This blog recently discussed chapter 13 bankruptcy as one option to help struggling homeowners facing foreclosure. Struggling consumers considering filing for personal bankruptcy protection may wonder what else Chapter 13 bankruptcy might be able to help with.
The possibility of looming foreclosure may be one of the concerns that weights most highly on the minds of those struggling with overwhelming amounts of debt. It is important for anyone who finds themselves in that situation to be familiar with the different options that might help, including bankruptcy.
Although the U.S. economy is now going stronger than it has been in a long time, not everyone is benefiting from the economic recovery. In fact, many Americans continue to live in a situation that qualifies as "paycheck to paycheck," in which they do not have any savings or financial cushion to protect them in the event of unforeseen circumstances.
Bankruptcy filings continue to decline, however, bankruptcy filings in Tennessee continue to remain amongst the highest per capita for bankruptcy filings in the nation. Throughout last year, Tennessee was second in the highest number of per capita bankruptcy filings. The American bankruptcy Institute reported that bankruptcy filings for 2018 continued to decline overall for the ninth consecutive year but the bankruptcy rate in Tennessee was the second highest in the country.
Chapter 7 personal bankruptcy has important protections built into the process. One of the protections includes Chapter 7 bankruptcy exemptions which exempt certain property from the liquidation bankruptcy process. An important exemption to be familiar with the homestead exemption.