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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.

Deciding between Chapter 7 and Chapter 13

Is debt overwhelming you? Are creditors calling you at all hours and demanding payment? Are you unsure of how you will ever catch back up? If so, you may know that a good option for you is to file for bankruptcy. This is not always an easy decision to make, but it can allow you to seek a better financial future.

After you have made this choice, you will then have to decide which chapter of bankruptcy is best for you. The available choices for consumers are Chapter 7 and Chapter 13. You may find it helpful to learn more about both of these options and determine which one is right for your situation. It will also be important for you to learn about eligibility requirements and how to move forward with the application process.

Plan now to avoid too much debt due to holiday spending

Believe it or not, the holidays are fast approaching. Before you know it, you will have a list of things to buy, parties to attend and holiday baking to do. Part of the holiday season is buying gifts, and for many people, this means overspending. If you are like most people in Tennessee, you will use your credit card for this.

Consumers often use their credit cards for holiday spending, daily needs and even as sort of an emergency fund. Many people carry balances from one month to the next, and in some cases, these balances can quickly grow out of control. Accumulating interest, minimum payments and other circumstances can lead to a precarious financial situation and more credit card debt than a consumer may be able to handle on his or her own.

The means test: What to expect and why it matters

It's not easy to make the choice to file for bankruptcy. If you are considering this step, you are probably in a precarious financial situation, unsure of how you can pay your debts and ever get ahead. Thankfully, bankruptcy can offer you a way out and allow you to pursue a better and stronger financial future.

There is a lot more involved with filing for bankruptcy than just submitting the paperwork. Not everyone who wants to file is eligible, and there are different types of bankruptcy available to consumers. One of the first steps you will have to take is to complete the means test, the results of which will make it clear which is the best way forward. It may help you learn more about what to expect from this test.

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Nashville, TN 37212

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