If a Tennessee homeowner or business owner encounters financial challenges, things may get a lot worse before they get better. Many situations leave those who are financially struggling searching for additional options when cutting spending or trying to find a second job does not have the desired results. Sometimes, the most viable option available to provide debt relief and help get finances back on track is to file for bankruptcy protection.
There are immediate and long-term implications involved in a petition for bankruptcy. If a person is unsure whether filing for bankruptcy is the best course of action in a particular set of circumstances, there are several factors to consider. It is also a good idea to seek counsel regarding the legal aspects of the bankruptcy process.
Are the funds available to continue making debt payments?
One of the first factors to consider regarding whether to file for bankruptcy pertains to income. Is there a reliable form of income that generates enough money to continue paying down debt? If the income is available, it means that a bankruptcy program that includes a structured payment plan may be an option.
It is also important to create a list of debts and to review the list carefully. Some debts are not dischargeable through bankruptcy, which may influence a person’s decision on whether filing a petition would help resolve a specific financial crisis. Debts that will not be discharged through bankruptcy include child support, court fines or penalties, certain taxes and other government debts. The best way to explore bankruptcy options and determine which type of program best fits a particular person’s needs is to schedule a consultation with experienced Tennessee bankruptcy law attorney.