Bankruptcy is an important resource for those struggling with debt to consider. Bankruptcy rates were up last month nationally and also increased 3% when compared to the same month last year. The total number of bankruptcies last month nationally was 64,283. Both personal and consumer bankruptcy rates increased. Tennessee had the second highest rate of bankruptcy filings in the country. The average bankruptcy rate per capita nationally last month was 2.5 per 10,000. The rate in Tennessee was over twice that at 5.39.
Bankruptcy options are available for individuals and businesses wishing to wipe out debt and enjoy a fresh financial start. Both liquidation and reorganization bankruptcy options are available for individuals and businesses. There are two primary types of personal bankruptcy protection that individual consumers can file for. Each offers the benefit of a stay of creditor collection actions while the bankruptcy process progresses and a debt discharge at the end of the process.
There are a variety of details between filing for bankruptcy and receiving a debt discharge to be familiar with. Chapter 7 bankruptcy is one type of personal bankruptcy protection that is referred to as a straight bankruptcy or a liquidation bankruptcy that allows the filing party to liquidate non-exempt assets to repay creditors. Chapter 13 bankruptcy is another personal bankruptcy option that allows the filing party to reorganize debts into a manageable repayment plan that can be paid overtime.
Bankruptcy is an important protection that struggling consumers and businesses have available to them. As a result, those seeking debt relief should be familiar with their options to determine which option is best for them, their goals and their situation if they are considering filing for bankruptcy protection.