The most important thing for Tennesseans filing for, or considering, personal bankruptcy protection to understand is how the process works. Personal bankruptcy options exist to help struggling consumers who should be as familiar with their options to help them enjoy a fresh financial start as possible.
There are two broad categories of personal bankruptcy protection. It is important for parties considering filing for bankruptcy to note that they may be able to start out with one type of personal bankruptcy protection that makes sense for their situation at the time but can also change to a different type of bankruptcy that makes sense for their changing situation if they need to. Personal bankruptcy is a resource to help struggling consumers get back on their feet.
Those considering filing for bankruptcy should know how to consider their options. Chapter 7 bankruptcy is broadly referred to as a liquidation bankruptcy option. It allows a filing party to liquidate non-exempt assets to repay creditors and enjoy debt relief. Certain property is considered exempt from the process through property exemptions filing parties need to be familiar with. Alternately, Chapter 13 bankruptcy is broadly referred to as a reorganization bankruptcy option that allows the filing party, with a reliable source of income, to reorganize their debts into a repayment plan that will allow them to enjoy debt relief over a 3- to 5-year period once the repayment plan is complete.
Dealing with overwhelming debt can be hard on struggling consumers each day which is why personal bankruptcy options exist. It is crucial for those considering filing for bankruptcy not to be intimidated by the process, to be aware of the different bankruptcy options available and which one might work best for them so they can come out on the other side of the process with a fresh financial start.