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Tennessee faces high bankruptcy rate

Tennessee residents have struggled a lot over the past several years. The so-called Great Recession has left many families trying to live with less. Despite reports of recovery, many people are still seeing reduced wages, higher gas prices, lower home values and more expensive consumer goods and healthcare. For many people this combination has resulted in a complete financial disaster.

A recent report confirms this. In this reports, Tennessee is named as the state with the most bankruptcy filings per capita in the entire country. According to the report, 65,000 people across the United States filed for bankruptcy in February. Last year, February saw 72,000 filings. Therefore, nationally, people are celebrating a 13 percent decrease in the number of filings. However, the story in Tennessee is much different.

The report claims that Tennessee saw 5.17 bankruptcy filings per 1,000 residents last month. At this rate, Tennessee has more than double the national filing rate. Nationally, the average was 2.39 bankruptcy filings per 1,000 people. Other states are also struggling, but not quite as bad as Tennessee. The next highest state was Alabama with 4.83 filings per 1,000 residents. Alabama was followed by Georgia, Illinois and Mississippi respectively.

Tennessee residents who are struggling to pay their bills should understand their legal options. In many cases, people can file for Chapter 7 bankruptcy. Chapter 7 bankruptcy will liquidate a person's non-exempt assets and discharge the debt. However, in reality, most people keep all or most of their personal property. It can be an important option for people who are struggling to make ends meet. Through Chapter 7 bankruptcy, people can get the financial fresh start they desperately need.

Source: Memphis Business Journal, "Tennessee tops in bankruptcy," Ed Arnold, March 9, 2015

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

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