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.
With the holidays rapidly approaching and credit cards getting used with vigor, Tennessee residents may be afraid to see their bills in the New Year. It can be easy to let the spirit of giving drive one's desire to buy presents for the people who they love and who are important to their lives. However, holiday spending can be a detrimental practice for those who will not have the money they need to pay off their debts when credit card statements come due.
The loss of a family home to foreclosure can be a nightmare for a Chattanooga resident. Not only must they struggle to find a new place for their loved ones to live, but they must also contend with the serious financial repercussions that can follow foreclosure proceedings. For individuals who are caught in this difficult situation, help may be available through Chapter 13 bankruptcy.
Bankruptcy is a legal process and it is not completed without the filer suffering some consequences. For example, after completing the personal bankruptcy process a Tennessee resident may find that their credit is affected and that they are having trouble getting loans. Bankruptcy helps individuals get out from under financial burdens, but it is not an easy process to fulfill.