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.
To many Tennessee residents, bankruptcy is a huge financial wake-up call. The extreme humiliation, creditor harassment and drastically reduced credit score that goes along with it is typically enough for someone to take steps to prevent it from happening again. However, some people don't learn from their financial mistakes the first time around. What happens when the debt piles up again just a few years later? Is another bankruptcy possible?
Even poorly executed business deals that were made decades ago can provide legal problems for former business owners. This was the case for William and Patricia Millard, who recently filed for personal bankruptcy after finding out they owed unpaid interest and taxes on the sale of their business. William Millard is the founder of the ComputerLand retail chain.
Upwards of 20 percent of the population in the United States has experienced difficulty finding full-time work during the past five years. Being unemployed or only getting part-time employment has left many families struggling to make ends meet. Some people have filed for bankruptcy, moved in with relatives following foreclosure or cut unnecessary expenses to survive tough times.
During these difficult economic times, many people in Cleveland, Tennessee, have found themselves facing serious financial challenges, up to and including foreclosure. Filing for Chapter 13 bankruptcy can provide some relief from the pressure of creditors and may even buy homeowners the time needed to keep them in their homes.
Circumstances outside of an individual's control can often lead to financial struggles. Combined with poor money management, it can be a recipe for difficulties that might lead to things like foreclosure. Bankruptcy can be a way for Tennessee residents to hit reset so that an individual can adopt new ways and recover their financial future.
In the United States, deployed military service members are entitled to certain rights with regard to secured and unsecured debt. Under the Servicemembers Civil Relief Act, deployed soldiers are entitled to a reduced credit card debt interest rate during deployment, and deployed military personnel cannot be foreclosed on for a missed mortgage payment.
When planning for retirement, no one anticipates the foreclosure of their home. In a recent study, one and a half million Americans over the age of 50 has lost their home to foreclosure between 2007 and 2011. Of those Americans, the highest foreclosure rate was for homeowners over the age of 75. Not only does this put a dent in retirement plans, but it can leave foreclosed upon homeowners struggling and looking for security into old age.
For most consumers, overwhelming debt is usually the compounding of denial, credit card use, and an unexpected event that leaves them crippled. With the looming national debt crisis, the collapse of the mortgage market, and the widespread economic downturn, it is time to face reality and take hold of your finances. An honest assessment of your debt can help you regain financial stability and secure long-term independence from your creditors.
When considering bankruptcy, remember that you should work directly with an experienced advocate who can review your income and assets and help you decide if filing is the right option for you. According to recent reports, there has been a rise in complaints against non-lawyers preparing fee-based bankruptcy documents in Tennessee and nationwide.