Unmanageable debt is a struggle for many consumers, and this struggle has the potential to take over many aspects of a person’s life. If you are behind on your payments, watching your interest accumulate on top of your balances and facing a future with constant contact from creditors, there are options available to you. One of these options is bankruptcy protection, which is a legal process that allows a Tennessee consumer to deal with his or her debt in an effective manner.
There are many benefits to bankruptcy protection, including a cessation of all contact from debt collectors and creditors. Depending on which type of bankruptcy protection you seek, you may also be able to see a discharge of certain types of debt. Before you decide on your financial future, you will benefit from learning more about bankruptcy and the benefits it could offer for your individual situation.
A solution to a crushing debt problem
Crushing debt not only affects your financial health, but it can also impact your emotional health, mental health and more. Consumers with overwhelming debt may also find that they are constantly dealing with debt collectors and creditors who can initiate many different types of collection efforts against them, including foreclosure, wage garnishment and more. Before you move forward with bankruptcy, it is important to know what types of debts you can discharge through this process, which can include:
- Debt that arose due to fraud
- Personal loans
- Credit card debt
- Medical debt
- Auto loans
While many different types of debt are eligible for discharge, there are limits to what one can discharge during bankruptcy. For example, you will still be responsible for student loans, unpaid tax debt and unpaid child support after the bankruptcy process is complete. An assessment of your specific financial situation can help you understand the exact benefits this process can provide for you.
Debt and your financial future
Debt does not have to control your entire financial future. Through bankruptcy, you may be able to deal with certain types of unpaid balances once and for all. If you are unsure of how this option can benefit you, it might be helpful to seek professional guidance regarding your legal options and the steps you can take that will allow you to regain control and face your future with more confidence.
