While many Tennessee families are able to make ends meet, there are a percentage of Chattanooga residents that are struggling to get through the day due to the state of their finances. It can come to a point where it feels like you or a loved one is drowning in the unpaid bills. Whether tired of living day-to-day on credit cards or sick of the bill collector’s phone calls, it may be time to consider debt consolidation as an answer. Many Chattanooga residents have explored Chapter 13 bankruptcy as a solution to their debt problems.
According to recent reports, the rate of personal and business bankruptcy filings has actually dropped in Chattanooga courts. Meanwhile, the overall rate of bankruptcy filings in Tennessee leads the nation. Property foreclosures are often a trigger for bankruptcies like Chapter 13 bankruptcy. In 2016, 5,689 persons and businesses sought bankruptcy relief in the Chattanooga office of the U.S. Bankruptcy Court.
Chapter 13 is a popular option for Tennessee residents because it re-organizes debt and consolidates in a different way such as with Chapter 7 bankruptcy. Nearly 61 percent of the bankruptcies in Chattanooga courts last year were Chapter 13 filings. Chapter 13 gives those struggling with debt the option to pay back what they owe over time. Many people wish to pay back their debts but just need a different timeline in which to do that.
For whatever reason you are seeking debt relief, Chapter 13 may be the means to an end. It’s possible that it could help stop a foreclosure if you are concerned about losing your home or a business property. Credit card debt can pile up quickly, especially if there was a family emergency like a medical emergency. Consolidation of debt could be the answer for you and your family.
Source: timesfreepress.com, “Bankruptcies fall to 10-year low, but Tennessee still leads the nation in going broke,” Dave Flessner, Jan. 15, 2017