Different options are available through the legal system to help individuals eliminate debt and enjoy a fresh financial start.
Bankruptcy numbers for another Tennessee county west of Bradley County remained the same for the first quarter of 2014 as for the first three months of 2013. Overall, 3,036 bankruptcies were filed in U.S. Bankruptcy Court for the Western District of Tennessee in first quarter of 2014 compared to the nearly identical number of 3,031 for the same period during 2013.
Of those filings, 2,253 were Chapter 13 filings which accounted for 74.2 percent of all filings for the first quarter of 2014. The total number of Chapter 7 filings for the quarter was 774 which accounted for 25 percent of the total filings for the quarter. As one woman active in the community noted, changes in the struggling economy and medical bills may sometimes lead individuals to seek bankruptcy as an option for debt relief.
The struggling economy has created some unexpected life changes and financial challenges for many individuals. Many face unemployment, unpaid bills and medical expenses that make financial stress considerable. Individual bankruptcy offers two primary options. Filing for Chapter 7 bankruptcy allows a filing party to liquidate non-exempt assets to repay creditors. A Chapter 13 bankruptcy allows a party that has a steady source of income to reorganize debt into a repayment plan and monthly payments.
There are different types of personal bankruptcy to suit different needs and goals of the filing party. Understanding the different personal bankruptcy options available can help a filing party choose the best option for their circumstances.
Source: Daily News, "First-Quarter Bankruptcies Remain Flat," Bill Dries, April 18, 2014