend to their outstanding debts. Though many assets may be liquidated in the process, there will likely be some exempt property that will not be affected by the filing.
If Tennessee residents are interested in this debt relief method, they may wish to find out whether they could potentially qualify. The details of their specific situations will likely impact whether they could file for Chapter 7 or Chapter 13 bankruptcy. In order to better understand these options and how they could affect their predicaments, interested parties may wish to consult with experienced attorneys.
Source: omaha.com, "The Record: Bankruptcies, April 19", April 18, 2016