Bankruptcy can be a challenging subject, but it does not have to be since it is designed to help struggling families and individuals. No matter a person’s situation or reason for filing, bankruptcy can be a real and workable solution for many.
Though bankruptcy filings declined in April when compared to April of last year, the number of bankruptcy filings in Tennessee continues to rank high. Tennessee ranks second on the list of states with the most bankruptcy filings per capita. Bankruptcy filings for April also showed a drop from March. Noncommercial personal bankruptcy filings totaled 64,323 for April of this year. In addition, the total number of commercial filings for April 2017 declined when compared to April of last year. Commercial filings also declined when compared to March.
Overall, the per capital bankruptcy filing rate increased nationally in April when compared to the first 3 months of the year. Personal bankruptcy options are a process for families and individuals facing financial challenges to consider. Different options, depending on the circumstances, are available to help filers liquidate non-exempt assets to repay creditors or to reorganize debt into a manageable repayment plan to be repaid over time.
Each process, either a Chapter 7 liquidation bankruptcy or Chapter 13 reorganization bankruptcy, begins with an automatic stay after filing that prevents creditor collection actions while the bankruptcy process progresses and ends with a debt discharge to help families and individuals enjoy debt relief and a future free of the burdens associated with debt. The ability to file for one bankruptcy process or another depends on the filing party’s circumstances, so it is helpful to have a careful understanding of the options available.
Different personal bankruptcy options are available to ensure that individuals in different situations who are struggling with overwhelming debt can be unburdened through the process and able to look forward towards a productive future. The bankruptcy process is available to help those struggling with financial challenges, so it is something they should be familiar with when considering their options for enjoying a fresh financial start.
Source: ACA International, “Bankruptcy Filings Show Broad Decline in April,” May 10, 2017