For many people who struggle with debt in Tennessee, filing for bankruptcy ends up being their best option. Bankruptcy can be an opportunity to wipe one’s financial slate clean and start over again without past debts hanging overhead. While the reasons may vary from person to person, a common cause that leads people to incur large bills that they cannot afford is medical expenses. In fact, according to USA Today, medical debt is the number one reason that people file for bankruptcy.
If you live in Nashville and are struggling with debts that you cannot pay, you may receive contact from companies who are looking to collect on your outstanding balances. Creditors often sell their debts to companies who then attempt to induce consumers to make payment. Despite the fact that those agencies are restricted by certain regulations when it comes to contacting debtors, many do not follow the rules. At Rothschild & Ausbrooks, PLLC, we know how stressful it can be when a debt collector threatens or harasses you.
If you are buried under unmanageable debt and seeking a way out, bankruptcy may very well be one of the options you have taken into consideration. However, if you don't know very much about bankruptcy, which is not unusual for people going through it for the first time, you could find yourself believing some myths and half-truths about the process.
If you are struggling with debt, you can quickly get overwhelmed by your options for debt relief.
As anyone who has been harassed by creditors can say, the constant pressure of collection calls and letters can take a heavy mental toll on a person. This is especially true if the calls ever become more threatening or even malicious, which is not entirely uncommon.
Deciding to file for Chapter 7 bankruptcy is a huge step to take. However, there is still much work to be done even after this is made. In particular, there is a lot of paperwork involved. All Chapter 7 bankruptcy filers will need to keep an eye on these papers and requirements..
Tennessee consumers who are facing overwhelming debts, and continuous creditor harassment, may be seeking a solution to their financial problems. Due to the negative connotation and many myths related to bankruptcy filings, many people avoid consideration of such a drastic step. However, millions of Americans have resolved their financial issues by filing for Chapter 7 bankruptcy.
Many people believe that student loans cannot be discharged in a Chapter 7 bankruptcy, but this is just not true. In limited situations, you can get rid of student loans through a bankruptcy filing.
When a debt goes into collections, there are limits to what debt collectors can do to collect on a past due bill. The Federal Trade Commission lists on its website some of the prohibited tactics.