Bankruptcy is a process that helps consumers who have overwhelming debt enjoy debt relief. Bankruptcy laws and bankruptcy courts throughout the country, including in Tennessee, walk filing parties through the bankruptcy process. The personal bankruptcy process can give filing parties the chance at a fresh financial start.
There are two primary types of personal bankruptcy protection. Chapter 7 bankruptcy protection provides for the liquidation of assets to repay creditors and enjoy debt relief. Chapter 13 bankruptcy protection helps the filing party establish a repayment plan to repay their creditors. The bankruptcy process is administered by bankruptcy courts throughout the country. Bankruptcy judges make determinations concerning eligibility for bankruptcy and debt discharges.
A bankruptcy trustee administers the bankruptcy process and manages the liquidation and repayment process as well as the repayment process, administering payment to creditors. The purposes of bankruptcy protection is to provide the filing party with a fresh financial start and to repay creditors through whatever property is available to repay them with. The different types of bankruptcy protection are best for different situations and those considering bankruptcy should be familiar with the options and eligibility requirements. It is also important to note that if the party wishing to file for bankruptcy is not eligible for one type of bankruptcy, they may be eligible for another.
It is useful for those facing overwhelming debt day after day to be familiar with different bankruptcy protections and how they can help them. It is also beneficial for them to understand the process so they are comfortable with how it can help them enjoy debt relief.