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Get A Fresh Start Through Bankruptcy

When you should not file for bankruptcy

On Behalf of | Nov 23, 2018 | What Bankruptcy Can Do |

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.

No matter how effective bankruptcy might be for your debts, it is not always the best path. At Jimmy E. McElroy & Associates, we try to help people find the way out of their financial troubles, even if that means suggesting other methods.

One reason you would probably not want to file for Chapter 7 or 13 is simply that either you or your debts would not meet the requirements for eligibility. This is not a concern for most debtors, but there are exceptions. Most student debts, for example, would probably not be considered for deferment. Another concern could be the presence of a recent bankruptcy on your record — this would adversely affect your filing in most situations.

Another possible scenario in which you might want to avoid bankruptcy would be if your debts were low. Higher liabilities, on the other hand, would often accrue exorbitant levels of interest over the term of the loan. You may even have to acquiesce to the repossession of your property. Essentially, without court intervention, you might have to pay high bills for many years — essentially throwing money away.

Your debt situation is unique, so consider all of the angles. This analysis often helps you attain the highest level of financial health possible. Please read more by navigating to our main website.