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?
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.
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.
Severe money problems can happen to virtually anyone -- even people who once earned large salaries and are nationally famous. People far and wide sometimes find it necessary to file for bankruptcy protection in order to get back on solid financial footing.
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.