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When is Bankruptcy the Right Option for Me?

Filing-for-Bankruptcy-Murfreesboro-tennesseeThe notion of bankruptcy can be frightening at times.  Any time it appears in the news, it’s accompanied with intimidating fonts and depressing stories of another major business going under.  With that kind of social appearance, it’s no wonder that most people are so hesitant to file for bankruptcy.

 

That image, however, is far from the truth, especially on a personal or small-business financial level.

 

Rather than being a sign of failure, bankruptcy is the chance at a fresh start for people living with overwhelming debt.  When filing for bankruptcy, your home becomes instantly protected from foreclosure, as does your car and other exempt property.  While creditors would love to take your most valuable possessions from you, bankruptcy protects them, functioning under the logic, “If you take a person’s means of income away from them, how are they supposed to be able to repay their debts?”

 

When filing for bankruptcy, you could either file for Chapter 7 or Chapter 13.  Filing for Chapter 7 bankruptcy is restricted to certain income requirements, meaning it would be best to discuss your options with a bankruptcy attorney before filing.

 

Between the two methods, however, you would essentially be gaining the same outcome.  With Chapter 7, people with a lower income could undergo a shorter bankruptcy, allowing them to liquidate all of their unsecured debts, such as medical bills and credit card payments.  A Chapter 13 bankruptcy is more of a reorganization of the debt, allowing you to fit your debts into a manageable 3-5 year repayment plan, at the end of which the unsecured debts would be wiped away.

 

They both have their strengths and weaknesses.  Chapter 7 is short and cleans away all unsecured debts, but it requires you to liquidate your non-exempt property in the process, and it doesn’t do much to help with secured debt (a home can always fall back into foreclosure at the end of a Chapter 7 bankruptcy).  Chapter 13, however, is slower, being drawn out over years rather than months.  During that time, however, your home and car are protected, and you are given the reasonable chance to repay your debts.

 

Choosing between the two may be a difficult option on your own, so it may be best to go ahead and find an experienced bankruptcy attorney to answer your questions.  Our bankruptcy attorneys are legal professionals who are dedicated to guiding you seamlessly through the process of bankruptcy, and they will ensure no legal matter is accidentally forgotten.

 

Don’t risk fumbling on your attempt to become debt free, call us today and see how we can help you reclaim your financial freedom.

Call (615) 898-0607

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