Middle Tennessee Bankruptcy Blog

Tennesseans currently wading through a sea of debt know all too well that recovering from this financial hit can take a considerable amount of time and effort. Not only does a money issue create immediate complications; it can linger and worsen if unaddressed. Although each situation can be unique, a common question surfaces during this process: what are the main differences between Chapter 7 and Chapter 13? 

Pocket Sense provides an accessible rundown of Chapter 7 bankruptcy and Chapter 13 bankruptcy, explaining that these two routes are the most commonly used among debtors across the nation. The main difference between these two plans lies in the details; while Chapter 13 cancels only the debts that a consumer cannot pay back within a three- to five-year timeframe, Chapter 7 has the ability to cancel the large majority (if not all) of a consumer's unsecured debts. Debtors must meet eligibility requirements in order to move forward with either plan. As Pocket Sense describes, Chapter 7 bankruptcy requires debtors to complete a Chapter 7 test. Chapter 13 places more focus on one's unsecured and secured debts. 

Most adults in Tennessee have faced financial challenges at some point in their lives. Some have been able to quickly rectify their situations by adjusting their spending habits. If you're currently in the midst of a serious financial crisis, you likely already know that things aren't always that simple. Sometimes, no amount of spending adjustment is enough to overcome major debt.  

The good news is that there are often bankruptcy options available for people in such situations. If you're considering filing for debt relief, there are several things you should know, including the basic differences between Chapter 7 and Chapter 13, so that you can make informed decisions and choose a course of action that best fits your immediate financial needs and long-term goals. 

With the endless stream of weekly deals and the perfect products, overly frequent shopping can be all too tempting. While retail therapy can be cathartic to some degree, there can be too much of a good thing. Some Tennesseans struggle with crippling credit card debt as a result of this habit. Fortunately, there are some steps one can take to bring financial balance back to life again.

Money magazine recognizes the common problem of excessive spending habits, and how they affect a great number of Americans today. Referring to experts to show that shopping addictions are a real problem, Money continues by noting the multifaceted concerns a shopping habit can expose. For instance, not only can a shopping addiction inflict damage on one's wallet; it can also come with serious psychological repercussions. Consumers often display signs of anger, anxiety or regret after making a big spend.

If you’re mired in an excessive amount of credit card debt in Tennessee, you might feel like there’s no light at the end of the tunnel. However, there are steps you can take to manage your credit card debt and begin rebuilding your finances once again. The Balance offers the following tips to help you get a handle on your financial future once and for all.

1. Make a List