While bankruptcy may affect a Chattanooga resident's credit for a period of time, it is not a permanent black mark on one's record.
One of the biggest protections that Tennessee residents can receive after filing for personal bankruptcy is a stay on actions of collection on their loans. During bankruptcy, a person is generally given time to either liquidate their assets through a Chapter 7 action or create a repayment plan through a Chapter 13 action. The idea is to give a debtor an opportunity to put themselves in the best possible position to alleviate their burdensome financial troubles and to emerge at the end of the process without debts.
Sometimes the one person that a Tennessee resident may struggle to be honest with is themselves. When it comes to approaching life in a truthful, honest manner, it can be tough for individuals to hold themselves to the high standards they expect out of their friends, family members and co-workers.
It is a common practice of Americans to save their money so that one day they may be able to leave their jobs and enjoy their retirement years before health issues and old age deprives them of their happiness. With the help of investments, pensions, and other retirement tools, many Tennessee residents are able to achieve this dream and still have some money left over to give to their descendants in their estates. However, this is not the case for all older Americans. A disturbing study recently revealed that aging Americans are filing for bankruptcy at a much higher rate than in the past.
Chapter 13 bankruptcy is a topic that has been discussed on this Tennessee debt relief blog a number of times and may seem to readers to be a good way to find financial freedom. While it is imperative that individuals seek the counsel of bankruptcy attorneys to fully understand how bankruptcy might affect them, this post will offer readers an overview of what they must do to qualify for the process.
It is a common misconception that a person's financial health will always improve over time. The idea behind this belief is that as time goes on a person will contribute more and more to their savings, their retirement nest egg will grow, and they will eventually be able to stop working and enjoy the remaining decades of their life in financial comfort. A recent report by the Consumer Bankruptcy Project suggests that this is not the case.
It is not uncommon for Tennessee residents to take out loans for the items they wish to purchase. An individual may elect to secure a mortgage so that they can move their family into a home, or a person may finance their vehicle with a multi-year loan. Sometimes they get loans with other people, such as their family members or friends.
It can be hard to admit when a person has lost control of their finances. An emergency or unexpected event can throw a wrench into a person's plans and destroy their savings in a heartbeat, or over time a person may slowly erode their nest egg due to bad investments and spending choices. However a Tennessee resident finds themselves in the difficult place of considering bankruptcy, there are a number of topics they should evaluate before deciding to jump into the process.
There are certain events in life that Tennessee residents may wish to face alone. When they feel that they have let others down, or when they feel as though they have a challenge that only they can overcome, they may elect to face their problems on their own. There is one major trial, however, through which individuals may wish to seek professional counsel in order to achieve the best possible outcome, and that is overwhelming debt.
One of the biggest fears that a debtor may have about filing for bankruptcy is the financial challenges they will experience once they have secured their discharge. Despite feeling the crush of overwhelming loans and fees, a Tennessee resident may choose to forego an opportunity to file for bankruptcy because they believe the harm that it will impose on their future is too great. While individuals who file for bankruptcy do often suffer from hits to their credit scores, the challenges they face in the years after their discharge decrease over time.