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Chattanooga Bankruptcy Law Blog

Keep your car and fight back against repossession efforts

You need your car for work, to get to school, to go to the grocery store and even to drive your children around. Having a vehicle is critical to your career and your independence, so if you start receiving threats of repossession, your right to drive in Tennessee is at risk. Falling behind on payments is something that many people face, and by taking the appropriate steps, you can make it stop. 

When you finance a vehicle, the creditor or leasing company has the right to take your vehicle in the event that you fall behind on payments. You may feel powerless to do anything, especially if you do not have the extra money to catch up on the debt, but bankruptcy may be an appropriate step for you. Filing for bankruptcy will halt the repossession process.

Nonprofits act to help Chattanooga residents with credit

Debt can be overwhelming. What many Chattanooga residents stand to lose when their finances are in disarray could include assets like a car or home. A person's credit score could be negatively impacted and thus make it difficult to get approved for financing on an asset later on. If you or a loved one feels like they do not have a handle on their finances, there is a free credit counseling event in Chattanooga held by several local non-profits.

Tennessee has the highest bankruptcy rate in the nation. The nonprofits hope to educate resident about their finances and long-term goals in hopes of helping those who need it gain a sense of financial literacy and freedom. Also, it will serve as an informational session for those whose debt has gotten out of control. There has to be a way to tame it, to ensure that a person's financial situation gets back on track.

Chapter 13 bankruptcy allows you to pay back your debts

A penny saved is a penny earned. Well, that's what your parents always said right? But the way it is today, with cost of living at an all-time-high, it can make it difficult for anyone in Tennessee to save money. This can lead to devastating and crippling debt that makes it hard to even get up in the morning.

For people who dodging debt collector calls and are worrying about how to put dinner on the table, there is a way out. Chapter 13 bankruptcy allows you to consolidate your debts and even pay back what you owe over time. This is a great option for people who do not want to default on certain debts or bills. A payment plan and asset consolidation under Chapter 13 can help a person bridge the gap between their debt and their life.

Chapter 7 can mean less anxiety for Tennessee residents

It can happen to anyone. A serious illness occurs to you or someone in your family. You get laid off with little or no notice or severance pay. A major household repair crops up, or the car you rely on to get places needs to be fixed or replaced. Suddenly, you have major debt, and little income, and bills go unpaid. Creditors begin calling and sending letters, and you begin to get less sleep as you lie there wondering what you and your family will do.

This unfortunate scenario occurs all too often in Tennessee and throughout the country. Especially after the economic downturn of 2008, many people found themselves in just such a situation. When things get really bad, there may be levies on bank accounts or wage garnishment, or even a law suit. What can a person who has fallen this far behind, even through no fault of his or her own do?

What are the possible advantage of Chapter 13?

Being in debt is stressful. When a Tennessean cannot afford to pay debt, the individual may begin to feel depressed or worthless, and may feel like there is no way out. However, people should understand that there might be ways out.

One way to do this is to consider a Chapter 13 bankruptcy filing. This is a filing that allows a debtor to reorganize debts, rather than "liquidating" their assets, as would be done in a Chapter 7 filing. There may be advantages to pursuing one type of bankruptcy over another. In this post, we will take a very brief look at some of the potential advantages of a Chapter 13 bankruptcy.

Tennessee locales look to rein in payday loans

Most residents are likely aware that credit card debt is a huge problem in the state and nationwide. But, what if someone came to them and told them that there was a card that would charge 460 percent interest? One would think that people would avoid that if it all possible. However, according to consumer groups, that is exactly what it is like when individuals use payday loan businesses.

As our state is one of the birthplaces of payday loans, their lobby has a strong presence in the legislature. And, as regulations are loose, somewhere over 6 percent of adults in Tennessee utilize such loans.

Separating fact from fiction regarding consumer bankruptcy

If you are constantly struggling to pay the bills and feel as though you are drowning in debt, you might be wondering about available options for relief. Perhaps you have tried to restructure your finances on your own, but the amounts you owe are simply too heavy a burden.

When weighing the options for debt relief, you may have considered bankruptcy but had some reservations about the implications thereof. However, there are some myths about the process that may have previously deterred you from considering it a viable option.

Homestead exemptions and Tennessee bankruptcies

Residents may have heard of the idea of "homestead exemptions. And, they may be more familiar with the concept in the context of the taxes. Nonetheless, a more important use of the idea may be when filing bankruptcy.

Bankruptcy exemptions are used by debtors to carve out pieces of property that can be shielded from debtors. As always, debts that are secured by property, such as land under mortgage, or a car purchased with a car loan, remain subject to repossession, even in bankruptcy. However, a homestead exemption can, in some cases, be the difference between keeping the family home, and seeing it liquidated to pay one's debts.

What is Chapter 7 credit counseling in Tennessee?

Sometimes, people end up with debts they cannot pay, whether due to unemployment, unexpected household expenses or a serious illness that created large medical bills. One just want it to stop, so they file for bankruptcy.

Credit counseling courses are generally required before an individual in Tennessee can file for Chapter 7 bankruptcy. The purpose behind the course is to cut down on unnecessary bankruptcy filings, and to make sure a debtor had no other options available to him or her. It should not be confused with debtor or financial education courses, which are also required after filing the bankruptcy petition. These courses are meant to keep the debtor out of bankruptcy court in the future.

Don't let fear of losing assets keep you from debt relief

We spend years gathering things-the car given by parents on graduation day, the china dinnerware you got on your wedding and the vintage ring your grandmother gave you. Many Tennessee residents may lug their prized possessions around from city to city as they move around for various reasons. This is why the idea of filing for bankruptcy may be daunting-as mentioned in last week's post, many are under the impression all assets must be given up in a bankruptcy filing. But this is not the case.

There are many things that a filer may be able to keep, known as exemptions. Last week's blog listed a number of assets, including appliances, tools of the trade, and jewelry and vehicles under a certain amount. Depending on the type of bankruptcy you opt to file for, the exemptions vary. But the end result is the same-not everything is lost in the process of bankruptcy. And an even better end result is the freedom from crippling or overwhelming debt and anxiety.

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

Toll Free: 888-376-0282
Phone: 423-933-1606
Fax: 423-877-0363
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