Many Tennessee residents have struggled with finances over the past five years. It might be difficult to find someone who has not, especially with the money problems many experienced due to the pandemic. Many individuals facing difficult financial circumstances file for Chapter 13 or Chapter 7 bankruptcy as a means of obtaining much-needed debt relief and to lay the groundwork for a stronger financial future.
Many Tennessee residents are filing for Chapter 13
Current data shows that the number of Chapter 13 filings have risen in numerous states, including Tennessee. However, overall numbers show that Chapter 7 petitions appear to be on a decline. These two debt relief programs each have a unique set of eligibility requirements, and it is possible to qualify for one but not the other.
October numbers for Chapter 13 were high in Tennessee
There were reportedly close to 750 people who filed petitions for Chapter 13 bankruptcy in this state during the month of October of this year. Throughout the country, there were approximately 10,674 Chapter 13 filings in the same month, which is more than a 30% increase since May, 2021. It is logical to assume that qualification for Chapter 13 suggests that applicants are not out of work, since a person must prove that he or she has a reliable form of income to continue to making payments under at alternated plan to satisfy a debt.
Bankruptcy can be a valuable financial tool
It is a myth that filing for Chapter 13 or any other type of bankruptcy is going to automatically ruin a person’s credit rating. There are several other misperceptions regarding bankruptcy debt relief programs, as well. It is helpful to speak with someone who is well-versed in bankruptcy law in order to dispel the myths and learn more about what type of viable debt relief options may be available in a particular set of circumstances.