Is Chapter 7 bankruptcy the best option?
Those who are gainfully employed in Tennessee may feel financially safe and secure. Regardless of how stable a situation may seem, however, no person is immune to financial difficulties. These days, people are losing jobs while continuing to pile on debt. In a scenario such as this, it can seem like there’s no way out. Those who find themselves in this type of situation may find that they can file for Chapter 7 bankruptcy as a means of responsibly addressing unmanageable financial issues.
Chapter 7 bankruptcy is the most common type of bankruptcy filing. Also known as straight liquidation, Chapter 7 can wipe out debt and give an individual a fresh start. In a Chapter 7 bankruptcy, a court-approved trustee will examine all property, debt and assets, then sell or liquidate nonexempt property in order to pay back creditors. The end result is typically a formal discharge from the court for unsecured debt.
Property that an individual gets to keep is known as exempt property, which can vary by state. Exempt property may include retirement accounts, a motor vehicle, home equity, Social Security payments and anything an individual requires to perform his or her job. Although the court will forgive most debt at the end of a Chapter 7 filing, there are some payments the court can’t discharge. These can include most back taxes, alimony, child support and student loan debt.
It doesn’t take much for debt to snowball and become crippling. Those in Tennessee who want to break free from debts, but are not sure of their options should consult a legal representative. A knowledgeable and experienced attorney can help an individual learn more about Chapter 7 bankruptcy as well as other debt relief options so that he or she can move forward in life with renewed confidence.