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.
Individuals struggling with overwhelming debt should understand that bankruptcy options are available to them. Different personal bankruptcy options may be available to help guide struggling consumers through the process of achieving debt relief. There are parallels between the different processes but different personal bankruptcy options are designed to help struggling consumers in different situations.
Whether the filing party has filed for Chapter 7 bankruptcy protection or Chapter 13 bankruptcy protection, once they have filed their bankruptcy petition, an automatic stay goes into effect which prevents creditors from pursing any collection actions against them while the bankruptcy process progresses. Chapter 7 personal bankruptcy serves as an option for filing parties who wish to liquidate non-exempt assets to repay debts and enjoy debt relief. For filing parties that wish to reorganize their debt and pay it over time, and have a reliable source of income to do so, Chapter 13 reorganization bankruptcy protections are available.
Personal bankruptcy options are designed to help consumers who have experienced financial hardships and difficulties that may come up for a variety of reasons. It is important for individuals struggling with overwhelming debt to be aware that these options are available to help them.