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Chattanooga Bankruptcy Law Blog

Where do most Tennessee residents fall re average household debt?

Whether you're a spender or a saver, there have likely been times in your life when you had to pull the purse strings a bit tighter to ride out a financial crisis. Perhaps you sustained an unexpected income change or someone in your family faced an urgent medical need that caused undue financial hardship across the board. It's easy for things to get out of hand once the scales tip toward debt.

Current statistics suggest that debt is typically highest in households with the most income. There are also certain regions of the nation that appear to have higher rates of debt than others do. That doesn't necessarily mean, however, you are immune to money problems if you happen to reside in a low-debt area. The good thing is that there is usually support available if you run into a major problem and need help finding a debt relief solution.

Chapter 13 bankruptcy exemptions could allow you to keep asset(s)

When debt gets out of control, it can be hard to know what to do next. Feeling like your back is up against the wall financially isn't a desirable place to be. Figuring out next moves can feel limiting, as debt can impact other facets of your life. There is a way to get out from under the crippling debt and get your life back.Chapter 13 bankruptcy could be a great option for someone who is overwhelmed by debt. In Chapter 13 bankruptcy, a reorganization of a debtor's assets and the creation of a repayment plan to pay back creditors for debts is created to make debt more manageable. It's different from Chapter 7, but bankruptcy exemptions can still be enacted to protect specific assets from the reorganization process. Bankruptcy exemptions can include a variety of assets.

Assets like automobiles, family homes, household items and furniture; and even jewelry can be covered under a bankruptcy exemption. This can appease a person who is worried about losing every asset to their name when filing for bankruptcy. While many may need to be considered in order to achieve a favorable financial situation post-bankruptcy, it's possible to exclude one or a few, hence the name, exemptions. Chapter 13 bankruptcy can be tailored to you and your specific situation.

Study shows correlation between health and debt

There is a lot of attention put on the mantra of being healthy and living a healthy lifestyle. But beyond your health, how else could a person's life be impacted due to a healthy or unhealthy lifestyle? According to a new study, health and debt are negatively correlated. That is, the worse a person's health, the higher the chance of debt and bankruptcy. There are a few reasons for this, as concluded by the study conducted by researchers at the University of Georgia and the Federal Reserve Bank of Chicago.

As far as earning potential, healthy people on average make 28% more in their lifetime compared to unhealthy people over their lifetime. To put a number to a person, the average healthy 65-year-old with high school degree has $230,000 in wealth compared to $120,000 for an unhealthy 65-year-old with a high school degree. Also, the study showed that unhealthy people work less. Participation in the labor supply among the healthy is at 90% while participation for unhealthy people is 70%.

What are "yo-yo debtors?"

Believe it or not, the winter holiday season will be here before we know it. Many people plan ahead for this time of year, carefully managing their finances so that they can pay in full for gifts, parties and other expenses associated with the holiday season. However, for some people, including many people in Tennessee, the holiday season means one thing for their finances: increased credit card debt.

A recent news article noted the instances of so-called yo-yo debtors. People who fit into this type of category handle their debt and finances in a somewhat unique way. The report indicates that yo-yo debtors will go for periods of time when they are racking up debt on their credit cards, but then they will pay it all off. And then they will do it over and over again. These types of peaks and valleys with credit card debt can wreak havoc on a person's finances.

Chapter 7 bankruptcy can help those struggling with debt

Life costs money and sometimes its expenses come all at once. Whatever reason you have for taking out personal lines of credit, opening and racked up credit card charges or essentially charging anything with the intent of paying it back later there is a way out. The intentions to pay back the money are always there. However, sometimes things can happen outside of a person's control and it can make paying back debts feel impossible.

That's where Chapter 7 bankruptcy comes in. While there are many options when paying back debt, many will prove futile or ineffective. Chapter 7 bankruptcy isn't like that. A person can legitimately pay down their debt by consolidating debt and getting a manageable monthly payment. Sometimes debt can even be forgiven in certain circumstances.

The automatic stay offers you automatic benefits

In addition to significant financial stress, owing a large amount of debt can bring a host of significant and unpleasant consequences to your life. From growing interest to phone calls from creditors, it may seem like no part of your life is immune from the effects of unmanageable debt.

Consumers overwhelmed by debt often feel out of control, but there are several things that a Tennessee resident can do to escape from this burden. One of the options available to you may include filing for bankruptcy. In addition to providing you a way to deal with your debt once and for all, it can also provide you the benefit of the automatic stay.

Bankruptcy can help if facing a home foreclosure

When many Chattanooga residents think about their prized possessions, there are a few items that seem to make the top of the list for most. One of those items is the family home. Since homes can be an excellent investment in the long-term and it's where a family sets down roots, a home is oftentimes a person's most valued physical possession. If you are facing a possible foreclosure on your family home, there may be a way to save it from bank ownership.

Doesn't bankruptcy liquidate all of your assets? That answer is sometimes. There is something known as a bankruptcy exemption. This is when specified assets are shielded from creditors and the liquidation process. Not every asset can be protected; however, if a person is focused on a specific asset, like a home, it could potentially be protected from foreclosure.

Who do you pay first in a debt repayment plan?

As an adult, you have to make some tough decisions that no one can make for you. One of these types of decisions relate to financial decisions. A person has to decide how to best manage their finances. This can be trickier than it sounds, and debt can creep up on a person and make it harder to make ends meet.This could be due to a variety of factors; many Chattanooga residents are surprised by an emergency situation where they have to come up with a lot of money in a hurry. Oftentimes people utilize credit cards to help them come up with the funds. However, credit card debt can quickly get out of control and leave you short at the end of the month.

Many wonder, how can I pay off this debt? If I design a debt repayment plan, who do I pay first? A bankruptcy repayment plan can help to answer those questions as those in debt should pay for necessities first and pay down higher interest rates first. A bankruptcy plan can consolidate interest rates and payments into a more manageable amount, and it's important to meet any legal obligations related to this type of situation. Any deferred loans should begin repayment as deferring that payment accumulates interest while it waits.

Struggling beneath credit card debt? Relief is out there

Life is expensive. Between paying for the necessities like mortgages and food, there are other expenses like back-to-school expenses and unforeseen costs, such as an automobile repair or unexpected medical expenses. These expenses often creep up at the worst time, when people are least expecting them. Even if a person has savings, they don't always cover the entire expense. That's where a credit card can be a handy to cover the remaining expenses.

However, credit cards have to be paid back. If a person maxes out their credit card when unexpected expenses pop up, it can make even paying the minimums due difficult. If a person is barely paying the minimum on their credit cards, debt can pile up quickly. With the compounding interest, it can make it feel like the debt will never dissipate.

Tennessee technology subcontractor files for bankruptcy

Owning and operating a business isn't always a clear and precise route. Sometimes things come up that challenge even the savviest of managers and business owners. A Tennessee technology subcontractor for Google found tough times recently, forcing them to file for asset reorganization bankruptcy. Essentially, the company has overwhelmingly more liabilities than assets and had to do something to reconcile that discrepancy.

The company is a tech subcontractor for giant Google and was much anticipating the rollout of their new technology. So much so, that they took on a bunch of liabilities in anticipation of and in order to be ready for the new tech release. However, the rollout of the technology slowed to the point where the new tech could not be capitalized. Meanwhile, the company had already incurred debts.

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Mark T. Young & Associates
2895 Northpoint Blvd.
Hixson, TN 37343

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