Bankruptcy often happens during one of life's most expensive actions: divorce. As Tennessee couples end their marriage and split assets, they may find it extremely challenging to go from two incomes to one while still trying to maintain a household. They may find themselves facing financial challenges while having to worry about common divorce legal issues such as child support and alimony. While divorce and bankruptcy at the same time may seem too overwhelming for someone to take on, a bankruptcy can provide many benefits if debt is becoming too much to bear.
Many Cleveland, Tennessee, residents have had to deal with major financial issues. Unemployment and unexpected medical bills can happen to anyone, at any time. Some people have an emergency fund to help them through these difficult times. Many, however, are not prepared to deal with these unexpected life changes. They end up with unpaid bills and mounting credit card debt. Even if they have jobs that provide regular income, paying off these debts can prove extremely difficult. As a last resort, consumers turn to bankruptcy.
A recent report released by the American Bankers Association found that American credit card usage is up. Yet, the number of people who pay off their entire balances climbed to its highest percentage on record for the last quarter of 2013. The jump, from 28.6 percent to 29 percent, has many economists optimistic that Americans are acting in a more responsible manner with their credit cards. These experts also point to a decrease in delinquencies, with only eight and a half percent of all credit card debt in the first quarter of 2014 being 90 days or more overdue.
Different options are available through the legal system to help individuals eliminate debt and enjoy a fresh financial start.