As you prepare to enter retirement, your plans may not include dealing with the realities of debt. Most people enter retirement with some debt they have been handling for years, only to discover that the reduced or "fixed" income of a pension, 401k or Social Security makes paying those monthly bills far more difficult than they anticipated. Adding new debt due to an unexpected medical bill can become a substantial threat to your financial stability.
If you file Chapter 7 bankruptcy in Tennessee, your assets may be seized and sold to repay a portion of your debts. To ensure that you are not left without anything or any means to rebuild, the state affords you some exemptions. In Tennessee, the homestead exemption provides you protection for your home.
Having made the decision to file for Chapter 13 bankruptcy in Nashville, you are likely to remain fairly resolute with it. After all, such a decision should not be taken lightly. While bankruptcy does offer you the advantage of halting any creditor actions from being taken against you (while also allowing you to retain some of your more important personal assets, like your home), it is not without its share of challenges and difficulties. For this reason, many of those who come to see us here at Rothschild & Ausbrooks, PLLC are often discouraged when they are told that before filing for bankruptcy, they must complete credit counseling.
If you are a longtime credit-card user in Nashville, you should have noticed a few changes in your billings as a result of the Credit Card Accountability and Disclosure Act, or Card Act, passed in 2009. No longer are you socked with substantial fees and interest-rate hikes for indiscretions such as making a late payment, going over the credit limit or carrying a balance on your card. In fact, there are several benefits to consumers from this law, many of which you may not be aware.
There is a lot of debate about what to do to help the many Americans who are drowning in student loan debt. Reports often state that this debt cannot be a discharge in bankruptcy, so people carry it, hurting their credit and growing their debt further as they go throughout their lives. Guess what, Tennessee residents may actually be able to have their student debt discharged through bankruptcy, but it can be difficult to accomplish.
While credit-card debt may once have been on top, medical debt has replaced it as the main reason that residents of Tennessee and all other states declare bankruptcy. That may or may not be news to you; it has been leading the list of bankruptcy causes for a few years now.