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Posts tagged "Chapter 13 bankruptcy"

What to do when bankruptcy affects co-signers

It's important for Tennessee residents to establish a credit history. Without a credit history, it's difficult to buy a car or house or take out a loan. That is why young adults may turn to their parents to co-sign loans so they gain experience making payments. This can be a good solution if the person has a steady job and can afford to make regular payments. However, life does not always go as expected. A person can suddenly face unemployment, divorce or any other type of emergency financial situation, causing him or her to fall behind on payments. This will then affect the co-signers, who will be harassed by creditors. How can you remedy this situation?

Do I qualify for Chapter 13 bankruptcy? I'd like to keep my home

When debt becomes too overwhelming, Tennessee consumers may turn to bankruptcy as a last resort. There are two main types of bankruptcy to choose from: Chapter 7 and Chapter 13. Many consumers prefer Chapter 7 because it completely eliminates debt and allows debt-ridden consumers to start a debt-free life quickly. However, in the process, it is possible for consumers to lose their home, vehicles and other assets. That's why many choose Chapter 13 bankruptcy. Chapter 13 works similar to a debt consolidation plan, in which consumers pay down debt through affordable monthly payments. Find out if this option is right for you and whether you qualify.

Starting over financially after Chapter 13 bankruptcy

It's rare that a Tennessee consumer would be enthusiastic about filing for bankruptcy, but when facing enormous financial challenges, it is often the only way out of debt. Although many consumers are embarrassed to talk about their bankruptcy with others, it's not the end of the world. In fact, many people buy cars, open new lines of credit and even purchase houses a few years after filing for Chapter 13 bankruptcy. Although it won't happen overnight, it could happen sooner than one might think by getting back to basics.

Debt repayment after filing for Chapter 13 bankruptcy

When a Tennessee consumer seeks debt relief, he or she may choose bankruptcy. There are two main types of bankruptcy to consider: Chapter 7 and Chapter 13. Many choose Chapter 7 because it can be quick and easy, and virtually all debts are wiped out in a matter of months. Chapter 13 bankruptcy, on the other hand, is the better option for those who want to keep their assets, show a good faith effort in repaying debt and possibly have a better credit score in a few years. However, debtors must adhere to a strict repayment plan or see their case dismissed.

Which type of bankruptcy is right for overwhelming debt?

Sometimes Tennessee residents face financial challenges, whether through a job loss, unexpected expenses or overspending. This can cause overwhelming debt, which can lead to harassing phone calls from creditors. When it becomes impossible to stay afloat financially, many consumers turn to bankruptcy for relief. There are two options to choose from: Chapter 7 bankruptcy and Chapter 13 bankruptcy. Which one is right for your situation?

How a cosigner can be affected by a loved one's bankruptcy

When someone asks their parent, grandparent or other loved one to cosign a loan for them, they oftentimes agree. Why? Because family members usually want to help each other out in time of financial need. They don't want to see their child, grandchild, niece or nephew do without a car or student loan for college. But if the person who took out the loan is unable to repay the debt and files for bankruptcy, the cosigner may be on the hook and could even face damage to his or her own credit score. So some individuals may be considering the best way for them to handle this situation.

Why it can be hard to rebuild credit after Chapter 13 bankruptcy

It can be easy for Tennessee residents to get discouraged after filing for Chapter 13 bankruptcy. Unlike a Chapter 7 bankruptcy, in which debts are wiped, Chapter 13 bankruptcy requires payment plans based on the filer's income. This may make applying for a new credit a challenge, since many credit card companies may shy away from applicants with a history of late payments and defaults.

Bankruptcies remain about the same in some areas of western TN

Different options are available through the legal system to help individuals eliminate debt and enjoy a fresh financial start.

Foreclosure on a home after Chapter 13 bankruptcy

Many Tennessee residents have faced financial hardships and have had to make some difficult decisions because of them. Filing for bankruptcy is something that should not be taken lightly, but many people have gone down that path in order to make a fresh start on their credit without considering all factors. Even after filing for Chapter 13 bankruptcy, some homeowners have had to make decisions about whether or not to keep their homes. They may become unable to keep paying on the mortgage and walk away from the home. Is this possible?

Is Chapter 13 bankruptcy an option for home equity debt?

Many Tennessee residents take out home equity loans for necessities such as home improvements, large purchases and sometimes even to pay off other debts. This may seem like a good idea but issues arise when the loan is not paid on a monthly basis. Even f the home is otherwise paid off - with no other mortgage - it may still be subject to foreclosure with a home equity line. But homeowners do have options to handle these situations.