You've been working hard, but no matter what you do, it seems like you're never able to catch up on your bills. You're behind on rent, the electric bill, your car insurance and other bills that you have to pay to keep all the things you need.
Whether it is because the economy is depressed or because you've lost your job, dealing with financial insecurity is frustrating and can have a serious effect on your life. You may have creditors and collections agencies calling at all hours. You may be worried about making ends meet and missing pay dates on important bills.
Chapter 7 bankruptcies can be great for those who are in debt and who have no disposable income to pay down what they owe. Some people worry about filing for this form of bankruptcy due to the belief that it may leave them with nothing. However, despite the fact that assets may be liquidated during a Chapter 7 bankruptcy, there are actually many exemptions.
When you were trying to check out at the grocery store, you were embarrassed to have your card say it didn't have enough money to pay for your purchase. You had just been paid that day, and you should have had enough. Unfortunately, everything else you owed had come out, too. When you were able to check your accounts, you found you'd actually overdrafted already.
Chapter 7 bankruptcy might seem to some like a curse, but the reality is that it's an amazingly beneficial way to get out of debt fast if you meet the requirements to file. Chapter 7 bankruptcy got a bad name because of its liquidation aspect. Liquidation bankruptcy can ask that you give up some of your assets. Those assets are then sold to try to pay back your creditors.
One of the long-standing rules of bankruptcy law is that the automatic stay prevents creditors from taking steps to enforce the debts owed to them. In other words, they must do nothing once the debtor files for bankruptcy. However, doing nothing can also get a creditor in trouble in Tennessee if they have already begun a collection action before the bankruptcy was filed and they take no steps to halt the collection action.
Many consumers in Tennessee and throughout the country find themselves overwhelmed by their mounting financial obligations. Whether it is due to credit card usage, predatory payday or auto title loans, medical bills, or an unexpected job loss, some people may wonder what forms of debt relief might be available.
Many people in Tennessee have student loan debt that they cannot afford to pay back. On Jan. 7, a bankruptcy judge ruled that a former law student with over $220,000 in unpaid student loan debt could have his debt discharged. The 46-year-old lawyer was a 2004 graduate of Cardozo Law School in New York, and he represented himself in court.
The single word answer to this question is, "yes." However, there is much more to be said and many more complexities regarding this subject. It is not impossible to obtain a discharge of a student loan within a bankruptcy, but it is certainly no easy task. It is also not a task that is often successfully completed.
For individuals facing crushing debt, every day can be stressful. Personal bankruptcy options exist to help struggling consumers facing the weight and stress of overwhelming debt. It provides layers of protection struggling consumers considering filing for bankruptcy should be familiar with, including bankruptcy exemptions.