Personal bankruptcy options exist to help when individuals are facing financial challenges in a struggling economy. While it is a challenging reality to accept and an extremely difficult step to take, filing for bankruptcy can be a real solution for those dealing with financial troubles in Tennessee and elsewhere.
A bankruptcy trends report recently showed that national bankruptcy filings rose in February of 2017. The reported increase was from 54,574 bankruptcy filings in January of 2017 to 58,336 bankruptcy filings in February of 2017. The total of bankruptcy filings for February 2017 was, however, a decrease from February 2016. In addition, for the first time in 5 years, bankruptcy filings for 2016 were up 6 percent year-over-year.
Tennessee was ranked second highest in the number of filings with 5.23 bankruptcy filings per 10,000. Bankruptcy options in Tennessee are designed to help those struggling with debt enjoy debt relief and a fresh financial start without the stress and strain of overwhelming debt. There are different types of personal bankruptcy options for filing parties in different situations. Different personal bankruptcy options may be better than another for a filing party based on the individual's circumstances and goals.
The two primary types of personal bankruptcy are Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 bankruptcy is available to individuals who meet income requirements and would like to enjoy debt relief. The Chapter 7 bankruptcy process allows for non-exempt assets to be liquidated to repay creditors. Certain assets enjoy protection from the bankruptcy process so it is important to understand those rules. Chapter 13 bankruptcy is another option available to filing parties with a reliable source of income to reorganize debt and repay it as part of a 3 to 5 year repayment plan.
Bankruptcy options continue to be a resource for individuals struggling with debt to consider. Because different options are better suited to certain situations than others, it is important to fully understand the different personal bankruptcy options and how they can help when considering filing for bankruptcy.
Source: DSNews, "Bankruptcy Filings on the Rise," March 27, 2017