When Tennessee residents need financial relief, they will often turn to the bankruptcy court. Through a bankruptcy people can get some or all of their debts discharged. While a bankruptcy can effect a person’s credit score, it frees the person from creditor harassment, crippling debt and allows them a fresh financial start. However, many people may not know that there are many different forms of bankruptcy. Furthermore, people may not know that they need to qualify for a particular type of bankruptcy before being eligible for relief.

One common form of bankruptcy is Chapter 13. There are many reasons why a Chapter 13 might be the best choice for a particular Tennessee debtor; however, specific legal advice — which this post cannot give — is necessary to determine if it is right for a particular situation. Generally, people file for Chapter 13 when they have assets they want to keep or if they do not qualify for Chapter 7.

Again, in order to file for Chapter 13 bankruptcy, you must qualify. According to the United States Bankruptcy Courts, the amount of debt you have is used to determine your eligibility for Chapter 13. A person is eligible if the person’s secured debt does not exceed $1,149,525 and a person’s unsecured debt does not exceed $383,175. Furthermore, you must have completed approved credit counseling within 180 days of filing. Additionally, you will not be eligible for Chapter 13 bankruptcy relief if you have been dismissed from another bankruptcy petition within 180 days of your filing for failing to appear or follow court orders.

Tennessee debtors have many options when it comes to bankruptcy. It is important that they speak with an attorney to determine which option will fit their situation the best.