Life moves pretty fast, and sometimes unexpected things happen along the way. An unexpected injury or a lengthy illness can mean large medical bills, especially in this time of uncertainty with regard to health insurance. A period of unemployment due to a layoff or other circumstances beyond one’s control can lead to having to live on credit for a while. Even those who do have jobs may not make enough in our current economy to be totally without credit card debt. Required home or vehicle repairs may hit, causing a Tennessee resident to rack up debts that become difficult or impossible to pay.
Credit card debt can be very costly, especially as interest rates rise, and penalties accrue due to late or missed payments. The amount of such debt can easily grow beyond a family’s ability to handle it in no time flat. It may be easy to give in to despair in such circumstances, and to feel that there is no way out. However, that may not be the case, as there may be legal options for people in this situation.
This blog has previously discussed some forms of bankruptcy that might be available to some Tennessee residents who have large amounts of debt. Liquidation, also called ‘Chapter 7’ bankruptcy can discharge credit card and medical debt for those who meet the qualifying tests. Those with property that they wish to preserve, like a home, may be better off filing a Chapter 13 bankruptcy to come up with a plan to pay some part of their debts and have the rest discharged after a certain period of time.
Deciding what the best course of action is in any individual case may be difficult to do alone. People who find themselves in financial trouble due to medical or credit card debt may wish to consider whether speaking with an experienced Tennessee bankruptcy attorney may be right for them.