brand brand
Helping good people through bad times
Local:423-954-7180
Local:423-954-7180

Chapter 13 bankruptcy: way to eliminate debt in Chattanooga

Our lives are full of uncertainties. Even an otherwise financially stable individual in Tennessee may face unexpected life changes like unemployment or serious health issues, which, in turn, could drastically impact his or her financial well-being.

People who encounter unexpected financial challenges often use credit cards to make ends meet. Debt can quickly accumulate from small purchases, medical expenses and living expenses. Failure to settle unpaid bills can result in huge interest rates, and, over time, these debts may seem unending. For people who want to eliminate debt, bankruptcy is a viable option. Bankruptcy is an economic tool that allows honest individuals to settle their debts. The federal government supervises the proceeding and grants the request of debtors based on their needs.

Chapter 13 bankruptcy, also known as Reorganization Bankruptcy, is one type of bankruptcy that is commonly chosen. Under this type of bankruptcy protection, the debtor will undergo a reorganization plan and pay the debt over a period of three to five years. Once the debtor has finished paying the debt, the remaining debts will be discharged.

I creditors sue the debtor because of the accumulated debt. Filing for bankruptcy will protect the debtor from creditor harassment, lawsuits, foreclosure and levies. This frees up the debtor to focus on settling the debts.

To know more about bankruptcy and Chapter 13, Chattanooga residents may consult a bankruptcy legal professional who can explain everything. The legal professional can also suggest other options that fit the needs of the debtor most appropriately and make the most sense in that particular situation.

Source: Goerie.com, "Bankruptcy myths and facts," Katie Schwartz, Oct. 6, 2013

No Comments

Leave a comment
Comment Information

Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-954-7180
Phone: 423-624-4002
Fax: 423-624-0509
Map & Directions