For many Tennessee residents, financial strain has altered daily life. The stress and turmoil of being buried under a mountain of debt is hard to properly portray, but anyone who has lived this way knows exactly what it means to feel overwhelmed by debt. Chapter 7 bankruptcy offers a path out of debt and back toward financial stability, but there are a number of things that should be considered before taking that step.
The first matter at hand is to complete a thorough assessment of outstanding debt. Many people fail to properly tally their outstanding financial obligations, especially when debt has been an issue for a lengthy period of time. Before filing for bankruptcy, individuals must be certain that there are no better ways to address their debt. It is also important to understand that money owed in taxes, child support, student loans or certain other obligations will not be discharged during a bankruptcy case.
It is also important to acknowledge that an individual's credit score will take a hit in the months that follow a bankruptcy filing. For many people who have struggled with debt for years, their credit score is already compromised due to late payment and high balances. It should also be noted that once the bankruptcy is complete, consumers can begin rebuilding their credit right away.
Filing for Chapter 7 bankruptcy is not a decision that should be made lightly. In order to know if this is truly the best available option, Tennessee residents must take a close and thorough look at their current financial standing, and determine if bankruptcy is the best path forward. Meeting with a bankruptcy attorney can help with that process, and can provide individuals with all of their available debt relief choices, up to and including Chapter 7 bankruptcy.
Source: Men's Fitness, "5 reasons filing for bankruptcy could save you from life-crushing debt", Damon Trent, April 24, 2017