Any type of financial decision you make requires an informed thought process and careful discernment. Especially if you’re considering filing for bankruptcy because things have gotten a bit out of hand. It is critical that you research what types of options are available and determine which seems most viable in your particular situation. Filing for bankruptcy is not the end of the world; in fact, many Tennessee residents have used it as a means to overcome serious financial problems and to lay the groundwork for restored financial stability in their future.
There are several bankruptcy categories. Before you can determine which option is most viable in your particular situation, it may be helpful to learn more about the process and how various types of bankruptcy may impact your immediate future as well as your financial status years from now. If you know someone who has filed for bankruptcy in the past, speaking to him or her may also help you streamline your own plan. There are also experienced support networks in place that can point you in the right direction.
Putting a halt to creditor calls
Does your phone seem to ring off the hook with calls from those who say they’re attempting to collect debts on the behalves of creditors? It can be quite frustrating and stressful to deal with such people, especially those whose behavior is aggressive and perhaps constitutes harassment. When you file for certain types of bankruptcy, you receive an automatic stay, which puts a stop to further phone calls of this nature.
Not only does an automatic stay keep you from getting bothersome phone calls from collection agencies, it protects your bank accounts, paychecks and secured assets from garnishment as well.
Determining a best course of action
Bankruptcy can definitely be a solid solution to a serious financial problem. It can provide breathing room so that you can execute a new plan and get things back on track, especially when an unexpected situation has thrown you off course, like loss of employment or a medical emergency. You’ll want to review each type of bankruptcy, particularly the eligibility requirements, to determine whether you should file under Chapter 7, Chapter 13 or some other chapter.
If you have reliable income and enough funds to keep making mortgage payments or paying other bills, you might be able to secure an alternate payment plan through Chapter 13 that allows you to retain ownership of your assets and work toward complete debt satisfaction. This type of bankruptcy may also help you save your home if a lender has threatened foreclosure.
For business owners
If you’re a Texas business owner, Chapter 11 bankruptcy may be your best option for restructuring your business plan and reorganizing your finances. Like Chapter 13, it involves creating a repayment plan over a specific time period but allows you to keep your doors open for business in the meantime.
One step at a time
Your financial problems will not disappear overnight, even if you file for bankruptcy. However, most serious financial crises are temporary, and by tapping into available support resources, you may not only be able to resolve your current problems but may also succeed in preparing for a stronger, more stable financial future as well.