It is often difficult for people to ask for help when they are in a tough situation. When money is involved people can sometimes try to hide their problems instead of dealing with them. However, Tennessee residents who are struggling to pay their bills should know that help is available. People have legal options that can offer than a fresh financial start.
However, it can often be difficult for people to know when these debt relief options are right for them. Chapter 7 bankruptcy, in particular, can be a good option for many. Experts say that those experiencing financial hardships should consider Chapter 7 if they are insolvent. In other words, when a person’s debts outweigh their assets and they cannot afford to pay their debts, then Chapter 7 may be a good options.
Furthermore, experts suggest that people consider Chapter 7 bankruptcy after they have tried other methods of debt relief. If people have tried credit counseling, debt consolidation or home equity lines of credit and are still struggling to meet their financial obligations, then bankruptcy may be the answer.
Tennessee residents should know, that while Chapter 7 may seem like the right answer, people still need to qualify for the relief. Depending on the facts in each case, Chapter 7 may not be the right kind of bankruptcy for a particular situation. People should make sure they understand all their debt relief options — including Chapter 13 bankruptcy — before deciding on a particular course of action.
If Chapter 7 is the right decision, then the court will continue by liquidating assets in order to pay down the debt. However, people should know that they will not lose all their property in a Chapter 7 bankruptcy. Once the proceedings have been completed, the remaining debt will be discharged and people can start their new financial lives.
Source: Daily Finance, “How to Know When Bankruptcy Is Your Best Option,” Katherine Muniz, Jan. 26, 2014