Bankruptcy protections can protect consumers and businesses alike, which is why it pays to be familiar with bankruptcy options. According to the American bankruptcy institute, commercial bankruptcies increased last month while personal bankruptcies declined. Total bankruptcy filings dropped by 1 percent while consumer bankruptcy filings dropped by 2 percent. Commercial bankruptcy filings were up 10 percent last month.
Though bankruptcy numbers may have dropped, Tennessee remained number 2 in the nation for per capital filings. Bankruptcy protections can provide relief for both struggling consumers and struggling businesses. Thought the exact bankruptcy options differ, the nature and type of relief they provide are similar, as is the process in many ways. It is important to note that there are liquidation bankruptcy options and reorganization bankruptcy options available to both struggling consumers and struggling businesses.
Chapter 7 bankruptcy is a resource available to both struggling consumers and businesses, though how it works may vary a little in each instance. Chapter 7 bankruptcy allows a struggling consumer, or business, to liquidate non-exempt assets to repay creditors. Reorganization bankruptcy options live as Chapter 13 bankruptcy for consumers and Chapter 11 bankruptcy for businesses. Thought the processes are not identical, both provide relief by allowing the filing party to reorganize their debt to repay it over time and enjoy debt relief.
Bankruptcy options are a valuable resource that can protect struggling consumers in a number of ways once they have filed for bankruptcy. Bankruptcy options can help end the stress of overwhelming debt so that filing parties can enjoy a fresh financial start and get back on their feet again.