In Tennessee and throughout the country, many people are facing unsettling financial issues. While each household’s issues are unique, many people can relate to similar experiences, such as unexpected medical bills causing credit card debt to spiral out of control. Thankfully, programs such as Chapter 13 bankruptcy have helped many people reorganize their finances, pay off debt and lay the groundwork for a stronger financial future.
How is Chapter 13 different from other bankruptcy programs?
Each program carries its own eligibility requirements, which must be met before filing a petition for debt relief. Chapter 13 is unique because it enables an applicant to retain ownership of major assets, such as a home, vehicle or property. To be eligible, an applicant must prove that he or she has a reliable form of income that generates enough funds to continue to make payments to creditors under a revised payment plan.
Why is there a stigma attached to filing for bankruptcy?
Sadly, many people assume that someone who has filed for bankruptcy has mismanaged his or her finances. Not only is this often not the case, but bankruptcy can be a valuable financial tool to restructure finances when unforeseen circumstances arise, making an existing payment plan no longer feasible. Creditors must agree to a proposed restructured payment plan before a person can file a Chapter 13 petition.
Two-thirds of bankruptcy claims are prompted by medical debt
Not only do many Tennessee residents run into financial trouble because of unexpected medical bills, a lot of people have funds set aside for emergencies but struggle to make ends meet when they have to take time off work during recovery. A bankruptcy law attorney can help a person explore his or her debt relief options, particularly to determine if he or she qualifies for Chapter 13 bankruptcy. Such an attorney can also provide support if any legal complications arise during the application or restructured payment process.