You may be trying to debate between Chapter 13 and Chapter 7 bankruptcy in Tennessee. While both have a lot to offer you, below are a few reasons why you may want to use Chapter 13, as it could be the best in your situation. Please note that all situations are different, so this is a case-by-case call.

First, you may be in danger of losing your home through foreclosure. While any bankruptcy will put a temporary stay on the foreclosure, Chapter 13 can actually permanently stop the proceedings. It restructures your finances so that you can afford your debt and keep the house.

Similarly, you could be in danger of losing your car if you’ve missed payments and the bank is going to take it back. Just like it does with your mortgage, Chapter 13 could make it possible to keep the vehicle. This, in turn, may allow you to keep your job and retain your income stream.

Additionally, you may not want to erase your debt entirely. You probably took out loans with the intention of paying them back, and you’d still like to do it. You just need a new payment plan that is affordable. Chapter 13 allows this plan to be created so you can repay what is owed.

Finally, some of your debts may not qualify for Chapter 7 bankruptcy, so they would remain, but they may qualify for Chapter 13, allowing you to really address all of your financial hurdles.

As you decide which type of filing to use, be sure that you carefully go over all of the ways in which they can help and compare them to your specific needs.

Source: FindLaw, “Chapter 13 vs. Chapter 7 Bankruptcy,” accessed June 04, 2015