As a Tennessee resident who is grappling with increasingly overwhelming medical, credit card or other debt, you may be weighing your options and trying to determine whether filing for bankruptcy could potentially give you the fresh start you desire. You may, too, recognize the terms “Chapter 7” and “Chapter 13,” but you may not fully understand the distinctions between the two main types of consumer bankruptcies or know which type may be more appropriate for your circumstances.
You are probably not excited at the prospect of filing for bankruptcy. There are often some big changes you could face with this type of financial relief; it just happens to be one of the most advantageous strategies available for people suffering from massive debt. In fact, once you look at all of your options, you might decide that it is the best management option available either in or out of the Tennessee legal system.
When you file for Chapter 13 bankruptcy in Tennessee, you must agree to a repayment plan. This plan outlines how much you will pay back each creditor you have. It is your obligation to repay your debts and stick to the plan as part of your bankruptcy agreement. If you complete the plan, the court clears any remaining debt, and you get a fresh start. However, sometimes things do not go the way you want. If you end up unable to fulfill your obligations, the U.S. Courts explain you could file for a hardship discharge.
Creditors in Tennessee can resort to bullying tactics in trying to collect on a debt that you owe once you fall behind on your bills. We at Jimmy E. McElroy & Associates understand the fear that clenches in your stomach when you hear the phone ring and know that it is another debt collector calling to harass you, as well as the paralyzing anxiety that prevents you from going to the mailbox only to find more letters and notices demanding that you pay money that you do not have.
If you have made the decision to file Chapter 7 or 13 bankruptcy, you will be attending the 341 meeting.