The United States Bankruptcy Code gives individual debtors two basic choices for bankruptcy: Chapter 7 and Chapter 13. The differences between both types of bankruptcy proceedings may be helpful in deciding which proceeding to use.
While most people may hope to never have to file for personal bankruptcy during their lifetime, others may successfully use bankruptcy to turn around their financial misfortunes. In the event that they stumble back into monetary troubles after receiving their Chapter 13 discharges, some Tennessee residents may wish to use the legal process again to steady their economic difficulties. While a person can file for Chapter 13 bankruptcy more than once, there are time limits on how close together those filings may be.
Financial problems can creep up on anyone. Even when an individual or family has lived comfortably and financially secure for years, life events could drastically change that. A job loss or a serious medical condition could cause major financial problems. This can make it difficult when navigating the matter, causing one to wonder if they will ever get out of the hole. There are options, and bankruptcy can be a solid and beneficial process for those seeking debt relief and a fresh financial start.
Although bankruptcy can be a useful legal process for changing the course of a debtor's financial health, it is not an easy thing to complete. When a Tennessee resident files for Chapter 13 bankruptcy they take on a number of requirements that must be met in full in order for them to reach the end of the process and receive their debt discharge. If they do not fulfill all of their obligations under the scheme they may lose their opportunity to reach the discharge phase of bankruptcy.
Each type of bankruptcy offers Tennessee debtors different options for rebuilding their financial health. Whereas Chapter 7 bankruptcy involves the liquidation of a debtor's assets to pay off their loans and creditors, Chapter 13 bankruptcy uses a debtor's income to create a plan for the repayment of their obligations. It is important that debtors choose the right bankruptcy strategy for their individual needs.
Not all forms of bankruptcy are available to all debtors. While some bankruptcy options are available to individuals, others are only open to certain types of corporations or businesses. For Tennessee residents who wish to use bankruptcy to overcome their financial hardships, there are two main formats that are typically used: Chapter 7 bankruptcy and Chapter 13 bankruptcy.
While many Americans may be moving through 2019 and holding strong to the financial resolutions that they made as the New Year came into being, others may be struggling to pay down their debts as they fight to keep their heads above the economic waters. Some debt relief options may be an action of last resort for a Tennessee resident who wants to handle their debts and obligations on their own, but in some cases it is not realistic for a debtor to find financial success without help. Chapter 13 bankruptcy may be an option for individuals who meet the requirements for pursuing this form of financial help.
When a Chattanooga resident files for Chapter 13 bankruptcy they will be expected to use some of their income to pay off their debts over time through the execution of a repayment plan. As such, a person must have some disposable income that they can dedicate to this purpose. Without disposable income, a person may not be able to fulfill their responsibilities under their unique repayment plan.
Filing for Chapter 13 bankruptcy is the beginning of a lengthy legal process that may force an individual to face difficult truths about their financial situation. For example, one of the requirements of moving through the process that a Tennessee resident must complete is a meeting with the creditors to whom they owe money. The meeting of the creditors can be an intimidating event for a person who is challenged to keep up on their payments to their lenders and loan holders.
There are many procedural steps that must be met in order for a Tennessee resident to successfully implement the repayment plan that they create through their Chapter 13 bankruptcy filing. Their plan must be feasible for them to follow and it must properly prioritize the debts that they are bound to repay. The debtor's creditors must agree to the terms of the repayment plan, and finally the bankruptcy court in charge of the debtor's case must confirm it to allow repayment to begin.