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Chattanooga Bankruptcy Law Blog

What happens at a meeting of the creditors?

Filing for Chapter 13 bankruptcy is the beginning of a lengthy legal process that may force an individual to face difficult truths about their financial situation. For example, one of the requirements of moving through the process that a Tennessee resident must complete is a meeting with the creditors to whom they owe money. The meeting of the creditors can be an intimidating event for a person who is challenged to keep up on their payments to their lenders and loan holders.

After a person files for Chapter 13 bankruptcy their matter will be reviewed and a meeting of the creditors will be scheduled. The meeting typically will occur several weeks to two months after the individual has offered their Chapter 13 petition. The meeting will involve all of the creditors to whom the debtor intends to pay money through their repayment plan as well as the debtor.

Personal property that may be exempt from bankruptcy

Not long ago this bankruptcy and debt relief legal blog published a post regarding bankruptcy exemptions for Tennessee residents. In the post, readers were informed that in our state individuals must use the state's exemptions, rather than the exemptions that the federal government offers to individuals in other jurisdictions. This post will focus on one small part of the state's list of exemptions available to bankruptcy debtors: personal property.

Personal property generally refers to the items that individuals own and can possess in their homes. Real property, such as houses, parcels of land and commercial buildings are generally not considered personal property. Items, such as clothing, books, cooking utensils and others would constitute personal property.

Dealing with the trials of post-holiday debt can be stressful

During the recent holiday season, you might have visited a variety of stores and retail outlets in Tennessee in pursuit of finding the perfect gifts for your loved ones. While you may have started out with a budget for holiday spending, similar endeavors have a way of bringing out the generosity in consumers.

Now that the holidays have come and gone, you may be dealing with the fallout of your recent shopping spree. If you placed a substantial portion of your purchases on credit cards, you may be closing in on the time when your bill will arrive, and this document could leave you feeling somewhat overwhelmed.

Americans turning to crowdsourcing to pay off medical bills

There is no question that the quality of medical care that a Tennessee resident will receive when they suffer an illness or injury will be superlative. Hospitals throughout the state and the country are equipped with the best doctors and technologies in the world to provide patients with state-of-the-art care. However, having the best and being at the forefront of medical advances is expensive, and unfortunately patients are often left carrying the costs of the treatments and procedures they need to protect their health.

Medical debt is a big problem for many people, and it is not uncommon for individuals to be unprepared to pay off emergency medical bills that may strike without warning. Like credit card debts, medical debts can grow over time when individuals do not make timely payments on their bills and interest and fees begin to amass.

Make informed choices about how to manage credit card debt

If readers of this Tennessee bankruptcy and debt relief blog are anything like other Americans then they are probably bracing themselves for their coming credit card bills. With the holiday season in full swing many people turn to their credit cards to make purchases for their homes, their loved ones and themselves. Those purchases can add up fast and turn into massive credit card spending that can be hard to pay off.

Unmanageable credit card debt can become a financial burden for a person who does not have the financial means to pay off their debt before it becomes due. As readers know, when credit card statements are not paid in full, interest and fees may be applied to their totals that can expand the amount of money individuals must pay to insurmountable sums. Unpaid credit card bills quickly become credit card debt and problems that individuals must address to avoid future financial peril.

What will filing for Chapter 7 bankruptcy do to my finances?

It is important that readers of this blog understand that their financial situations are unique. Individuals are advised that this and other articles on this blog are informational only and case-specific help should be sought from a bankruptcy attorney.

However, there are some general points that readers may find valuable about the effects of Chapter 7 bankruptcy on filers' personal finances that are relatable across cases. For example, a person who has their debts discharged through Chapter 7 bankruptcy may see the process on their credit report for up to a decade. As a person's credit report and score are used by lenders for the purpose of securing loans, mortgages, and credit cards, the presence of a bankruptcy can have a wide impact on a person's capacity to receive credit.

Options when a repayment plan is not confirmed by the court

There are many procedural steps that must be met in order for a Tennessee resident to successfully implement the repayment plan that they create through their Chapter 13 bankruptcy filing. Their plan must be feasible for them to follow and it must properly prioritize the debts that they are bound to repay. The debtor's creditors must agree to the terms of the repayment plan, and finally the bankruptcy court in charge of the debtor's case must confirm it to allow repayment to begin.

While many individuals are able to execute their original repayment plans, others discover at their court confirmation hearings that their plans will not be approved. When a repayment plan is rejected by a court a debtor has several options for moving their case forward.

An automatic stay may not solve all your debt problems

The decision to file for bankruptcy is a big one. It may have taken you a lot of back-and-forth and stressful consideration before you decided that this option would likely best suit your debt relief needs. Your situation may have gotten to a point where creditors were garnishing your wages or you faced foreclosure on your home, and you knew you needed to take action.

When it comes to the benefits of bankruptcy, you may be particularly interested in the automatic stay. This action is a court order for creditors to stop collection actions against you, which could include garnishment, foreclosure, repossession and other actions. However, do not think that the automatic stay will solve your problems forever. This benefit does come with stipulations.

Is medical debt considered secured or unsecured debt?

Different types of debts can have different priorities. Depending upon the type of debt that a Tennessee resident holds, their creditors can pursue different methods of seeking the collection of the debtor's obligations. If a debt is secured then there is property that may be reclaimed in satisfaction of the debt. For example, a car loan is a secured debt because the lender can repossess the debtor's vehicle if they stop making payments on their loan.

However, debts that do not have property backing them are considered unsecured debts. Medical debts, like credit card debts, are unsecured. There is nothing that a doctor, medical group, or hospital can take away from a person who cannot pay their medical bills, though there are a number of actions those entities can take to get the money they are owed.

Take charge of your debts in the New Year

With the holidays rapidly approaching and credit cards getting used with vigor, Tennessee residents may be afraid to see their bills in the New Year. It can be easy to let the spirit of giving drive one's desire to buy presents for the people who they love and who are important to their lives. However, holiday spending can be a detrimental practice for those who will not have the money they need to pay off their debts when credit card statements come due.

The law firm of Mark T. Young & Associates knows that it can be hard for Chattanooga residents to exercise restraint in their spending when Christmas is just around the corner. The firm is prepared to discuss debt relief and bankruptcy options with men and women who discover, come January, that they are not financially situated to keep up with their loans, bills, and other mandatory payments.

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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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