Are you one of many in Tennessee who are struggling to stay afloat financially? You might have reached a point where traditional means of cutting costs and increasing cash flow are no longer enough to resolve your financial problems. Perhaps you have medical debt or credit card debt that is getting out of hand.
Practical solutions such as eating at home more often, selling assets or strictly using cash instead of credit to make purchases can help a person bounce back from a financial crisis, but those cost-cutting options are not foolproof. In some cases, additional support may be needed, which is where Chapter 7 bankruptcy might enter the picture.
How is Chapter 7 bankruptcy different from other debt relief?
There are several types of bankruptcy. Debt relief programs include Chapter 13, Chapter 11 and Chapter 7 bankruptcy. The latter is available to people whose income is the same or less than the median income in their resident state.
If you file for Chapter 7 bankruptcy, your assets may be liquidated so that the proceeds may be used to pay back lenders. Bankruptcy exemptions protect certain property from this fate. If you earn more than the average household income in your state, you might have to apply for Chapter 13 bankruptcy instead, which is based upon a court-approved plan to reorganize outstanding debt. Richard Banks & Associates, in Tennessee, is fully equipped to address all of your bankruptcy needs and can provide support as you navigate the Chapter 7 bankruptcy system.