In Tennessee, one of the most difficult types of debt to carry is medical debt. Most people do not have a choice about incurring this debt as it arises from unplanned medical issues. Nearly a third of American workers owe some sort of medical debt, and half of them have defaulted on it.
For Tennessee residents who file for bankruptcy, new research suggests that they may not have to worry as much that their bankruptcy will cost them their job or keep them from getting one in the future. This goes against many long-held beliefs that bankruptcy is a black mark on one's record that affects future employment prospects.
Tennessee residents may feel as if their debt payments are a burden that they will never be rid of. However, there may be strategies that a person can use to pay off creditors in a timely manner. For instance, an individual could choose to use the debt snowball method to pay down his or her existing balances. Those who choose to use that strategy will put any disposable income that they have toward their smallest balances.
Homeowners in Tennessee might be allowed to refinance their mortgages after emerging from Chapter 7 or 13 bankruptcy. This assumes that those who file for Chapter 7 bankruptcy are allowed to keep their home during the liquidation process. The type of bankruptcy that a person files for as well as the type of loan a person has could determine when it could be possible to refinance an existing mortgage.
Americans who are struggling to pay down debt may feel as if they will never be financially secure enough to retire. For some Tennessee residents, their relationships with debt begin when they decide to finance their college education with student loans. Individuals may also grapple with credit card debt, auto loans and mortgages throughout the course of their adult lives. Credit card balances may be the most difficult to pay off because they have interest rates of 20% or more.
Polls reveal that health care is the issue that voters in Tennessee and around the country care about the most, so it is not surprising that the cost of medical treatment in the United States was discussed at length during the Jan. 14 Democratic presidential debate. During the debate, Senator Bernie Sanders claimed that about 500,000 Americans file a personal bankruptcy each year because of overwhelming doctor or hospital bills. Data from the Consumer Bankruptcy Project backs up this statement.
Whether a Tennessee debtor is trying to file for Chapter 7 or Chapter 13 bankruptcy, it is important to be cognizant of the means test and how it can impact a case. Financial challenges can happen to anyone and the individual circumstances such as the person's employment situation, what assets they have and their income will be considered when determining if it is possible to file and what chapter would be most effective. The means test is a critical part of any case.
Financial instability and insurmountable debt can be difficult problems at any point in the year. However, over the holidays Tennessee residents may spend more money than they intend to when they buy gifts for their loved ones, meals for their families and travel to see the people that mean the most to them. It can be hard to dig out from under the weight of burdensome debt and for some the problem of getting spending and saving under control can last the entire calendar year.
Business bankruptcy is a valuable resource for struggling businesses. Just as is true of personal bankruptcy protections, there are different business bankruptcy options available to help struggling businesses depending on their situation, circumstances, needs and goals for the process.
Research shows that 137 million Americans are facing medical debt leading to financial hardship. In fact, overwhelming medical bills are the number one reason Americans consider filing for bankruptcy or raiding their retirement funds. Because of this painful reality, it is essential for individuals facing significant medical bills to understand their different options and legal protections.