People that used bankruptcy as a valuable tool

On Behalf of | Mar 2, 2021 | Chapter 13 Bankruptcy |

Many Tennessee residents are struggling to stay financially afloat either in business or just making ends meet at home. Some of them could benefit by seeking bankruptcy protection, which is a valuable financial tool. Filing for bankruptcy has helped countless individuals and families alleviate debt, laying a foundation for a fresh financial start.

A woman used bankruptcy to overcome divorce-related financial crisis

It is not uncommon to encounter significant financial problems after divorce. This is especially true for those who sacrificed their careers to stay home full-time during marriage and have been out of the workforce for years. A 52-year-old woman said that she tried to get on her feet after divorce by making a business investment, which turned out to exacerbate her financial problems instead of resolving them. Thankfully, someone close to her recommended that she apply for Chapter 13 bankruptcy, which she did and which helped her solve her financial problems.

Credit card debt was out of control

In addition to Chapter 13 bankruptcy, the Chapter 7 program can also be of help in eliminating debt. A 32-year-old woman stated that she was regularly using approximately 13 credit cards and had incurred tens of thousands of dollars in debt that she had no means of paying. She filed for Chapter 7 bankruptcy, which discharged not only her credit card debt but several personal loans and medical debt, as well.

Determining which type of bankruptcy is best

It is possible to qualify for one type of bankruptcy but not another. This is why a person considering it as an option must research which options are available, as well as what the eligibility requirements are for each. It is helpful to consult with someone who is well-versed in bankruptcy issues to seek clarification on applicable laws and recommendations as to which might be a best course of action in a particular set of circumstances.


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