Chattanooga Bankruptcy Law Blog

While we try to do everything in our power to stay healthy or overcome illnesses and ailments, we can still face many medical issues. The cost of healthcare is ever increasing, making it difficult for some patients to pay their bills right away. While payment plans are an option, when medical debt continues to grow because ongoing medical care is necessary, it can seem impossible to ever reach a point where their balance will return to zero.

When faced with such a trying financial and personal time, it is important to explore debt relief options. It might not seem like an ideal step to take, but filing for bankruptcy could help an individual overcome their growing medical debt. Bankruptcy is not just for those struggling to pay their mortgage, facing foreclosure or downing in credit card debt. At Mark T. Young & Associates, our law firm is here to help those in the Chattanooga area navigate their financial problems.

Credit card debt is not just a problem for the very young. In fact, according to one study, American households carry an average of around $6,000 in credit card debt at any given time. This means that many men and women in and around Chattanooga are struggling with overwhelming balances on their credit cards as they read this post.

There are different ways of approaching credit card debt in terms of how fast a person wants to or can pay down their balance. If a person is able to pay more than their minimum payment, then their balance will come down faster, and they won't have to pay as much in interest as someone who pays only the minimum. On a balance of about $6,000 with an interest rate of just under 15 percent, it would take a person more than 14 years to pay off their back debt.

Like most Tennessee residents, you're likely no stranger to fluctuating economic situations. Most people experience some type of ebb and flow with their finances, especially if they encounter unexpected changes in life or crises. Maybe you switched jobs and your new income doesn't quite yet match up to your expenses and cost of living. Perhaps you're going through a health crisis that requires specialized medical treatment and is causing temporary debt.  

The good news is that most financial problems are, in fact, temporary. A key to resolving them is to clearly understand what options are available and make informed decisions as to which course of action best fits your particular needs and ultimate financial goals. More good news is that there are support networks in place to help you if you're unsure which route to take. If you're considering filing for bankruptcy, it's best to gather a basic understanding of the differences between Chapter 13 and Chapter 7 before taking action. 

This Tennessee bankruptcy and debt relief blog has offered numerous posts on the benefits that bankruptcy can offer to men and women who are struggling with debt and unsure of how to get ahead in their financial lives. However, a person cannot simply decide to pursue bankruptcy and have their matter automatically accepted by the courts. In order to begin a Chapter 13 bankruptcy, for instance, a person must first legally qualify for the process's protections.

In order to qualify for this particular form of bankruptcy a filer must be an actual person as opposed to a business organization like a corporation. While this may seem like an obvious requirement, it is important for the reader to remember that businesses can take on legal statuses under the law and therefore can have rights; filing for Chapter 13 bankruptcy, however, is not for these sorts of organizations.