Personal bankruptcy options include Chapter 7 liquidation bankruptcy or Chapter 11 reorganization bankruptcy. Depending on the unique circumstances and goals of the filing party, one option may be better than the other. Chapter 7 personal bankruptcy allows the filing party to liquidate assets that are not exempted from the process to repay creditors. Chapter 11 bankruptcy allows the filing party to reorganize their debts to repay over a manageable period of time.
Bankruptcy filings increased recently as Tennessee's numbers remain high. May 2017 bankruptcy filings increased when compared to May 2016 filings. Bankruptcy filings in 2017 also increased from the previous month of April 2017. Overall, bankruptcy filings increased by 5 percent in May 2017 from 66,138 total filings in May of 2016 to 69,668 total filings in May 2017. Personal bankruptcy filings increased from 62,726 in May of 2016 to 66,096 in 2017 which was also an increase of 5 percent.
Commercial filing additionally increased 5 percent in May 2017 to 3,572 filings from 3,412 filings in May 2016. The numbers reveal that both struggling households and businesses are using bankruptcy options to help with a fresh financial start. Tennessee remains the state with the second highest bankruptcy filing rate in the country. Both personal bankruptcy and commercial bankruptcy options provide debt relief for struggling individuals and companies.
It is important for an individual considering filing for bankruptcy to understand which bankruptcy option may meet their needs and the qualification and application processes. All personal bankruptcy options provide a fresh financial start as the hopeful outcome for those struggling with overwhelming debt.