Many people are entering 2020 with a significant amount of debt, which typically comes along with a good deal of stress. It can be especially stressful when debt collectors start calling or creditors resort to certain types of collection efforts, such as wage garnishment. To make this process stop and gain a fresh financial start, some people look to Chapter 7 bankruptcy for relief.
Filing for bankruptcy can stop all collection efforts, halting the foreclosure process, stopping wage garnishment and giving a person relief from all of the phone calls from collections. However, it can be a costly process that can impact a person’s credit for years to come. Before moving forward with this choice, a Tennessee consumer will want to think carefully about the potential benefits and drawbacks of this decision.
Chapter 7 discharges most unsecured balances for the filer. It also may require the filer to give up certain nonexempt personal property for liquidation, after which the proceeds would be distributed to creditors under the supervision of the bankruptcy court. Before moving forward with this process, the filer will have to complete the means test and complete required credit counseling.
Chapter 7 bankruptcy can offer a person overwhelmed by debt a way to deal with certain types of balances once and for all. It is not necessarily the right choice for everyone, which is why careful consideration should be given to this choice before proceeding. For quite a few individuals in Tennessee, bankruptcy protection is the optimal way to secure a better financial future.