Tennessee residents use the bankruptcy process to alleviate burdensome and sometimes overwhelming debts that they accumulate over time. For individuals who earn steady incomes, Chapter 13 bankruptcy can be a useful tool. It allows debtors to create repayment plans through which they identify their debts and creditors, then reorganize the way that they spend their income so that they can, over time, repay the money that they owe to others.

When a repayment plan is completed the debtor may receive their discharge. A bankruptcy discharge not only releases a debtor from their obligations to the creditors who were included in their repayment plan, but also prevents those creditors from pursuing the debtor for the same debts that were included in the plan. It allows a debtor to move past their debts and to start their financial future on more solid footing.

In some cases, though, a debtor may not be able to fulfill their repayment plan. If the cause of their failure is outside of their control and not due to their own fault, the debtor may still be able to achieve a hardship discharge. To secure a hardship discharge, the creditors included in the repayment plan must have received as much repayment as they would have if the debtor had filed for Chapter 7 bankruptcy and there is no way for the plan to be changed.

Achieving bankruptcy discharge is the goal of the bankruptcy process. For individuals who are struggling with debt, Chapter 13 bankruptcy may be a good option for them to take control of their financial futures and to reach the settlement of their outstanding obligations.