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Middle Tennessee Bankruptcy Blog

Know what to expect from the bankruptcy process

Making the choice to file for bankruptcy is not easy. If you have arrived at this point, it is because you are facing difficult financial circumstances that are beyond your power to control. Whether you are facing credit card debt that you cannot pay or you had to deal with a medical emergency, you need help with your financial situation.

While filing for bankruptcy is not often a person's first choice, it is actually a practical and beneficial step for some Tennessee consumers. You have the choice of filing for Chapter 7 or Chapter 13 bankruptcy. If you have a significant amount of unsecured debt, Chapter 7 may be the most appropriate option. No matter which one is right for you, it can be helpful to learn more about what to expect from the process.

What should Gen X do about their credit card debt problem?

Many consumers in Tennessee depend on credit cards for daily purchases. They swipe their card for everything from buying groceries to paying for medical expenses, and over time, this can lead to exorbitantly high balances. It's hard to pay these off, and minimum payments don't do a lot to bring the overall balance down. This results in accumulating interest and a debt burden that can feel unmanageable.

Generation X is a demographic particularly prone to carrying significant amounts of credit card debt. This generation includes people born between the years of 1965 and 1980, and they lived through varying difficult financial events in their lifetimes, including multiple recessions, job shortages, a housing crisis and more. As a result, people in this age group may rely more heavily on credit cards and carry a more significant burden of debt.

Chapter 7: Some debts can't be discharged

Current financial and economic data shows that the country is in overall good shape. That doesn't necessarily mean that every individual Tennessee resident has full protection against financial crisis, however. In fact, you've likely encountered numerous financial challenges in the past. Perhaps, you're even facing one now that has turned into a serious problem.

There's a global economy, a national economy and there's also your own personal economy, which may greatly fluctuate, depending on various issues in your life. If you are currently struggling in such a way that warrants exploring debt relief options, there's a few things you'll want to keep in mind, especially regarding Chapter 7 bankruptcy. 

Debt for Tennessee residents often caused by these issues

Now that 2020 is underway, you might be one of many Tennessee residents who wish to carefully review your finances before filing your 2019 tax forms. It's definitely a good idea. You might also be one of many people who were hit hard this past year with increased debt. Numerous issues can spark a financial crisis, but you'll be glad to know that most financial problems are temporary.

A thorough review of your past year's spending and expenses can help you determine what exactly threw your financial train off track. As for overcoming the crisis and moving toward restored financial stability, you'll want to learn as much as you can about the debt relief options that might be available in your specific circumstances.

Will Chapter 13 bankruptcy help you keep your resolutions?

Struggles with overwhelming debt can affect every area of your life, including your relationships, your job and your physical health. If you are ready to make 2020 the year you begin your journey to financial freedom, getting out of debt is likely a high priority. One way find debt relief is through bankruptcy.

While bankruptcy provides a way to eliminate many of your debts, it can be complex and challenging to understand. The two most common forms of bankruptcy are Chapter 7 and Chapter 13. Although Chapter 7 is the most frequently used bankruptcy in the U.S., Chapter 13 may be more appropriate for your situation.

Is financial freedom a goal of yours for the coming year?

The idea of starting another year with substantial debt may not be appealing to you. Unfortunately, you have faced struggles with your financial situation for some time, and you do not see it improving any time soon. Still, one of your goals for 2020 may be to obtain a fresh financial start.

While bankruptcy isn't the only method for debt relief, if you haven't found success with getting relief in any other way it's time to consider a personal bankruptcy more seriously.  

Southerners more likely to carry significant credit card debt

The South is a place known for good cooking, generous people and warm weather. As someone who lives in Tennessee, you understand the principle of southern hospitality and helping people however and whenever you can. Unfortunately for some who live in the southern states, this may mean carrying a lot of credit card debt as well. 

You may find yourself hopelessly behind on your own credit card bills. You may not know how you will ever really catch up or how you can get your balances down to the point where debt collectors will stop calling you. If you are struggling with this particular type of financial problem, you are not alone. While it can feel overwhelming and hopeless, there could be a way out.

Taking on debt can easily cause financial problems

Debt is something that is practically unavoidable in life. Even if you do your best to handle your finances well, you may still carry a credit card balance or have loans that you have taken out for certain necessities. It can be difficult to know when you are doing well with your debt and when you might be in over your head, and in some cases, people do not find out until it is too late.

When it comes to debt, it is important to know that there are good debts and bad debts. The good debts are the sort that provide you with a benefit, such as taking out a mortgage loan for a home. Of course, even good debt can become bad debt if you are unable to make your payments.

Creditors hounding you? Immediate relief is available to you

Debt can be overwhelming. From the phone calls at all hours, the letters in the mail and the threat of losing some of your personal property, you may be under an impossible amount of stress. But you do not have to be.

You need to take steps to make the calls and harassment stop, and one of these may include filing for bankruptcy. While there is often a negative perception associated with this step, it can actually offer you immediate relief from collection efforts and debt collectors.

Can bankruptcy increase your quality of life?

Are you among the many people here in Nashville and across the country who believe that filing for bankruptcy could ruin your chances of ever receiving credit again? Do you think your credit rating will never recover?

These are definitely legitimate questions. After all, everyone cautions you not to file for bankruptcy, so there must be a good reason. Fortunately, for you and others who need some relief from overwhelming debt, bankruptcy could actually make your life better.

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Nashville, TN 37212

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