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What to consider before filing for bankruptcy protection

It can be hard to admit when a person has lost control of their finances. An emergency or unexpected event can throw a wrench into a person's plans and destroy their savings in a heartbeat, or over time a person may slowly erode their nest egg due to bad investments and spending choices. However a Tennessee resident finds themselves in the difficult place of considering bankruptcy, there are a number of topics they should evaluate before deciding to jump into the process.

First, before a person elects to file for bankruptcy, they should be sure that there are no other ways that they could alleviate their financial woes. For example, if making changes to their spending habits or moving money into more secure accounts could help them dig their way back "into the black" without bankruptcy, it may be more effective for those options to be exercised in lieu of bankruptcy.

Also, because not all debts are treated the same way under bankruptcy, it is important that an individual investigates if their debts will be discharged should they pursue Chapter 13 or Chapter 7. Bankruptcy could be an unnecessary process if a person's debts are not eligible to be discharged through the option they select.

Finally, although bankruptcy is a financial action, there are emotional components associated with it. A person should be prepared to have their life investigated and carefully reviewed by the individuals involved in their bankruptcy case; this examination of private matters can be stressful for some who wish to use bankruptcy to get out from under their debt. One of the best ways to know if bankruptcy is right for a debtor is for them to talk over their concerns with a trusted bankruptcy attorney. Bankruptcy is a long-term legal event and it is helpful to have someone to assist at each step of the process.

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

Phone: 423-624-4002
Toll Free: 800-257-7594
Fax: 423-624-0509
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