We all know in cities like Nashville and most of the U.S., a car is essential to anyone who needs to work. Lenders prey on this need, based on the premise that, "You can sleep in your car, but you can't drive your house to work."
The real estate bubble, and the resulting mortgage crisis and financial crash that followed, was driven, to a great extent, by lending institutions that needed product to sell. With the fail of interest rates on investments like Treasury bonds, investors worldwide needed somewhere to put their money that would return a higher interest rate.
As the economy improves, the bankruptcy rate has inched downwards, even in states like Tennessee, where the number of bankruptcy filings dropped 7 percent in 2014. The good news is mixed, however, as Tennessee still ranked first in the nation for bankruptcy filings.
Last time, we discussed how the "undue hardship" standard for discharging student loans in bankruptcy is difficult for many borrowers to meet. While you may not be able to discharge student loan debt in a bankruptcy, a bankruptcy may still provide help for your dire financial situation.
The short answer. Yes.
Bankruptcy has many causes. You may become divorced and suddenly be challenged to maintain a family home and other expenses that overwhelm your budget. An accident that damages your ability to work and earn an income can leave you unable to pay many existing bills.
Tennessee homeowners who have fallen to difficult times may be struggling to make regular mortgage payments. If the circumstances are anticipated to be temporary in nature, there may be ways to remedy the situation. Homeowners may benefit from consulting with an experienced foreclosure attorney to assist them in negotiating with their loan servicer.