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There are advantages to filing for personal bankruptcy

Bankruptcy is a serious legal process that can have long-term financial ramifications on the economic health of those Tennessee residents who choose to pursue it. However, for some, the potential drawbacks of having a bankruptcy on their records may be outweighed by the advantages they experience by ridding themselves of burdensome debts.

This post is not offered as legal or financial guidance, but it is provided as a starting point for readers who may wish to learn more about the many advantages that personal bankruptcy can offer.

For example, a person in some cases may be able to discharge old tax debts through bankruptcy. While debts accrued in the prior three years generally cannot be discharged, old tax obligations may be wiped clean through the process.

Additionally, while bankruptcy can harm a person's credit score, a person can rebuild their credit after bankruptcy and establish themselves as a trustworthy recipient of loans. Having unpaid debts or judgments against them may be more detrimental to their financial futures than having completed bankruptcy.

Also, contrary to what many believe, through bankruptcy a person may be able to protect more of their possessions than if they tried to manage their expanding debts on their own. Bankruptcy can help stop repossessions and foreclosures, which mean debtors can hold onto their property longer.

Every person will have a unique experience when they file for personal bankruptcy. Whether they elect to use Chapter 7 bankruptcy or Chapter 13 bankruptcy they will have to meet the requirements and procedural steps of the process they have chosen. While bankruptcy may not be the best option for all debtors, it is important that individuals recognize that advantages can exist to using the process to eliminate burdensome debts.

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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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