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.