Even responsible people sometimes end up in very difficult financial situations. Many residents of the area each year, for instance, find themselves struggling financially because of unexpected medical bills or other unanticipated expenses.
Getting in touch with a Bankruptcy Law Attorney in Bristol TN can end up being the best way to respond when such challenges arise. Visit Deangreer.com or a similar site and it will become clear that bankruptcy can easily be an option worth considering.
A Very Brief History of Bankruptcy in the U.S.
Early in the history of the U.S., the individual states were mostly left to their own devices when it came to making laws regarding the treatment of insolvent individuals. A number of states regularly imprisoned debtors who were unable to keep up with their obligations, an approach that rarely worked out well for anyone involved.
In 1841, largely in reaction to a financial scare that swept the country several years earlier, Congress finally decided to utilize a power granted to it in the Constitution. The law that resulted regularized bankruptcy throughout the country and formed the foundation for today’s system.
The Right Type of Bankruptcy Can Become the Best Possible Solution
Thanks to plenty of developments and refinements since, individuals have access to three distinct types of bankruptcy in the U.S. today. Two of these are much more commonly employed than the others, with the third being used mostly by corporations. In order of popularity, the three types of bankruptcy that individuals can file for are:
- Chapter 7.
- Affording qualifying debtors something very much like a clean slate, Chapter 7 bankruptcy is the most common type by far among individuals. While many types of assets can be liquidated in the course of Chapter 7, the freedom from debt that follows can make that worthwhile.
- Chapter 13.
- The so-called “wage-earner’s bankruptcy” described under Chapter 13 of the associated code often makes sense for debtors who are still earning significant amounts of income.
- Chapter 11.
- Designed to accommodate especially complex financial situations, Chapter 11 is available to individuals but most often utilized by incorporated businesses.
Contacting a Bankruptcy Law Attorney in Bristol TN will normally make it clear which of these options might be most appropriate in a particular case. Although it is always a significant step, filing for bankruptcy sometimes proves to be the best way to address serious financial problems. Visit us for more information.
