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Cleveland Tennessee Bankruptcy Law Blog

Help with unsecured debts through the bankruptcy process

Unfortunately, many people can end up with medical bills and credit card bills and be trapped in a vicious cycle of both. Fortunately, personal bankruptcy options can help with these forms of unsecured debt.

Both medical debt and credit card debt are considered forms of unsecured debt. As a result, these are the types of debt that are most easily addressed by the bankruptcy process. The bankruptcy process can help end harassing creditor calls by eliminating the filing party's debt and can provide help with the stress and strain associated with medical and credit card debts. In addition, once the filing party has filed for bankruptcy protection, an automatic stay provides immediately relief preventing any creditor collection actions while the bankruptcy process progresses.

How Chapter 13 bankruptcy may be able to help with foreclosure

For those facing the potential loss of a family home, it is likely all that there is on their minds. As a result, they should be familiar with as many of the legal options available to help them as possible and personal bankruptcy protection may be able to offer help in some circumstances and situations.

Chapter 13 reorganization bankruptcy is one personal bankruptcy option that may be able to help those facing the possible loss of their home. Chapter 13 bankruptcy may be able to help in a couple of ways with foreclosure concerns. First, once Chapter 13 bankruptcy protection is filed for, an automatic stay goes into effect that prevents all creditor collection actions. Secondly, the bankruptcy process may allow the filing party to include past due mortgage payments as part of their reorganization plan, providing time for them to become current on payments.

Chapter 7 bankruptcy exemptions provide important protections

Bankruptcy exemptions are critical for struggling consumers considering Chapter 7 bankruptcy as an option to enjoy debt relief. Bankruptcy exemptions protect certain types and categories of property from the bankruptcy liquidation process while the Chapter 7 bankruptcy process overall allows the filing party to enjoy debt relief and a fresh financial start.

To understand Chapter 7 bankruptcy exemptions, and their importance to a party filing for Chapter 7 bankruptcy protection or considering doing so, it is necessary to understand that Chapter 7 bankruptcy

3 money-saving tips during the holidays

Whether you are in the middle of bankruptcy or trying to avoid it, saving money during the holiday season is crucial. With the sobering thought of bankruptcy on your mind, every penny suddenly counts. If you are not careful with your holiday spending habits, you may be stuck in a mountain of debt when the New Year rolls around. 

But if you plan correctly and stay diligent, you and your wallet can make it through the winter holidays. Follow these frugal holiday guidelines to avoid financial woes

Making the best bankruptcy decision for the situation

There are different types of personal bankruptcy options available for individuals in different situations. It is helpful to understand Chapter 7 versus Chapter 13 bankruptcy options so the struggling consumer can select the best option for their situation and needs.

At the outset, the party considering bankruptcy protection should understand that both types of personal bankruptcy can provide debt relief, a debt discharge and an automatic stay immediately after filing for bankruptcy. The automatic stay prevents creditor collection actions during the bankruptcy process. The option to file for one personal bankruptcy option or the other largely rests on the income level of the filing party. If the filing party has a reliable source of income to repay their debts, or at least some of them, they may be considered a strong candidate for Chapter 13 reorganization bankruptcy.

The different ways Chapter 13 bankruptcy can help

Chapter 13 bankruptcy is a type of personal bankruptcy protections that can help with a couple of different concerns a consumer facing overwhelming debt and financial struggles may need to address. Chapter 13 bankruptcy is a reorganization bankruptcy process for those who have a reliable source of income to repay debts according to a repayment plan worked out with the bankruptcy court.

To begin with, Chapter 13 bankruptcy can help with the everyday debts that keep the filing party up at night. The bankruptcy court will help the filing party develop a repayment plan that reorganizes their debts and allows them to repay them over a period of time which is usually 3 to 5 years. Once the filing party has completed the repayment plan, they will be granted a debt discharge which amounts to a fresh financial start for the filing party.

A closer look at Chapter 7 bankruptcy protections

The importance of Chapter 7 bankruptcy exemptions cannot be overstated for individuals filing for Chapter 7 bankruptcy protection. Chapter 7 bankruptcy is referred to as a liquidation bankruptcy option, however, some categories of property may be exempted from the process.

Chapter 7 bankruptcy allows a struggling consumer to liquidate assets to repay creditors. According to bankruptcy exemption rules, not all property must be liquidated. Because bankruptcy exemptions can vary by state and be different at the local and federal level, so it is important for consumers considering filing for bankruptcy to be familiar with the bankruptcy exemption rules where they want to file for bankruptcy protection.

How to get relief from wage garnishment

Wage garnishment can add pressure and stress to a situation that is already trying. Wage garnishment can put the struggling consumer even further behind as they were attempting to get caught up on their bills and obligations.

Wage garnishment can come about after a creditor obtains a judgment against the consumer. Once the creditor has a judgment against the consumer, they may then be able to have the struggling consumer's wages garnished, compounding that individual's problems. Fortunately, personal bankruptcy options can help protect struggling consumers from wage garnishment and can provide some important and meaningful debt relief protections as well.

Foreclosure and bankruptcy; things to know

This blog recently discussed homestead protections during the bankruptcy process in Tennessee. An issue that may be of significant concern for parties facing overwhelming debt and the possible loss of their family home is the relationship between foreclosure and the bankruptcy process which is why it is important to understand.

When a homeowner has fallen behind on mortgage payments they may have many worries and concerns. The lender may begin to pursue the foreclosure process. The foreclosure process involves the creditor taking the home back, selling the home at auction and using the proceeds to repay the mortgage and any associated legal costs.

The rise of senior citizens filing for bankruptcy

There seems to be a common misconception that people will have fewer financial worries as they get older. Retirement and collecting Social Security checks at one point in time used to be a period of bliss in people's lives. Today, many seniors find themselves under massive debt where the only solution is to file for bankruptcy

One study has found senior citizens have filed for bankruptcy at much higher rates than in past decades. This is true in Tennessee and many other states around the country. It is vital for people to be aware of these newfound dangers so that they can protect themselves and their parents.