Couples or individuals in Tennessee with crushing debt may want to assess their personal financial circumstances to determine if bankruptcy would be appropriate. In some cases, the circumstances are such that there is no one-size-fits-all approach to the type of bankruptcy plan they choose. In those cases, the debtor, his or her legal representation, and the court may need to work together to find a bankruptcy plan that fits.

For example, a recent case in Kansas involved an elderly couple that had few assets. Both spouses were in poor health and unable to work. Their debts were such that bankruptcy was appropriate, but a Chapter 7 bankruptcy would have wiped out their savings. Instead, they were able to arrange for a Chapter 13 replacement plan that allowed them to pay their legal fees over the length of the repayment plan, in addition to small amounts to unsecured creditors.

While this sort of plan is unusual, the bankruptcy court held that it was not contrary to the spirit of the Chapter 13 bankruptcy code. This decision allows the couple to get out from under harrowing credit card debt while also paying their mortgage and being able to manage day-to-day financial obligations.

Individuals and families who are seeking debt relief while dealing with unusual circumstances may benefit from speaking with an experienced bankruptcy attorney. The lawyer may be able to review the case and make recommendations regarding the type of bankruptcy that is appropriate. In the case of a Chapter 13 bankruptcy, an attorney may be able to review the debtor’s circumstances so that a more effective repayment plan can be negotiated and approved.