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Understanding the influence debt could have on your future

Debt can come in a variety of forms, and dealing with the strain of financial hardships can be a stressful and harrowing process. If you experience similar challenges, you may be no stranger to the amount of stress overwhelming financial obligations can place on your life.

While dealing with the angst of debt can be troublesome enough as is, you might not be aware of how such issues could be affecting your future. Identifying the less apparent challenges of monetary strain could be vital to helping you prepare to take the necessary steps to protect your financial future.

No, filing for bankruptcy will not forever destroy your credit

If you are one of the many Tennessee residents who are struggling financially, your search for a solution has probably brought you here. You know a bit about bankruptcy, and you want to know more, but at the same time, numerous people have told you to avoid it at all costs as it will forever destroy your credit. So, you keep going back and forth as to whether it is something you should really look into.

There is some good news for you. Rebuilding your credit after a bankruptcy filing is possible. It takes time and hard work, but you can do it and come out the other side in a much better place -- economically speaking.

Making the difficult choice to file for bankruptcy

If you find yourself in a place where you are unable to pay your bills, you may feel overwhelmed and unsure of what to do next. Financial difficulty can arise from circumstances beyond your control, such as a medical emergency or a job loss. When you are in this position, you may not be able to find a way out without help or a way to deal with certain types of debt. 

Many Tennessee consumers choose to deal with their debt by filing for bankruptcy. This is not an easy choice to make, and it can be difficult to realize that you need help in order to improve your financial situation. Before you make any important decisions that may impact your future, it can be helpful to understand what this process entails and whether it is beneficial for your unique circumstances.

Sudden job loss can lead to various personal struggles

Job loss may not have been something that you ever thought about seriously. After all, you felt that you had a fairly secure job and may have even held it for several years. Unfortunately, like many people in Tennessee and across the country, you recently found yourself blindsided by layoffs and other events that suddenly left you without employment and income.

This time can certainly feel like a rollercoaster. You may feel emotionally distraught over this turn of events and wonder how you will move forward. You likely have bills, household needs and family obligations to handle, and without a steady stream of income, you may feel overwhelmed.

Why settling your credit card debt may not be the right choice

Owing a significant amount of credit card debt can be frustrating and overwhelming for a Tennessee consumer. It's stressful to know that you cannot make even a minimum payment or ever get ahead on what you owe. When you are also experiencing calls from debt collectors and facing things such as wage garnishment, you are probably going to be looking for a way out, fast.

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.

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Nashville, TN 37212

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