Bankruptcy relief is an important legal protection for struggling consumers to be familiar with. While there was a year-over-year drop in consumer bankruptcy filings, the number of consumers seeking bankruptcy protection during August increased. Commercial bankruptcy filings also rose year-over-year and in the month of August. One expert noted that recent changes in the law have provided better access to bankruptcy protection for struggling small businesses, family farmers and veterans.
Tennessee is second in the nation for per capita bankruptcy filings. Bankruptcy protections can serve as an important resource for struggling consumers seeking a fresh financial start in Tennessee and elsewhere. There are two different types of personal bankruptcy protections struggling consumers may have access to. Chapter 7 bankruptcy protection provides an option for a struggling consumer to liquidate non-exempt assets to repay creditors and enjoy debt relief that way.
There is also an alternative to liquidation bankruptcy for struggling consumers who wish to reorganize their debt and repay it over a period of time which is usually 3 to 5 years. Chapter 13 reorganization bankruptcy allows the filing party to repay their debts according to more manageable payments that are part of the repayment plan worked out with the bankruptcy court. Either personal bankruptcy option allows the filing party to enjoy debt relief.
It is important that struggling consumers are familiar with bankruptcy protections in Tennessee that can help them find relief from the stress of overwhelming debt. Deciding which personal bankruptcy option is best for the filing party can be the first step in the process of debt relief and a fresh financial future.