It is disheartening and overwhelming to be in a position in which a person is no longer able to manage his or her financial obligations. Each month, the bills continue to come, and you may not be in a place where you can effectively manage your payments. Interest accumulates, outstanding balances can continue to rise, and you could feel like you will never emerge from your financial spiral. For consumers like you, bankruptcy offers a way out and a method by which you can confront different types of debt.
However, bankruptcy may not be your first choice. You may think of bankruptcy as a desperate option, or you may assume that this will disrupt your life in ways that you cannot manage. In reality, bankruptcy offers you a way to deal with certain balances once and for all, as well as secure your future financial interests. It is important to understand what your life will be like during and after bankruptcy.
Picking up the pieces and moving forward
There are many benefits to filing for bankruptcy for debt-burdened Tennessee consumers. This process can help you confront certain types of balances you owe, and it can help you establish the foundation for a better financial future. However, it is a major legal and financial decision, and it is in your interests to consider the potential implications before you move forward. Some potential implications of filing for Chapter 7 or Chapter 13 bankruptcy include:
- During the Chapter 7 bankruptcy process, you may have to liquidate some of your assets in order to pay off debts.
- Chapter 7 will stay on your credit report for 10 years, and Chapter 13 will remain on the credit report for seven years.
- A bankruptcy filing on your credit report could impact your ability to get a credit card or a loan for a certain period of time.
After bankruptcy, you can work to rebuild your credit by paying your bills on time, maintaining a home and keeping a steady balance in your bank accounts.
A better financial future
Even with the challenges of rebuilding your credit after bankruptcy, you may find that your future is better and stronger after completing the process. An assessment of your debt, your income and other factors can provide insight into whether you will benefit from either Chapter 7 or Chapter 13 bankruptcy.