Are you a little in over your head where your finances are concerned, or perhaps you’ve already passed that point and are in full-out financial crisis mode. It can be a very overwhelming feeling trying to keep your head above turbulent waters in a proverbial financial sea. One of the best things you can do in such circumstances is try not to panic. There may be resources available in Tennessee to help you obtain debt relief.
It doesn’t matter so much what led to your current financial problems as much as it does that you know where to turn for help when you need it. Restoring financial stability may not be as swift a process as you would like, but it may indeed be possible with the right kinds of financial tools and know-how. There are several common types of debt relief, including Chapter 7 and Chapter 13 bankruptcy plans. Which one best suits your particular needs depends on several factors.
What’s the difference between the two?
When you hear phrases like Chapter 7 or Chapter 13, it sounds as though you’re talking about reading a novel. In fact, these two debt relief plans comprise nearly 100 percent of all personal bankruptcy cases. The following list provides facts that explain how the two plans vary:
- Chapter 7 is typically reserved to those of a lower income level than those filing for Chapter 13.
- Filing for Chapter 7 is not as complex a process as filing for Chapter 13.
- Generally speaking, the Chapter 7 process doesn’t usually take as long as Chapter 13.
- If you file for Chapter 7, your creditors may approach your co-debtors for payment.
- Chapter 13, protects your co-debtors from creditors trying to collect payments from them to satisfy a debt.
- If you have already filed for Chapter 7 in the past, you can’t file again.
- That is not the case with Chapter 13.
If you file for a Chapter 7 but earn a high enough income to qualify for Chapter 13, the court may order you to change filings. Either system allows you to obtain debt relief although both typically will reflect some damage on your credit rating. Both options may help you get your financial life back on track, and one or the other may be the most viable option in your current financial situation.
The best thing to do if you’re unsure which option best suits your needs is to discuss the issue with someone who has filed bankruptcy in the past or with a Tennessee bankruptcy attorney.