Chattanooga Bankruptcy Law Blog

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.

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.

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.

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.