If you are one of the many people in Tennessee who has filed for debt relief via a Chapter 13 bankruptcy, you will know that this is not a quick fix to your debt problems. You are initially obligated to make monthly payments to a trustee for a minimum of 36 months and possibly for as long as 60 months. During such a long span of time, many things in your life may change and you might find yourself in a situation that makes it all but impossible for you to keep up with your bankruptcy payments.
Like many Tennessee residents, you may have fallen into personal debt from credit card use, unexpected medical expenses or job loss. When you start to search for ways to get out of debt, you may feel overwhelmed by the numerous options that are available. One such option is chapter 7 bankruptcy. Depending on the unique aspects of your financial situation, chapter 7 may be the right solution to recover from overwhelming debt.
Have you ever been to the emergency room for something like a broken bone, or have you ever had to stay in the hospital overnight because of a surgery you needed? If so, you are like many in Tennessee who find themselves dealing with expensive and often overwhelming medical bills. Even getting minor medical care can be costly, especially for those needing emergency treatment.
There are usually only two ways for individuals in Tennessee to file for bankruptcy: Chapter 7 and Chapter 13. Each involves eligibility requirements relating to the amount of debt you owe and the amount of income you bring in each month. Often, you will be eligible for either one or the other, but at Rothschild & Ausbrooks, we have seen situations in which people have qualified for both Chapter 7 and Chapter 13. If this is the case, you have a choice between the two. Each has strengths and weaknesses but, depending on your situation, Chapter 13 offers advantages that may make it more suitable.
Credit can be a great benefit, offering you easy access to funds in the event of an emergency in Nashville. Yet it also can lead to long-term financial difficulties if you are not able to manage it wisely. It is fine to use credit (even advantageous, in certain situations) as long as you remain committed to paying it back in a timely manner. Missed credit card payments are among the most common issues found on personal credit reports. Such negative marks can remain on a credit report for up to seven years. Many have come to us here at Rothschild & Ausbrooks, PLLC wondering if there is a way to get such issues resolved sooner.
Credit cards have been around for decades. In our modern economy, some businesses have made them a mandatory method of payment, in fact. A recent study showed that the average American family holds 8 cards, using them from for everything from weekly groceries to paying for medical bills. As a result, the overall amount of credit card debt in the United States is at record levels. So if you think you are alone in your credit card debt worries, rest assured, you are not. But you may be one of many people who are no longer able to manage their credit card bills or even make minimum payments.
Millions of Americans struggle to keep up with expenses accumulated from medical care, credit card bills, mortgages, car payments, loans and other expenses. If you are one of the many who are buried under a pile of debt, you may know what it feels like to be the victim of harassing phone calls from creditors and collection agencies. These agencies often call debtors all hours of the day and night in an attempt to receive a payment on the account. Surprisingly, some collectors use extreme measures to collect debt. Some have gone as far as threatening to throw people in jail, harm their pets or take their children away from the home. Under the Fair Debt Collection Practices Act, these tactics are prohibited. Yet, an automatic stay can help to ensure collection agencies and creditors are unable to contact you regarding your debt.
When faced with a significant amount of debt, you may feel trapped by your creditors. Even though debt relief options are available, you may think that they are too good to be true or that they will only further harm your financial situation. Not all debt relief solutions are created equal and some can cause more financial trouble than you already started with. It is important to understand that you can rebuild your credit, especially after using legitimate debt relief options.
After having experienced substantial financial issues and made it through bankruptcy, you undoubtedly want to make sure that you stay on the right financial track. That means using your freed-up cash flow to set yourself up for financial security, which may require taking on some new credit. Of course, the effects of your recent bankruptcy completion may have left you both elated because of the discharge or reorganization of your debt and slightly worried about your future credit.
Now that you have had your debts discharged by filing for bankruptcy in Tennessee, you probably feel as though you have had the weight of the world lifted off your shoulders. We at Rothschild & Ausbrooks believe that you should feel good about the decision you have made to wipe the slate clean and make a new financial start.