One of the most significant issues that come with owing a significant amount of debt is the pressure from creditors and debt collectors to make payments on that debt. If you are behind on your payments, you may encounter different efforts to collect payment in the form of wage garnishment, foreclosure on your home and more. These are stressful threats, and you may feel like there is no way out of your current financial situation without help.
Thankfully, there are options available to you, including the possibility of filing for bankruptcy. This may not seem like an attractive option, but it could be the best way for Tennessee consumers to emerge from their current situations and reclaim financial stability. Filing for bankruptcy does not mean that you will have to relinquish your most important assets or live without what you need for daily life.
You can keep your property
Chapter 7 is the most popular bankruptcy option for those who are seeking an escape from their outstanding debt, particularly if it is unsecured debt. Chapter 7 bankruptcy is liquidation bankruptcy, but that does not mean that you will have to give up property that is most important to you. In fact, bankruptcy law provides exemptions that allow applicants to keep many of the assets that are most important to them. Even if you apply for Chapter 7 bankruptcy, you may be able to keep the following assets:
- Tools of the trade that you need for your job
- Appliances and necessary furniture for your home
- Reasonably necessary clothing and other things for daily life
- Motor vehicles, worth up to a certain value
- Pensions and a portion of equity in your home
- Damages awarded for personal injury
- Public benefits and public assistance
There are certain types of assets, however, that are not exempt from Chapter 7 bankruptcy liquidation. Some of these things may include cash, bank accounts, family heirlooms, second vehicles and second homes.
A stronger future
Bankruptcy can be the pathway to a better and stronger financial future, and it does not mean that you will be left without your property and meaningful assets. If your debt is overwhelming you, you may benefit from an assessment of your situation to determine if Chapter 7 could be the most beneficial and practical option for you.