Many people view bankruptcy as a financial blemish, but the truth is bankruptcy offers a path back to financial security. That path may not be easy, but it’s an attractive alternative when creditors and debt collectors are breathing down your neck.
Bankruptcy comes in several forms. The most common options are Chapter 7, Chapter 11, or Chapter 13, and each one provides debt relief. However, the terms of each agreement vary and have different benefits and drawbacks. A bankruptcy attorney in Nashville can advise you and help find the path that meets your specific needs.
Chapter 7 bankruptcy, also known as straight bankruptcy, is the last resort. A bankruptcy attorney in Nashville will only recommend it after you’ve exhausted your other options. The process puts a temporary hold on your debt but often requires losing some possessions.
Typically, Chapter 7 bankruptcy takes three to six months to complete. A court will evaluate your financial strength based on the means test to see if you’re eligible. The test measures your income, assets, and net worth. If you qualify, you must liquidate some assets to pay creditors and debt collectors.
Chapter 11 bankruptcy is for limited liability corporations, with companies, such as Enron, General Motors, and United Airlines, using it to declare bankruptcy. The process is highly complex and involves restructuring the organization to resolve debts. Most companies have to downsize or liquidate assets.
Chapter 13 bankruptcy is a leading alternative to Chapter 7 bankruptcy because it allows you to keep most of your assets. The courts reserve it for individuals that earn an income. Chapter 13 bankruptcy requires you to consolidate your debts into a single monthly repayment plan lasting three to five years.
There is no ideal time to file for bankruptcy, but there may be warning signs. If your current debt obligations feel insurmountable, you should consider talking to a bankruptcy attorney in Nashville. Bankruptcy is a viable solution if two or more of the following scenarios apply to you:
Admitting you need financial help is difficult. Bankruptcy is there to provide a light at the end of the tunnel. No matter which option you choose, you can discharge your debts and get a fresh financial start.
While your credit score will take a hit and potentially lose assets, the long-term gains are worth it. At Jungers Law Firm, our bankruptcy attorneys in Nashville can make sure you receive a repayment plan that lets you come out stronger on the other side. Discover the difference a bankruptcy attorney can make for you. Schedule a consultation today.