Making the difficult decision to file for bankruptcy can weigh on a Tennessee resident, but once they have committed themselves to pursuing the process to manage their debts their decision-making is not over. An individual who wishes to seek bankruptcy protections must still choose which form of individual bankruptcy will provide them with the best options for moving forward.
It may have started innocently enough -- a few purchases are made using a credit card and the balance is paid off every month. However, what happens when financial disaster strikes? Perhaps you become seriously ill and find yourself having to use a credit card to pay the thousands of dollars you owe in medical bills. Or, perhaps you are laid off, and find that you must rely on your credit card to pay for the basic necessities of life, like groceries or the electric bill. Soon, the credit card balance becomes unmanageable, and you find that you are unable to pay even the minimum monthly balance. As this shows, even the most hard-working individuals in Tennessee can find themselves in a world of trouble when it comes to credit card debt.
The student loan debt crisis is having a major effect on college graduates in Tennessee and throughout the nation. Young adults took out tens or even hundreds of thousands of dollars in loans to finance their college education. However, due to a downturn in the economy and stagnant wages, they were unable to find jobs post-graduation that allowed them to pay back their student loans. This, in turn, led many individuals to default on their student loan payments, leading to demanding phone calls from collection agencies threatening to take legal action if the debts are not paid. When a person's finances spiral out-of-control, they may want to file for bankruptcy so that they can have a fresh financial start. Unfortunately, traditionally student loans were ineligible for discharge through bankruptcy. However, the Department of Education may soon change that.
Financial certainty can turn into financial disaster in a split-second. A person in Tennessee could be unexpectedly laid off due to corporate downsizing, leading to a loss of income and an inability to pay their bills. Or, a person could be the victim of a car accident or a sudden, severe illness, that leaves them with a mountain of medical debt that they cannot overcome. People in these situations may try to rely on credit cards to make ends meet, but that will only exasperate their financial difficulties when their balances accumulate and they have no way to pay them off.
The holiday season is here, and people in Tennessee are flocking to stores and online retailers to do their holiday shopping. While gift-giving during this time of year is a cherished tradition, it can be easy to go overboard. A report by NerdWallet indicates that almost 25 percent of respondents stated that they spent more than they meant to last year, and 27 percent of respondents stated they did not make a holiday spending budget.
Suffering a serious injury or illness is bad enough, but the financial aftermath of such situations can be absolutely devastating. Many people in Montgomery and nationwide carry some sort of medical debt, and some of them may be in the difficult position of realizing that they are unable to pay their medical bills. In fact, according to one source, around 50 percent of items listed as being in debt collections in the United States consist of medical debt. Things go from bad to worse when debt collectors start calling, and especially if they file a lawsuit. However, there are things people in such situations can do to protect their interests.
Credit cards are so commonplace these days, that it may seem like just about everyone in Tennessee has at least one. While they can be useful, especially when there are incentives such as airline miles, the unfortunate fact is that sometimes a person's life circumstances keep them from being able to pay off their credit card bills each month, leading to credit card debt.
If you are overwhelmed by debt and cannot seem to find a way to repay it, there are ways for you to have your debts forgiven in Tennessee. Under Chapter 7 bankruptcy, many of your unsecured debts will be discharged, including credit card, personal loan and medical debt. You will get to keep exempt property, but the rest of it will be liquidated.