Chattanooga Bankruptcy Law Blog

Many Tennessee homeowners have been hit hard by the weak residential real estate market. Large mortgages and deflating property values have left many families in search of a solution to shed some of their debt in order to protect their homeownership.

Filing Chapter 13 bankruptcy may be a solution to reorganize and pay down debt, but some observers believe the protections currently offered under bankruptcy do not go far enough. In the case that a Chapter 13 filing is unsuccessful, the bankruptcy may be converted to Chapter 7, which typically includes full-scale liquidation of assets and property in order to pay back creditors.

When a person is in need of immediate medical attention, their personal debt is probably one of the last things on their mind. Unfortunately, many emergency room patients have been confronted by their medical debt collectors as they are trying to receive treatment. Reports indicate that patients around the country, including Tennessee, are being forced to pay their bills in order to receive treatment.

Accretive Health, the nation's largest medical debt collection agency, has been publicly criticized for their aggressive collection methods. The tactics are a result of hospitals desperately seeking money for unpaid medical bills. In the past, it was not uncommon for collectors to approach patients after medical visits, but confronting debtors in the emergency room is something new, but is becoming increasingly prevalent.

Even though the economy is beginning to recover, it seems as though no one was left unaffected by the recession. This is indicated by rapper Young Buck's recent decision to file for Chapter 7 bankruptcy in a federal court located in Tennessee. Included in the rapper's liquidation are rights to his intellectual property, which were not considered to be a bankruptcy exemption.

It's often the case that Chapter 7 filings include a significant asset liquidation process. The trustee assigned to the rapper's case decided that rights to his compositions and music royalties would be sold to pay back creditors. Young Buck, legally known as David Darnell Brown, could not formulate a workable business plan, so the court assigned the trustee to do that for him. This move limited his ability to determine which assets would be exempt from the bankruptcy process.

With a highly-competitive job market in Chattanooga, Tennessee, and across the country, people are looking for ways to distinguish themselves as the most qualified person for a job. As such, this tight economic situation has pushed many people to go to college or pursue further education. While advancing one's knowledge is a worthy goal, there have been side-effects for these actions: Many people have taken on high levels of student loan debt to finance their education.

In some cases, high student loan debts become a major problem when people are unable to find a job that can help them pay off their loans. Furthermore, student loans from private lenders are not dischargeable in Chapter 7 bankruptcy. Even if those with debt issues choose to take the step to clear debt and begin repayment, they cannot wipe-out their student debts, as is possible with many other kinds of debt.