Tennessee is one of several hot spot states for tourism and is also often seen as a prime retirement location. You may be one of many who own or rent a condominium somewhere in this state. Many people love condo living because it usually means someone else is responsible for major maintenance and upkeep.
Whether you own or rent your condominium, you may have noticed a rising trend impacting condo living throughout the nation; many condominium complexes are in great need of repair and maintenance but owners lack necessary funds to complete the tasks at hand. This has resulted in serious financial crises and many vacant dwellings. A key factor in overcoming financial problems, however, is knowing ahead of time what type of debt relief options are available.
Financial problems associated with condo living
You may relate to the following types of financial problems many condominium owners throughout the nation are currently experiencing:
- In some communities, there is simply less money coming in than what it takes to cover operating costs at an average condominium complex.
- The Washington Post cited one example where a particular condo complex carried $600,000 in estimated needed repair costs but only had $400,000 available to meet the expenses.
- Administrators at another condo complex closed the swimming pool for five seasons in a row due to lack of funds to purchase chemicals, insurance or pay lifeguards.
- Builders continue to construct new condominiums in Tennessee and other states; however, many older complexes sit vacant or in disrepair due to serious financial problems.
- If you own or rent a condo, you’re likely aware that a large portion of cash reserves needed to cover operating expenses is acquired through monthly fees. In recent years, increased fees have wrought financial strain upon many condo owners, leaving them unable to make their payments.
A fluctuating housing economy may also be a key factor to your current financial problems regarding condominium living. Although some people shy away from discussions pertaining to debt relief, there are often bankruptcy options available that may help you move toward restored financial stability and may even allow you to retain ownership of your condo.
Types of bankruptcy and where to seek support
Two of the main types of bankruptcy are Chapter 7 and Chapter 13. You might consider the latter a restructuring plan as it typically involves creditors agreeing to provide reorganized payment plans while you continue to earn income and retain ownership of your assets. Chapter 7, on the other hand, involves complete liquidation of assets in order to satisfy your debts.
Many Tennessee condominium or business owners turn to attorneys well-versed in bankruptcy law to help them determine the most viable options available in their particular circumstances.