Chapter 7 bankruptcy protection is one of the two big types of personal bankruptcy protection protecting struggling consumers and their families from the crush of overwhelming debt and financial obligations they cannot meet. Medical debt and other everyday concerns can get struggling consumers into trouble they may wonder how to fix which is why personal bankruptcy options are available to help.
Bankruptcy protections can help consumers struggling with medical debt. Tennessee is the leading state in the nation for medical bankruptcies. The director of a Tennessee nonprofit that helps Tennessee families with health care issues noted that some families are having to make the difficult choice between food and medicine. He added that 70% of Tennesseans have some type of medical debt. A new initiative was recently started in Tennessee to help those struggling with crippling medical debt. Overall, the state leads the nation in medical bankruptcies.
Experiencing problems with debt and creditors is challenging enough, but things can become more complicated when you are self-employed. In fact, your employment arrangement may have contributed to the situation, as being your own boss can be not as predictable and stable as being a salaried employee.
Chapter 13 bankruptcy is one of the two major types of personal bankruptcy protection. It involves working with the bankruptcy court to develop a repayment plan that allows the filing party to repay their debts over a period of time which is typically three to five years. At the end of the process, they can enjoy debt relief.
There are two primary types of bankruptcy protection that fall under the umbrella of personal bankruptcy protection. Both provide an opportunity for debt relief and can help the filing party pursue greater financial freedom so those considering personal bankruptcy protection should be familiar with their options.