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Middle Tennessee Bankruptcy Blog

These 3 issues often precede bankruptcy

You might be one of the lucky people in Tennessee who happens to be a financial wizard. Then again, you have a greater chance of being like the majority of others who know enough about finances to make ends meet but would need additional support if a serious crisis were to arise. Personal economics typically fluctuate, and you might have several good years in a row then fall upon some tough times.

In fact, you might shift back and forth between these two financial states numerous times within the same year. It can be challenging to know whether your current money problems are minor and temporary or whether you might be in over your head and in need of filing for bankruptcy. Speaking with someone well-versed in bankruptcy issues can help you determine a best course of action in your specific circumstances.

What's the best way to deal with credit card debt?

Most Tennessee consumers carry credit cards, and you may be one of many who uses your card frequently. From groceries to emergency medical bills, most cardholders rely heavily on their cards. At the end of the month, you may be unable to pay your balance in full, instead paying a minimum payment. You may tell yourself that you will catch up later, but accumulating interest and more purchases may make that difficult to do.

You may find yourself in a position where you can no longer manage your credit card debt. There are several options for making your financial situation more manageable, and you would be wise to explore all of them before making an important decision. While your situation seems difficult now, there are ways to regain your financial stability. 

Busting Tennessee bankruptcy myths

At any given moment your personal economic status may rise and fall in time with the global, national, state and local economies. There is nothing any one person can do about an economic downturn, and that may make seeking a bankruptcy unavoidable.

Most feel hesitant to file for bankruptcy because they’ve heard many negative things about it. Most bankruptcy myths cause people to face their debts on their own, without pursuing options to retain control of their financial futures. This leads to out of control debts and an intense amount of stress. Here are a few myths that we want to dispel for you:

Determining which type of bankruptcy you should file

If you've been out of work for an extended period of time or someone in your household has a chronic health condition, this year might not be the best financial year you've ever had. And perhaps, like so many others in Tennessee, you’re considering bankruptcy.

Choosing to file bankruptcy is a tough decision with an unfair stigma attached to it. It’s not easy to realize you need help with your debts, but before you move forward you need to understand what your bankruptcy will look like. For individuals, you may file for either Chapter 7 or Chapter 13 bankruptcy but determining which type of bankruptcy best fits your needs can be challenging. The following questions will determine the proper choice.

Discharge in bankruptcy: What does it mean?

Making the choice to file for bankruptcy can be complicated. You may feel embarrassed that your financial situation has reached this point, or you may not know what to expect once you file. It can be helpful to learn more about the bankruptcy process and what happens if you need to move forward with this process.

Chapter 7 bankruptcy is a popular option because it only takes a few months to complete. It is particularly beneficial for individuals who have a significant amount of unsecured debt, such as credit card balances and medical bills. During the Chapter 7 process, there will be a discharge of certain balances. This essentially releases you from liability for those balances permanently. Creditors will not be able to continue to contact you about these debts. 

Should you seek debt relief or file for bankruptcy?

If you find yourself struggling to pay your bills, you are not alone. Studies indicate that many Americans live from paycheck to paycheck because they have too much debt and not enough income to pay down their balances. Around one in three consumers in the United States actually have delinquent debt, and they may be looking for ways to deal with this debt effectively.

Some consider debt relief as a way to get rid of their overwhelming financial woes. Debt relief companies offer different types of programs that may allow you to secure lower payments that are more manageable or get rid of balances altogether. This is an attractive option for many, but consumer bankruptcy may actually be a better choice in some situations. Before you make choices that will affect your financial future, learn about all of the drawbacks and benefits to both bankruptcy and debt relief programs.

Signs that it might be time to consider seeking debt relief

While dealing with debt can be a stressful and intimidating process, taking on some level of debt could also be a part of life. Unfortunately, what might start out as a necessary financial endeavor could develop into a growing concern over time, potentially leaving you struggling just to get by.

Debts can come in various forms and can leave you suffering a lesser quality of life for extended periods. Although there are a variety of options to help you seek relief from similar trials, knowing how to tell when your situation turns from manageable to alarming could prove challenging at times.

Considering bankruptcy? Get the facts straight

Do you owe numerous creditors in Tennessee or elsewhere a lot of money? If so, you're definitely not alone in your current financial struggle. Many people throughout the country are facing similar economic troubles. Just as life is an ever-changing experience, you can say the same about finances. There's typically a continual ebb and flow, a fluctuation, where you may be standing on solid financial ground one minute and watching the train derail the next.

Careful budgeting can often help keep financial disaster at bay. Then again, you may experience an unexpected event that topples even the best-laid plans. Bankruptcy is a valuable financial tool that can bring about immediate debt relief and help lay the groundwork for a stronger financial future. There is a stigma attached to bankruptcy, however, as well as several myths that tend to circulate about it. This is why it's important to learn the facts before you determine a best course of action in your situation.

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.

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Rothschild & Ausbrooks, PLLC
1222 16th Avenue South, Suite 12
Nashville, TN 37212

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