Constantly dealing with overwhelming debt can have an extremely detrimental effect on a person's quality of life. Credit card debt and medical expenses are just two examples of debts that put a multitude of individuals through periods of financial struggle. Perhaps you are suffering under similar financial circumstances, and you may be wondering about available options for relief.
Carefully considering the impact and consequences of each decision is a good place to begin. You may be giving a fair amount of thought into some long-term options, and subsequently wondering if bankruptcy is the correct choice for you.
Is bankruptcy the right choice?
When considering personal bankruptcy, you will more than likely be looking at two options, Chapter 7 and Chapter 13. These types of bankruptcy have significant differences and before choosing which path to take, consider the following crucial factors:
- Alternatives: Weighing your options before choosing a path is generally advisable. In some cases, bankruptcy may not be the answer you are looking for.
- Eligibility: If you have decided on bankruptcy, regardless of the type, you should check the requirements to make sure you are eligible before moving forward.
- Debts: You will probably want to figure out which debts will be, and which won't be, discharged in the process to figure out which type of bankruptcy is the right fit for your situation.
- Assets: Depending on the type of bankruptcy, you might have to liquidate certain assets to cover a part of your debt.
- Other affected parties: If someone co-signed for any of your debt, he or she could end up responsible for your debt, depending on the type of bankruptcy you file.
In addition to the U.S. Bankruptcy code, you may need to consider if any Tennessee bankruptcy laws apply to your situation as well.
Advice and assistance for bankruptcy
Both types of personal bankruptcy have a few temporary downsides, but they could also relieve some of your current financial stress and ultimately lead you toward a healthier financial future. If you need relief for your debts, and you are leaning toward personal bankruptcy, you may be wondering how to proceed.
By speaking with a bankruptcy attorney, you may be able to obtain some much-needed advice and peace of mind. An experienced attorney can cover the crucial aspects of bankruptcy with you, and if you so choose, subsequently assist you throughout the process of filing for Chapter 7 or Chapter 13 bankruptcy depending on your situation.