No one takes on debt thinking that they'll be unable to pay it. Whether debt is accumulated because of a medical emergency that is out of their control or because they have enough of an income to justify it, most people have a plan for paying it back. Even if they pay just a small amount monthly, they make ends meet.
In the United States, bankruptcy is designed to help those who cannot pay their debts. It helps them start fresh, either through liquidating their assets or by creating a repayment plan that allows them to pay what they owe over time.
Going into bankruptcy can be a tough decision, even if you've been struggling with debt for a while. According to the U.S. Bankruptcy Court in the Eastern District of Tennessee, Chattanooga, Greenville and Knoxville had a total of 594 bankruptcy filings in May, 2020.
Bankruptcy doesn't have to be something that scares you. It's designed to help you get out of debt and to minimize the impact of those debts on your life.
Bankruptcy is the last thing on most people's minds, even when they're struggling with debt. The reality is that bankruptcy is seen as a kind of last-ditch effort to get out of financial trouble, even though the truth is that it can be an excellent way to stop collections and to get back on track financially even before it's the only option left.
You want to resolve all of your debt because you're tired of feeling like you're treading water. Nothing, to you, is worse than not being able to pay your bills on time. You just want to be in a better financial position.
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.