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Choosing between bankruptcy and other debt relief options

As people in Tennessee struggle to make ends meet, they may be evaluating their financial options. When people are facing overwhelming debt, it can be easy to just try and ignore the issues. However, debt will rarely go away on its own. People often need to take proactive steps to get a clean financial slate.

People may have more options than they realize when it comes to debt relief. It can often be difficult for people to determine which option will be best for them.

According to the Federal Trade Commission, it is important for consumers to consider all of their options when it comes to debt relief. Whether individuals choose personal bankruptcy or another option will depend on their individual financial situations. As the FTC explains, there are many non-bankruptcy options for Tennessee residents to consider. Residents are warned to be careful about scams that may seem too good to be true.

However, people may have the ability to negotiate with creditors to come up with a modified plan to pay back any money owed. People may be able to create a more reasonable payment plan that work with their financial situation. Additionally, people may be able to work with credit counseling services to create manageable plans. This may be free of charge and allow individuals to pay back a portion of their debt over time. The FTC claims that individuals may also consider using their home as collateral to pay back debt. This can be risky if individuals fall behind on the payments, since they could lose their home.

If these options don't work for person's financial situation, then there's personal bankruptcy. More specifically, people can choose to file either Chapter 7 bankruptcy or Chapter 13 bankruptcy. The specific chapter that will work best for individuals in Tennessee depend on their individual financial outlook. There are qualification requirements that must be met for each chapter.

It is important for individuals to understand what their debt relief options are and how to best exercise them. An attorney can help individuals come up with a plan for tackling their debt.

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

Phone: 423-954-7180
Phone: 423-624-4002
Fax: 423-624-0509
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