When a Hamilton resident cannot pay their bills, cannot keep up with the minimum payments on their credit cards and cannot handle the influx of expenses that burden them each day, they may need to consider significant steps toward eliminating their debts. In situations like this where a person has no extra income on which to make a dent into their debt it may be best for them to try to wipe out as many of their financial obligations as possible through the liquidation process of Chapter 7 bankruptcy.
A common misconception may exist in the minds of some Tennessee residents regarding the bankruptcy process. That misconception relates to the ability of an individual to file for protections under the bankruptcy process. While in some situations it may be true that a person can file for some form of bankruptcy, because the different types of bankruptcy employ different requirements, that person may not qualify for all forms of bankruptcy.
Most Tennessee residents understand bankruptcy to be a process that wipes out all of a person's debts. There are, of course, sacrifices that individuals must make for financial freedom, such as the liquidation of their assets under Chapter 7 bankruptcy or the assignment of their disposable income to creditors in Chapter 13 bankruptcy. To some, these may seem to be minor inconveniences necessary to start over on a clean financial slate. However, it is important that readers understand that not all of their debts may be discharged when they complete their Chapter 13 filing.
Once a Tennessee debtor realizes that bankruptcy is the only option and Chapter 13 is the optimal choice, there will be other issues that must be fully understood as part of the process. Adhering to the Chapter 13 plan is a key to getting debt relief and a fresh financial start, but debtors might be concerned about how much they must pay back and what will happen if they fail to keep up with the payments. Having information about these issues is crucial to having a successful outcome.
Tennesseans who are drowning in debt and desperate to make a fresh financial start will often see Chapter 13 bankruptcy as a financial lifeline. Chapter 13 is different from Chapter 7 in that there is no liquidation, and there will be a payment plan for three to five years.
Tennesseans who are moving forward with a bankruptcy under Chapter 13 must understand when the payments must start and its connection to the confirmation hearing. Since Chapter 13 is a repayment plan rather than a liquidation and, depending on the situation, the payments are required to be made within three to five years, the timing of when the payments will commence is vital. So too is the confirmation hearing.
Tennesseans who are experiencing financial challenges and have chosen to move forward with a Chapter 13 bankruptcy will undoubtedly understand the basics of the program once they choose it over other alternatives. With a Chapter 13, a plan will be created so the debtor can repay all or some of the debts in a designated time-period of three to five years. For those who have a regular income, this is a sound method to getting a fresh financial start without having to go through a possible liquidation with a Chapter 7.
Many Tennessee residents may be hesitant to explore the possibility of a bankruptcy filing for the simple reason that they may think they do not know enough about the process to make a confident decision. As a result, they go on being burdened by overwhelming debt, struggling to make payments. However, for those who are earning an income, Chapter 13 bankruptcy may be the best option.
For consumers in Tennessee, there are two main options when filing for bankruptcy: Chapter 7 and Chapter 13. Chapter 7 is known as liquidation bankruptcy, as filers will generally list all of their non-exempt assets, which are then sold off to repay creditors and then remaining debts are discharged. Chapter 13 bankruptcy is quite a bit different. Chapter 13 bankruptcy includes a repayment plan.
Most people in Chattanooga know that there are different types of bankruptcy filings. However, they may not know the difference between these plans. For instance, what are the basics of Chapter 13 as opposed to Chapter 7 bankruptcy?