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.
Bankruptcy is a serious legal process that can have long-term financial ramifications on the economic health of those Tennessee residents who choose to pursue it. However, for some, the potential drawbacks of having a bankruptcy on their records may be outweighed by the advantages they experience by ridding themselves of burdensome debts.
In Tennessee, a Chattanooga resident may hold a number of different debts. They may carry balances on their credit cards and may owe money on their home mortgage. If they have a car payment then they are also responsible for paying off a debt to a lender and they may also have debts to banks, friends and family members. All of these different debts, when lumped together, can make for an overwhelming financial situation for the individual and may eventually lead them to consider filing for bankruptcy.
Though few Tennessee residents ever want to file for bankruptcy, many are able to turn their financial fortunes around through this legal process. Whether they liquidate assets to repay creditors through Chapter 7 bankruptcy or reorganize their monthly payments through Chapter 13 bankruptcy, many experience the benefits of the process before it is even complete. One of those benefits is the automatic stay which will be the topic of discussion for this blog post.
Not long ago this Tennessee-based bankruptcy and debt relief blog discussed a trend in consumer bankruptcy filings.
When financial challenges become overwhelming and a Chattanooga resident has few options for improving their money problems on their own, they may turn to personal bankruptcy as a means of getting out from under burdensome debt. Whether through Chapter 7 bankruptcy or Chapter 13 bankruptcy they may be able to establish strong financial footing, and based on data provided by the United States Courts, they would not be alone.