There is no cut-and-dry situation in which one form of bankruptcy is necessarily better than another. Of course, eligibility is an issue. Tennessee courts offer Chapter 7 to almost any debtor, but Chapter 13 requires some sort of income.
Before you go any further towards your goals to reduce and manage your debt, you should stop to congratulate yourself. By thinking seriously about bankruptcy or debt consolidation, you have already made a small victory that sets you apart from many Tennessee residents.
Circumstances beyond your control may have forced you into financial difficulty. Believing the circumstances to be temporary, you may have used credit cards to pay your bills, becoming saddled with intractable debt in the process. At Jimmy E. McElroy & Associates, we understand that many people in Tennessee prefer to explore options other than bankruptcy, choosing to file only as a last resort. To that end, you may have negotiated a repayment plan with your credit card company. Once you and the card issuer reached an agreement, you might have reasonably assumed that that would be the end of the harassing phone calls.
Financial stress may have you feeling hopeless about the future and your ability to live debt-free, but fortunately, there are options to help you regain control of your situation. Bankruptcy often gets a bad rap from many people in Tennessee, but the reality is that while it does affect your credit and other aspects of your financial reputation, it can also provide a fresh start as you implement changes to have more control over your finances.
You may be considering bankruptcy to break free from your debt. But you may be hesitant due to fears of what it will do to your credit score. While it is true that filing bankruptcy will impact your credit report, allowing your debt to go to collections may be even worse.