If, like many people in Tennessee, you have a lot of debt and are feeling overwhelmed about being able to pay it all off, the concept of there being good debt probably does not make much sense. However, debt can certainly work for you when used in a responsible way.
Getting a fresh start from debt obligations is one of the top concerns voiced by our new clients. Yet a bankruptcy filing offers much more, including a host of protections.
Between monthly expenses and paying down debt, saving for a rainy day often takes a backseat for many Tennessee residents. However, having an emergency savings fund can be vitally important. If something were to happen that required immediate cash, people without emergency savings may resort to using their credit cards and incurring debt unnecessarily.
If you are hurting for money, a payday loan may seem like a quick and easy way to get some cash fast. However, these types of loans are almost never a good idea because you will likely end up paying an exorbitant amount of interest. In fact, interest rates on payday loans in Tennessee can be as high as 390 percent, according to NBC News. However, you do have other options if you need to get your hands on some money quickly without resorting to taking out a pricey loan that you likely cannot afford.
It appears as though an improving economy is leading to increased spending in Tennessee and across the country. In fact, if consumer spending continues at its current pace, credit card debt in the U.S. will hit the $1 trillion mark by the end of the year according to MarketWatch.
Unfortunately, there are many scammers out there looking to take advantage of people in order to make a quick buck. If you have student loans, the payments can be costly and it may be tempting to accept an offer of help from a company who promises to lower your payments or have your debt forgiven altogether. However, if that company requires any sort of upfront payment or charges you monthly fees, you can rest assured that it is not a legitimate company.
Like many people going through the bankruptcy process, you are likely concerned about which of your possessions and how much of your money you will be allowed to keep. If you have been awarded a recovery as the result of a personal injury claim, you may be particularly worried about whether or not you will be able to keep the funds you were compensated with. At Rothschild and Ausbrooks, PLLC, we understand that your belongings are important to you and that every penny counts when things are tight.
You may be considering Chapter 7 bankruptcy due to medical expenses, divorce, job loss, credit card debt or unforeseen emergencies. Depending on your situation it may be your best option. But before you make that decision, it helps to consider the pros and cons of filing Chapter 7.
Filing for bankruptcy is a serious, complicated process and one that is often considered quite intimidating. Because of this, myths and misinformation can form and spread quite easily.
You may be surprised to learn that in 2015, Tennessee actually had more bankruptcy filings than any other state. In fact, the number of filings in Tennessee was double the national average according to the Memphis Daily News.