“Straight bankruptcy” is just another name for Chapter 7 bankruptcy and the process that goes along with it. Readers of this Tennessee debt relief and bankruptcy blog may know Chapter 7 bankruptcy to be the process of liquidating one’s personal assets in order to pay off creditors and attain financial freedom.
Unlike Chapter 13 bankruptcy, which involves long-term financial planning and using one’s income to pay off debts, Chapter 7 bankruptcy gets straight to the point of resolving a debtor’s issues by wiping out debts in a one-time transaction. The proceeds of a liquidation sale are applied to the debts that the individual has to their creditors and in the end the debtor is released from the financial obligations that were tied to their bankruptcy discharge.
Chapter 7 bankruptcy is a good option for people who do not make enough money to pay off their debts on their own. If a person had the income to put toward what they owe their creditors, they may benefit from using the protections of Chapter 13 bankruptcy. However, if a filer simply does not have the financial capacity to delegate their earnings to their debts, then straight bankruptcy may be for them.
Before filing for bankruptcy, a person should be knowledgeable about what they are getting into and what will be asked of them in the bankruptcy process. In order to receive accurate information about bankruptcy that is tailored to the actual facts of their financial situations, our readers are encouraged to get more information. Doing so may help a person find the help they need to improve their financial difficulties and debts.