Financial struggles are normal, and most people experience even an abbreviated period of financial difficulty at some point in their lives. However, you may be in a place where you are not able to manage these financial issues on your own, and your debt problem may have spiraled out of your control. You could be facing insurmountable debt and the consequences that come with it, such as calls from debt collectors, threats of foreclosure on your home and more.
If you are struggling with debt that you can no longer manage, you could benefit from bankruptcy protection. While this may not be your first choice, it could provide you with the help you need to deal with certain types of debt once and for all. If most of your debt is secured debt, the ideal option for you may be Chapter 13 bankruptcy, which is reorganization bankruptcy.
How does it work?
Chapter 13 bankruptcy reorganizes debt so that it will be easier to make payments. Over the course of three to five years, applicants will make payments on their restructured debts. The repayment plan focuses on the individual details of your unique financial situation. At the end of the bankruptcy process, the court will discharge certain types of remaining debts. There are many benefits to Chapter 13 bankruptcy, including:
- It will halt the foreclosure process, and you may be able to keep your home.
- You will be able to pay off your debt in an organized manner.
- Payments are manageable.
- Your debt is frozen, which means that interest will not continue to accumulate.
- Anyone who co-signed on your loans will not be liable for the debt.
- It will halt all contact from creditors, including phone calls and letters.
- If you own a business, your company can remain operational.
- You will be free to resell your property if you choose to do so.
Not everyone is eligible for Chapter 13 bankruptcy. If you think this could be the best choice for your financial situation, you may find it helpful to start by seeking an assessment from a knowledgeable professional. This insight can help you make the best possible choices for your long-term interests, and through bankruptcy, you can feel confident that you are setting yourself up for a strong financial future in Tennessee.