Many Tennessee residents are in debt and searching for solutions. A Chapter 7 bankruptcy is one option for people who are facing credit card debt, medical bills and other consumer debt. When completed, a Chapter 7 bankruptcy can discharge people's debt and give them a fresh financial start.
As college tuition and the cost of living continue to rise, more and more Americans are finding themselves with overwhelming student loan debt. With high interest rates, these debts can quickly spiral out of control and leave a borrower stressing over whether or not he or she will even ever be able to afford to pay it off. When such personal debt creates extreme financial challenges, these individuals may find themselves asking if they can discharge their student loans through bankruptcy.
Many readers are likely familiar with the recent personal bankruptcy filing of Tennessee businessman Allen Casey. The Chattanooga Times Free Press reported that Casey filed for Chapter 7 bankruptcy protection in federal bankruptcy court in Chattanooga shortly after his company, River City Resort, filed for bankruptcy. The bankruptcy came as a surprise to many observers who know the businessman as the man responsible for taking a neglected railroad terminal and turning it into the famous Chattanooga Choo Choo.
Many Tennessee readers may be familiar with Suze Orman. Orman is well known television host and financial advisor who has spent her career educating the public on financial responsibility. Among the wide variety of financial matters that Suze Orman has discussed throughout her long financial career is filing for bankruptcy. According to Orman despite public perception, bankruptcy can actually be very a good option.
In general, consumers struggling with financial challenges can choose to file either Chapter 13 bankruptcy or Chapter 7 bankruptcy. While both form of bankruptcy have pros and cons, Chapter 7 is by far the most popular form of bankruptcy protection in the U.S. One reason is that Chapter 7 allows debtors to get rid of the majority of what they owe creditors and establish the fresh start they need with relative ease.
Chapter 7 bankruptcy provides most bankruptcy clients with a clear and relatively painless path to getting a fresh financial start. While Chapter 7 is the most common form of bankruptcy, its nickname "liquidation bankruptcy" can scare some prospective clients. Tennessee readers considering filing for bankruptcy, but concerned about the effect filing will have on the rest of their financial well being should continue reading.
Long before the great financial crises of 2008, Tennessee had one of the highest bankruptcy rates in the United States. That hasn't changed. In fact, in the first quarter of this year Tennessee had the highest per-capita bankruptcy rate of any state in the country, almost twice the national average.
As discussed in the previous blog, Chapter 13 bankruptcy is a type of reorganization bankruptcy, where the debtor enters into a structured repayment plan over a period of three to five years. This is opposed to Chapter 7 bankruptcy, which is a liquidation bankruptcy. Both Chapter 13 and Chapter 7 bankruptcy have their benefits. In fact, many of the negatives associated with filing for either Chapter of bankruptcy are simply not true.
Even though the economy is beginning to recover, it seems as though no one was left unaffected by the recession. This is indicated by rapper Young Buck's recent decision to file for Chapter 7 bankruptcy in a federal court located in Tennessee. Included in the rapper's liquidation are rights to his intellectual property, which were not considered to be a bankruptcy exemption.