Many Tennessee residents are still dealing with the devastating effects of the recent recession. People are having a hard time meeting all their financial obligations as they deal with stagnant wages and heavy debt loads. During the recession, many people had to rely on credit cards in order to meet their monthly obligations. After losing a job, having a medical emergency or needing to repay student loans, for many people credit cards were the only way to fill in the gaps.
Now that the economy has turned around, many people are left with large amounts of credit card debt. However, they may still not have a way to pay this money back. People should know that they have several options including debt settlement, repayment plans and other similar credit counseling.
But, people also have the option to file for Chapter 7 bankruptcy. A Chapter 7 bankruptcy can help Tennessee residents clear their credit card debt and many other types of consumer debt as well.
A Chapter 7 bankruptcy is also known as a liquidation bankruptcy. In a Chapter 7, the bankruptcy court will sell any non-exempt assets in order to pay back creditors. Once the assets have been sold, and the debts paid, the remaining debt is discharged. During the process, people will be free from creditor harassment and will be able to start rebuilding their financial lives.
However, people need to qualify for a Chapter 7 bankruptcy. In some cases, people may not qualify and may have to file under Chapter 13. Those struggling with debt need to explore whether they qualify for a Chapter 7 bankruptcy and whether it is the best option for their particular situation. With the right help, people can get free from under credit card debt and achieve a financial fresh start.
Source: The Motley Fool, “6 Ways to Get Credit Card Debt Help,” Sally Herigstad, May 31, 2014
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