Overwhelming debt can come with many consequences that may affect both you and your Tennessee family. From the calls from debt collectors to falling farther behind on your monthly payments, you may not be sure if you will ever be able to catch up. Even thought you may feel hopeless about your financial situation, you may not be certain that bankruptcy is the right choice for you.
Making the decision to file for consumer bankruptcy is a complex choice. You know this will impact your credit and your financial opportunities in the immediate future, but this may be your best chance to get ahead and reclaim control. If you are unsure of how to proceed, it may be helpful for you to learn more about bankruptcy and the benefits it may provide you.
The optimal way forward
There is no one-size-fits-all solution to financial trouble. While bankruptcy could be the most ideal way to deal with your debt, it is not the only solution. It is in your interests to explore all options before moving forward. Before you make any important decisions regarding your financial future, you may want to consider the following:
- A bankruptcy filing will stay on your credit for years. Chapter 7 will stay on your credit for 10 years, and Chapter 13 will stay for 10.
- Before you file, it may be helpful to speak with creditors about negotiating your balance down or reducing the payment amount.
- The right chapter of bankruptcy for you depends on the types of debt you owe, your income and other factors.
Bankruptcy may be the most practical way for you to save your home, get creditors off your back and secure a better financial future. It also allows you a way to address some types of debt in an organized and efficient manner. If you are struggling with keeping up each month and your balances keep going up, this may be a beneficial consideration.
Every case is different
Your financial situation is unique. An assessment of the specific types of debt you own, your income and your long-term objectives can provide you with a clear picture of what you can do to reclaim a better and stronger financial future. It is possible the ideal way for you to do that is through either Chapter 7 or Chapter 13 bankruptcy.