When a financial crisis hits hard, Tennessee homeowners or business owners may start to worry that everything they have worked so hard to achieve will be lost. Sadly, in some cases, that is a real possibility, such as if lenders decide to foreclose because of a delinquent mortgage loan. But does a notice of foreclosure always result in the loss of a home? The answer is, “No,” especially if a homeowner is eligible to file for Chapter 13 bankruptcy.
There are several bankruptcy programs available for those in need of debt relief. Chapter 13 is mostly filed by individuals (or Chapter 11 by business owners) who are in over their heads and need to find a way to pay lenders and restore solvency. This program also helps people avoid losing their homes because it creates an automatic stay against foreclosure, debt collections and litigation and enables people to keep making payments against their debts if the court approves a debt reorganization plan.
Chapter 13 is a useful tool for those with credit card or medical debts
If you fell into the habit of using credit to pay for medical bills, food, car repairs or other costs, you are not alone. Many people can relate to such circumstances. Chapter 13 bankruptcy is a program that also enables you to restructure your payment plans on secure debts, such as a mortgage loan. A restructured plan can make payments feasible and can also free up certain funds to pay down other debts, as well.
Guidance and support available to help navigate the system
Tennessee homeowners or business owners who are struggling financially are often dealing with other stressful issues as well, such as creditor harassment, loss of income, vehicle repossession, and more. It’s helpful to seek guidance and support from someone who is well-versed in Chapter 13 bankruptcy laws, or in Chapter 11 petitions for businesses. Richard Banks & Associates offers a free consultation to help determine the best debt relief strategy in a particular set of circumstances.