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.
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.
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.
It is not uncommon for homeowners in Tennessee to have both first mortgages and second mortgages on their homes. The presence of a second mortgage can at times leave consumers wondering about their options when they find themselves faced with serious debt problems. When contemplating filing for bankruptcy, some people may want to try and save their homes yet also want to get out from under a mound of unmanageable debt.
There often is a stigma that surrounds personal bankruptcy, in that many in Nashville may view it as simply a form of escape. Their opinion might be that those filing are looking to escape from financial responsibilities that result from frivolous (or in some cases, even unethical) decisions. Bankruptcy is indeed meant to be a tool to help those in financial distress, yet might there actually be scenarios when debtors attempt to use that tool deceitfully?
Many of the Nashville clients who come to us here at Rothschild & Ausbrooks, PLLC do so with the intention of filing for a Chapter 7 bankruptcy. If you share the same intent, it is likely due to the fact that a Chapter 7 allows you to discharge many of your debts. Yet this benefit is not made available to all in order to prevent it from being abused. As you may already know, you first must pass the Chapter 7 means to determine whether or not you qualify.
On top of worrying about how to deal with creditors and pay monthly bills, people in Tennessee who struggle with serious financial problems may also have to be concerned about having a place to live. Homeowners facing these types of issues may be at risk of losing their homes and may want to find solutions that allow them to keep their treasured houses. Filing for a Chapter 13 bankruptcy may help them do just this.
There are many advantages to filing Chapter 13 bankruptcy for those who are able. However, filing for Chapter 13 bankruptcy in Tennessee means meeting certain eligibility requirements in regard to the debt that one owes, as well as the income that one earns. There are limits to the amounts of debt that one can owe and still qualify for Chapter 13 bankruptcy. Specifically, according to the United States Courts, one must owe less than $1,184,200 in secured debt and no more than $394,725 in unsecured debt.
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.
Financial problems can often be contributors to marital strife. Many a couple in Tennessee has found themselves facing the end of a marriage in part due to excessive debt or different financial styles. Some people may choose to file for Chapter 13 bankruptcy in an effort to save their troubled marriages. When this decision ends up not working and a divorce is inevitable, it can leave spouses wondering how their bankruptcy may be impacted.