Many Tennessee residents are facing large amounts of debt. Unemployment and rising prices have resulted in sky-high levels of credit card debt, medical debt and missed mortgage payments for many people. Sometimes the level of debt is so excessive that people turn to Chapter 13 bankruptcy to get rid of it and start anew. However, it's important to know that while bankruptcy can help with many types of debt, it can't eliminate all of them. In some cases, for example, Chapter 13 bankruptcy won't get a person off the hook for a second mortgage.
As the saying goes, there is nothing certain in life except death and taxes. Although a Chapter 13 bankruptcy filing won't necessarily kill a person, it is likely to negatively impact taxes. Tennessee residents looking to get rid of overwhelming debt may want to think twice before rushing out to file for bankruptcy. As with many things, timing is everything, so filing at the right time will reduce tax liability.
The forgiveness of debts is an age-old value, but in some spans of history, hardly anyone was allowed to walk away from a heavy debt obligation. We no longer have debtors' prison in the United States, but there was a time when we did. People in Tennessee, where the bankruptcy rate has, in some years, been the nation's highest, should be aware that debt relief is available.