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Local:423-954-7180
Local:423-954-7180

March 2018 Archives

Could Chapter 7 bankruptcy be right for you?

There is no doubt that for some people, the term "bankruptcy" is a loaded term. It may, in their minds, carry a stigma that suggests that those who use it to manage their overwhelming debts have somehow failed. It is important for readers of this Chattanooga-based bankruptcy law blog understand that bankruptcy is legal, it is important and it is a path that offers individuals choices on resolving their personal financial crises.

Understand foreclosure before it becomes a problem

Paying off one's mortgage is often one of the biggest monthly expenses that a Chattanooga resident confronts. When compared to other fixed costs, such as those associated with utilities, car payments and food, a mortgage can dwarf other payments in outgoing expense. However, when a consumer makes complete and timely payments toward their mortgage they get closer and closer to owning their home outright.

When can individuals file for Chapter 11 bankruptcy?

Often when Chattanooga residents consider their bankruptcy options they elect to either pursue Chapter 7 bankruptcy or Chapter 13 bankruptcy. As readers of this debt relief and bankruptcy blog know, Chapter 7 bankruptcy allows a consumer to eliminate their debts through the liquidation of their assets; Chapter 13 bankruptcy allows consumers to reorganize their income and debts to create debt repayment plans.

Different debts have different prioritizations in bankruptcy

In Tennessee, a Chattanooga resident may hold a number of different debts. They may carry balances on their credit cards and may owe money on their home mortgage. If they have a car payment then they are also responsible for paying off a debt to a lender and they may also have debts to banks, friends and family members. All of these different debts, when lumped together, can make for an overwhelming financial situation for the individual and may eventually lead them to consider filing for bankruptcy.

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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