When filing for Chapter 13 bankruptcy in Tennessee, the debtor will enter into a payment plan approved by the court. This plan is legally binding for both the debtor and for the debtor's creditors. After the plan is established, it is up to the debtor to see it through to the end.
Student loan debt burdens many people in Tennessee and across the United States. This debt often makes it difficult for people to gain a solid financial footing as much of their income is used to repay student loans. Many people struggling with student loan debt may want to turn to bankruptcy to get a fresh financial start. While changes have been proposed to the current bankruptcy code, as was explained in a recent article on this blog, the current law makes discharging student loans in bankruptcy difficult.
Many Tennessee residents are struggling with tax debt. This debt can become a huge burden as people try to get their financial situation under control. Many people may wonder if turning to Chapter 7 bankruptcy can help to relieve their tax burden.
When people in Tennessee experience financial problems, one option that they might not consider for a variety of reasons is filing for Chapter 13 bankruptcy. However, Chapter 13 might be a viable choice for those who would like to have a fresh financial start. Before moving forward with a filing, it's imperative to know the advantages of filing for Chapter 13 and who is eligible.
A common concern among those who are having financial problems in Tennessee and across the country is whether or not they meet the eligibility requirements to file for Chapter 7 bankruptcy. Before moving forward with filing for Chapter 7, it's important to know what the eligibility requirements are so time and money won't be wasted when there are other preferable and more applicable alternatives available. When the details are understood, the decision of whether or not Chapter 7 is the best choice will be much easier.
Many Tennessee residents are in debt and searching for solutions. A Chapter 7 bankruptcy is one option for people who are facing credit card debt, medical bills and other consumer debt. When completed, a Chapter 7 bankruptcy can discharge people's debt and give them a fresh financial start.
Those Tennesseans who are struggling with overwhelming debt are not alone. In fact, a recent study conducted by the Urban Institute and Encore Capital found that more than one-third, 35 percent, of Americans who have credit files have debt that has been turned over to collection agencies. That's 77 million individuals. The study assessed non-mortgage debts like medical expenses and credit card bills that were so overdue that the account was handed over to collections. The median amount in collections is more than $1,300, a significant amount. Of course, many face much higher debt amounts that can leave them financially debilitated.
Many Tennesseans try to handle their debt responsibly. They attempt to make payments on time, pay debt off in a timely fashion, and communicate with their creditors when necessary. However, life is always unexpected, and sometimes unexpected events throw a wrench in our financial planning. An unexpected illness, job loss, or wage cut can all leave an individual facing tough financial challenges. However, there are other debts that may be thrust upon an individual in surprising fashion, leaving him or her desperate for help.
As college tuition and the cost of living continue to rise, more and more Americans are finding themselves with overwhelming student loan debt. With high interest rates, these debts can quickly spiral out of control and leave a borrower stressing over whether or not he or she will even ever be able to afford to pay it off. When such personal debt creates extreme financial challenges, these individuals may find themselves asking if they can discharge their student loans through bankruptcy.
Many Tennesseans live in fear of losing their home, and with the sluggish economy and the financial challenges faced by many, it is understandable. The thought of foreclosure can be terrifying, leaving a family not knowing what they will do next. While this fear can be paralyzing, those with overwhelming debt and facing foreclosure should dissuade themselves from inaction.