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Cleveland Tennessee Bankruptcy Law Blog

Tennessee leads nation in bankruptcies due to medical debt

Bankruptcy protections can help consumers struggling with medical debt. Tennessee is the leading state in the nation for medical bankruptcies. The director of a Tennessee nonprofit that helps Tennessee families with health care issues noted that some families are having to make the difficult choice between food and medicine. He added that 70% of Tennesseans have some type of medical debt. A new initiative was recently started in Tennessee to help those struggling with crippling medical debt. Overall, the state leads the nation in medical bankruptcies.

Bankruptcy options can help struggling consumers with various forms of debt, including medical debt. Personal bankruptcy protection can help those with overwhelming debt, including medical debt, address their concerns and enjoy debt relief. There are two main types of personal bankruptcy protection available to struggling consumers including Chapter 7 liquidation bankruptcy protection and Chapter 13 reorganization bankruptcy protection.

Bankruptcy tips for the self-employed

Experiencing problems with debt and creditors is challenging enough, but things can become more complicated when you are self-employed. In fact, your employment arrangement may have contributed to the situation, as being your own boss can be not as predictable and stable as being a salaried employee.

Filing for bankruptcy is still an available option, but there will be special considerations to ensure the process goes correctly and smoothly. Follow these tips to help you navigate bankruptcy when self-employment is a factor.

The benefits of Chapter 13 personal bankruptcy protection

Chapter 13 bankruptcy is one of the two major types of personal bankruptcy protection. It involves working with the bankruptcy court to develop a repayment plan that allows the filing party to repay their debts over a period of time which is typically three to five years. At the end of the process, they can enjoy debt relief.

Chapter 13 bankruptcy is generally available to those that have debt they are unable to manage but also have a reliable source of income with which they can repay their debts if given the opportunity to reorganize their debts and repay them over time. Once the filing party has filed for personal bankruptcy protection, and automatic stay will stop all creditor collection actions while the bankruptcy process progresses. This allows the filing party the time to develop their debt reorganization plan.

The differences between different types of personal bankruptcy

There are two primary types of bankruptcy protection that fall under the umbrella of personal bankruptcy protection. Both provide an opportunity for debt relief and can help the filing party pursue greater financial freedom so those considering personal bankruptcy protection should be familiar with their options.

In addition to the similarity that they both provide important debt relief, there are some differences, however, in how the different types of personal bankruptcy options operate and how to qualify for one over the other. The availability of different types of bankruptcy options is dependent on the income of the filing party and also their needs and goals for the process.

Bankruptcies down but Tennessee remains number two

Bankruptcy protections can protect consumers and businesses alike, which is why it pays to be familiar with bankruptcy options. According to the American bankruptcy institute, commercial bankruptcies increased last month while personal bankruptcies declined. Total bankruptcy filings dropped by 1 percent while consumer bankruptcy filings dropped by 2 percent. Commercial bankruptcy filings were up 10 percent last month.

Though bankruptcy numbers may have dropped, Tennessee remained number 2 in the nation for per capital filings. Bankruptcy protections can provide relief for both struggling consumers and struggling businesses. Thought the exact bankruptcy options differ, the nature and type of relief they provide are similar, as is the process in many ways. It is important to note that there are liquidation bankruptcy options and reorganization bankruptcy options available to both struggling consumers and struggling businesses.

How to get through the bankruptcy process

The most important thing for Tennesseans filing for, or considering, personal bankruptcy protection to understand is how the process works. Personal bankruptcy options exist to help struggling consumers who should be as familiar with their options to help them enjoy a fresh financial start as possible.

There are two broad categories of personal bankruptcy protection. It is important for parties considering filing for bankruptcy to note that they may be able to start out with one type of personal bankruptcy protection that makes sense for their situation at the time but can also change to a different type of bankruptcy that makes sense for their changing situation if they need to. Personal bankruptcy is a resource to help struggling consumers get back on their feet.

Dispelling 3 common bankruptcy myths

Dealing with a personal financial crisis is never simple or pleasant. Thankfully, filing bankruptcy is one way out of the hole. But you may have some inaccurate or harmful beliefs about bankruptcy without even knowing it. 

Due to the complications of bankruptcy and the societal stigma surrounding it, it is easy to be scared or uncertain about the process. That is why it is necessary to dispel common bankruptcy myths.

Bankruptcy may be able to help prevent or stop wage garnishment

Bankruptcy can help with a variety of concerns struggling consumers may have including. One of those concerns is wage garnishment which, in addition to being stressful, can make it more difficult for struggling consumers to repay their debts as they work towards paying their bills and reducing what they owe.

It is important for struggling consumers to be familiar with the resources available to help them avoid wage garnishment or stop wage garnishment. One of the most important aspects of the personal bankruptcy process for those considering filing for bankruptcy to be familiar with is that once the filing party files for bankruptcy protection, an automatic stay goes into effect which prevents creditor collection actions while the bankruptcy process progresses. This is a valuable protection for struggling consumers.

What is the difference between exempt and non-exempt property?

If you have considered filing for Chapter 7 bankruptcy, you may have heard about bankruptcy exemptions and wondered what they refer to. Bankruptcy exemptions are a way of protecting property during the Chapter 7 bankruptcy process and allowing the filing party to keep some of their property following the bankruptcy process.

There are certain specific categories of exempt property that are subject to limits filing parties should be aware of. Other property that falls outside of those categories and limits is not considered exempt. Additionally, a wild card exemption can be something to be familiar with which can protect property that does not fit into one of the exemption categories or has reached the limit for the category. Chapter 7 bankruptcy allows the filing party to liquidate their non-exempt assets to repay creditors.

Personal bankruptcy help for struggling consumers

Personal bankruptcy protections can help in many different ways. Personal bankruptcy options can help struggling consumers with medical debt or struggling homeowners with foreclosure concerns. Personal bankruptcy options can help with a variety of the most pressing concerns struggling consumers likely have and need help with.

Personal bankruptcy protections are designed to help struggling consumers get back on their feet and enjoy debt relief. Different protections are built into the process that struggling consumers should be familiar with. Chapter 7 bankruptcy protections allow the struggling consumer to liquidate assets to repay creditors. Chapter 13 bankruptcy allows the struggling consumer to reorganize their debt to enjoy debt relief. These options help borrowers and consumers in different situations and with different goals, however, both options offer the promise of debt relief.