Although there was a decrease nationally in bankruptcy filings last year, Tennessee remained second in the nation for bankruptcies, per capita. Nationally, the number of bankruptcy filings dropped 46 percent in January when compared to December, but increased 5 percent from a year earlier. There were 54,574 filings nationally in January, which was a decrease from December, but an increase from November. In Tennessee, there were 5.08 bankruptcies per 10,000 people, slightly down from December.
Different personal bankruptcy options are available to Tennesseans struggling with debt and the stress and burdens associated with it. There are different ways to qualify depending on the circumstances of the party considering bankruptcy and the goals they have for the bankruptcy process. Chapter 7 bankruptcy is a liquidation bankruptcy process that allows the filing party to liquidate their assets to repay creditors and enjoy debt relief.
Alternately, Chapter 13 bankruptcy is another personal bankruptcy option that allows a filing party, with a reliable source of income, to restructure their debts and repay them according to a repayment plan, approved by the bankruptcy court. Debts not included in the repayment plan can be discharged, allowing the filing party to enjoy debt relief.
Battling with overwhelming debt burdens can be a daily struggle. That is why personal bankruptcy options are available for those struggling with debt. Because the process is closely tailored to the circumstances of the filing party, it is important for them to be familiar with the process, how it relates to their unique circumstances and how it can help them enjoy a fresh financial start.
Source: DS News Magazine, “Nation Sees Decrease in Bankruptcy Filings,” Scott Morgan, Feb. 8, 2017
