Feeling overwhelmed with debt is a common issue that many Tennessee residents face. Luckily, dealing with debt does not have to seem out of reach as there are relief options such as Chapter 7 and Chapter 13 bankruptcy that could assist qualifying individuals. Of course, there are certain stipulations that could play a role in which bankruptcy may be right for a particular person.
Chapter 7 is also known as liquidation bankruptcy. Personal assets are liquidated in order to apply the proceeds to outstanding debts. Liquidation does not have to seem like a frightening process, though, because certain assets are exempt from such proceedings in Tennessee. With this type of bankruptcy, there are some debts that could be entirely discharged.
Chapter 13 bankruptcy often works best for individuals with a steady, reliable income. This process involves the creation of a repayment plan to be approved by the Bankruptcy Court, thereby permitting individual filers to repay debts over the course of three to five years. However, this type of bankruptcy has a cap on the amount of debt allowed for both secured and unsecured debts.
Finding out more information on Chapter 7 and Chapter 13 bankruptcy options could help interested parties determine whether this is a debt relief route they may like to pursue. Tennessee residents who qualify could find themselves working toward a fresh financial start. Speaking with an experienced bankruptcy attorney could help individuals better understand their options and whether taking such a route could be beneficial to their particular set of circumstances. In doing so, filers may find that financial stability is just around the corner.
Source: mysanantonio.com, “Two Types of Bankruptcy“, June 15, 2016