For families facing foreclosure, the stress and worry can be unbearable. Fortunately, there are different options available to help those struggling including Chapter 13 bankruptcy which is one option. The two primary types of personal bankruptcy offer certain benefits and can meet the needs of struggling homeowners in different situations.
Chapter 13 bankruptcy is a bit different than Chapter 7 bankruptcy in that it allows the filing party to reorganize and repay their debts according to a repayment plan that usually spans 5 years. This is different than Chapter 7 bankruptcy which allows the filing party to liquidate non-exempt assets to repay creditors. The ways to qualify for the two types of personal bankruptcy are essentially the opposite.
Chapter 13 bankruptcy is a personal bankruptcy option that allows the filing party to reorganize their debt into a manageable repayment plan that allows them to repay debts and enjoy relief from the stresses associated with overwhelming debt. Chapter 13 bankruptcy is referred to as a reorganization bankruptcy option and shares some similarities to other personal bankruptcy options but also differs in certain areas which is why it is important to understand.
Bankruptcy often happens during one of life's most expensive actions: divorce. As Tennessee couples end their marriage and split assets, they may find it extremely challenging to go from two incomes to one while still trying to maintain a household. They may find themselves facing financial challenges while having to worry about common divorce legal issues such as child support and alimony. While divorce and bankruptcy at the same time may seem too overwhelming for someone to take on, a bankruptcy can provide many benefits if debt is becoming too much to bear.
For Tennessee consumers, filing for bankruptcy is a difficult decision. But for those drowning in debt, it's the only option for relief. After making the choice to file, the next question is: Chapter 7 or Chapter 13? Both offer many benefits, but they do have disadvantages as well. Learn more about Chapter 13 bankruptcy and why it's a good choice for many consumers struggling with credit card debt.
Many Tennessee residents who are struggling financially choose Chapter 13 bankruptcy because they want to make a good-faith effort to pay off debts. While Chapter 13 bankruptcy offers the ability to make manageable payments on credit card debt, it's not a magic solution. Bankruptcy does not eliminate all kinds of debt, and there are certain financial obligations that cannot be erased in Chapter 13. Read on to find out what types of debts will remain.
It's important for Tennessee residents to establish a credit history. Without a credit history, it's difficult to buy a car or house or take out a loan. That is why young adults may turn to their parents to co-sign loans so they gain experience making payments. This can be a good solution if the person has a steady job and can afford to make regular payments. However, life does not always go as expected. A person can suddenly face unemployment, divorce or any other type of emergency financial situation, causing him or her to fall behind on payments. This will then affect the co-signers, who will be harassed by creditors. How can you remedy this situation?
When debt becomes too overwhelming, Tennessee consumers may turn to bankruptcy as a last resort. There are two main types of bankruptcy to choose from: Chapter 7 and Chapter 13. Many consumers prefer Chapter 7 because it completely eliminates debt and allows debt-ridden consumers to start a debt-free life quickly. However, in the process, it is possible for consumers to lose their home, vehicles and other assets. That's why many choose Chapter 13 bankruptcy. Chapter 13 works similar to a debt consolidation plan, in which consumers pay down debt through affordable monthly payments. Find out if this option is right for you and whether you qualify.
It's rare that a Tennessee consumer would be enthusiastic about filing for bankruptcy, but when facing enormous financial challenges, it is often the only way out of debt. Although many consumers are embarrassed to talk about their bankruptcy with others, it's not the end of the world. In fact, many people buy cars, open new lines of credit and even purchase houses a few years after filing for Chapter 13 bankruptcy. Although it won't happen overnight, it could happen sooner than one might think by getting back to basics.
When a Tennessee consumer seeks debt relief, he or she may choose bankruptcy. There are two main types of bankruptcy to consider: Chapter 7 and Chapter 13. Many choose Chapter 7 because it can be quick and easy, and virtually all debts are wiped out in a matter of months. Chapter 13 bankruptcy, on the other hand, is the better option for those who want to keep their assets, show a good faith effort in repaying debt and possibly have a better credit score in a few years. However, debtors must adhere to a strict repayment plan or see their case dismissed.