URGENT UPDATE: Due to COVID-19, We Can Now File Your Bankruptcy Over The Phone With $0 Down Options. No Office Visit Required. Call (423) 479-4188. FREE CONSULTATION. Open Monday – Friday from 8:00 AM – 5:00 PM.

Richard Banks & Associates, P.C.
free consultations
local: 423-244-0009
toll free: 866-596-8527
Practice Areas

Cleveland Tennessee Bankruptcy Law Blog

You can file for Chapter 7 bankruptcy and still keep your stuff

One of the most common concerns people have with bankruptcy is the fear that this process will cause them to lose their personal property. In reality, it is possible to benefit from the protections provided by Chapter 7 bankruptcy without losing many types of important things. Fears over losing stuff should not be what keeps from taking a step that could be important for your financial future.

Chapter 7 bankruptcy is liquidation bankruptcy. This means there will be the compulsory liquidation of some types of property to go toward repayment of your debt. The intent of bankruptcy is not to leave an applicant destitute, which is why bankruptcy law provides some exemptions. This means certain types of property will be exempt from liquidation.

Does bankruptcy hurt the economy or help it?

With the economic downturn happening now in 2020, it makes sense to be asking how your bankruptcy could negatively affect the economy. You may worry that not paying your bills is harming another business or individual or could cause a kind of chain reaction.

The good news is that consumer bankruptcy doesn't usually have negative effects on the economy unless your bankruptcy is one happening en masse with other consumers. The reason that bankruptcies are worse when they happen all at the same time is because bankruptcies reduce spending confidence. The businesses then suffer losses from fewer people buying as well as from those who have used credit and can no longer pay.

Can an employer refuse to hire you over a bankruptcy?

People do worry that a bankruptcy won't look good to others. In some ways, that may be true, but on the whole, it's understood that bankruptcy is a legal protection offered only when people truly need it.

When you're looking for a job during your bankruptcy or after you have gone through one, that shouldn't affect your job search, but the reality is that some employers may see your history and decide not to hire you. That can be upsetting, especially as you're working to get into a better financial situation.

Yes, even younger people face bankruptcy struggles

If you're young, one of the last things you would expect would be to have to go into bankruptcy. The reality is, though, that many younger individuals do end up going into bankruptcy for a variety of reasons.

Whether it's because you haven't been able to find a job in a weakened economy or you have debts that are making it hard for you to make ends meet, it's important to note that bankruptcy is one of the options that could be open to you.

Even with a poor economy, bankruptcies are down in October

Bankruptcy has long affected Americans, but there is some good news in 2020. According to a new report from Oct. 5, fewer Americans have filed for bankruptcy in 2020 than in 2019 despite the fact that there are 10.7 million fewer jobs in the country and that over a quarter of the U.S. workforce is working in their homes.

Interestingly, bankruptcies are down 27% despite the economic downturn this year has seen. Personal bankruptcies, specifically, were down by 28%, while business bankruptcies dropped by 1%.

What happens during the repossession process?

There are many unpleasant consequences that come with owing a significant amount of debt. One of these includes the efforts of debt collectors and creditors to secure payment from the consumer. This typically starts with phone calls and letters in the mail, but it can escalate to more serious efforts, such as repossession. If you are behind on your payments, you may have received notice of repossession.

Creditors do have the right to repossess assets bought on credit, but there are strict guidelines on what they can do and how they can do it. If you are facing the possibility of repossession, you probably want to know what this means for you, what to expect and what you can do to stop it. No matter how much debt you owe or how far behind you are, you still have rights.

What happens to a car lease during a Chapter 13 bankruptcy?

If you have a car that you're leasing and are planning to go through a Chapter 13 bankruptcy, you may be wondering what will happen to the least. Generally, there will be two options open to you. The first would be to return the vehicle. The second would be to continue making your payments.

Before you decide which of these is right for you, think about the positives and negatives of the decision you're going to make. For example, one positive of Chapter 13 bankruptcy is that it gives you the opportunity to pay back what you owe over time. At the same time, it allows you the opportunity to walk away from some debts, like car leases, if you don't want to continue on with them.

Bankruptcy statistics: Bankruptcies have fallen this year

Bankruptcies are sometimes seen as a last resort and something that people try to avoid at all costs. They are almost seen like an evil in this society, even though bankruptcy laws are a helpful protection for both consumers and businesses. They're actually very common.

In July, the United States Courts released information on the total number of bankruptcies in the United States this year. Personal and business bankruptcies have fallen by 11.8% between June 30, 2019, and June 30, 2020, but since the economy is in a downturn, there is expected to be a gradual uptick in filings over the following few years.

Struggling with your debt? These 3 options could help you

If you're stressed out because of your finances, you're not alone. It's hard to know how you're going to move forward when you are working fewer hours than you planned or get laid off for months on end.

The good news is that there are many different options for getting out of debt or getting yourself into a better financial position. Some possible options for handling your debts include:

  • Going through credit counseling and debt management programs: This may involve negotiating with credit card companies and creditors to ask them to lower interest rates on your debt. This should help reduce how much you'll pay each month. The goal is to not only reduce your payments but also to consolidate them into a single monthly payment that you can afford.
  • Debt settlement or negotiation that helps you lower the principal balance owed: The trouble with this is that it does require you stop paying, in most cases, so that creditors have a reason to "make a deal" with you. If you can still afford payments, then this isn't necessarily the best choice, since it will negatively impact your credit.
  • Chapter 7 or 13 bankruptcy, which help reduce or eliminate your debts: With Chapter 7 liquidation, you may have to give up some assets, but you could also walk away from the bankruptcy without any unsecured debts, so long as those debts qualify. With Chapter 13, your debts are reorganized, and you make payments for three to five years on the balance. After that, qualified debts are discharged.

If you want to save your home, try Chapter 13 bankruptcy

Many times, people begin to look into bankruptcy only when they realize that they could lose their homes. When it's only creditors calling about medical bills or credit card debts, it may not seem like there is much to lose. However, when it's your home on the line, the reality of the situation may finally set in.

The good news is that Chapter 13 bankruptcy is a good way to protect your home from foreclosure. With a Chapter 13 bankruptcy, the goal is for you to be able to pay back a portion of your debts in monthly payments. Over time, with these payments in place, you may be able to cure delinquent mortgage payments.