If you are constantly dealing with the burdens of debt, you are not alone. Countless individuals have experienced similar struggles at some point in life. Although knowing that others feel your pain might not actually help, you may be able to find solace in the fact that many have overcome these struggles through various forms of debt relief.
Perhaps you have tried a budget, or even tried to cut back on expenses, but with an overwhelming amount of debt, these options may do little to correct your financial issues. You could consider exploring the possibility of filing bankruptcy, as a more long-term solution might be the answer for your current predicament.
Types of bankruptcy and potential outcomes
Perhaps your debts were unavoidable, such as those from a sudden and unexpected trip to the hospital. Along with credit card debts, medical expenses are one of the leading causes of personal debt. You might be wondering about your options concerning consumer bankruptcy, and depending on your circumstances, you will likely be looking at two common outlets, which include:
- Chapter 7: If you are unable to repay debts, a Chapter 7 bankruptcy may release certain financial responsibilities via discharge. However, this process also calls for the liquidation of some assets, and obtaining guidance before proceeding may help inform you of the advantages and disadvantages thereof.
- Chapter 13: Perhaps you believe you can repay some of your debt, but the total sum is too heavy to bear. In Chapter 13, you can form a plan to repay a part of the debt while retaining possession of your assets, but you must strictly adhere to the proposed plan.
With the most common options in mind, you might also have concerns about other areas of bankruptcy. Some crucial considerations before entering the process might include:
- Impact on credit: A bankruptcy will remain on your credit for a set period, which could disrupt your ability to acquire additional lines of credit, even if only temporarily. However, if you are unable to repay debts, the outcome could be much worse in the long run.
- Debts not covered: Certain debts, such as student loans, taxes and child support may not be eligible for discharge.
- Additional options: Bankruptcy inherently has its advantages and potential disadvantages, and exploring every available option before choosing a path is likely in your best interests.
If, after weighing the options, you consider bankruptcy to be a viable route for relief, you may find it helpful to obtain assistance from someone with experience in the area for advice on how to proceed with consumer bankruptcy.
Guidance moving forward
With several options to choose from and the potential ramifications thereof, you might be feeling somewhat intimidated by the process. However, you do not have to navigate through this stressful period alone, and seeking assistance from someone with extensive knowledge in federal and Tennessee bankruptcy laws might be the best move to make. Obtaining such guidance could prove beneficial to choosing and pursuing the correct path with which to obtain relief for the financial burdens of overwhelming debt.