Tennessee Has Highest Chapter 13 Bankruptcy Rate Per Capita

People throughout the country are being hit hard by the tough economy, with individuals, families, and businesses in all fifty states struggling to say current on their bills and keep their debts under control.  While bankruptcy filings are becoming more and more common in all states, Tennessee has the highest number of Chapter 13 bankruptcies per capita in than any other state in the country. 

This figure is based on the 12-month period ending June 30.   

Experts believe that the high unemployment and foreclosure rates, especially in Memphis and the broader Mid-South, have contributed to the increase in Chapter 13 filings. Furthermore, bankruptcies are increasing despite a 2005 bankruptcy law designed to make it more difficult for people to get their debts discharged in bankruptcy court.

What is Chapter 13 Bankruptcy?

Under Chapter 13 bankruptcy, a person with a regular, stable income can consolidate their unsecured debt into a lump sum. Over the next three to five years, the debtor (the person applying for bankruptcy protection), makes monthly payments towards paying off their debt under court supervision.  As long as a debtor continues to pay off his or her debts, he or she can no longer be harassed by creditors or subjected to any of the other pitfalls associated with having unpaid debts.

Contact a Bankruptcy Lawyer

If you are struggling with insurmountable debt, Chapter 13 may be a good option for you. A knowledgeable bankruptcy attorney can review your current financial situation and advise you of your best options.

If you are interested in learning more about Chapter 13 bankruptcy or just your bankruptcy options in general, click here to find a bankruptcy attorney near you .