Tennessee Bankruptcy Lawyers Blog

Economy Picks Up, But Consumers Are Still Weighed Down by Debt in Tennessee

Fri, 18 May 2012 18:46:15 -0600

The good news is that the economy is showing signs of life.

The bad news is that the recession has left many of us with so much debt that we won't be able to take advantage of the economic improvement.

As The Tennessean reports, home construction, factory output, and employment - all important economic indicators - are on the rise. Meanwhile, consumer borrowing and spending are picking up.

Yet one in five families in the U.S. owes more on credit cards, doctor's bills, and other forms of unsecured debt than we have in our savings, according to USA Today.

During the recession, many folks were forced to dip into savings and rely on credit card spending to make ends meet. Now we're left with the burden of large and expensive debts - and no cash cushion to serve as a safety net.

Since our credit card bills are so high, many of us have no choice but to continue relying on plastic for everyday payments.

When you're spending beyond your means without any savings to fall back on, all it takes is one missed paycheck or other unexpected expense to start a downward spiral into wrecked credit and foreclosure.

Getting finances under control means getting debt under control.

If you're carrying just $10,000 in credit card debt at an 18 percent interest rate, it could take you 20 years to pay it off - and that's assuming you make every payment on time.

For families with too much debt to manage alone, Tennessee bankruptcy can be a practical solution. In many cases, credit card debt can be reduced or dismissed with a bankruptcy filing.

For those who qualify for Chapter 13 bankruptcy, filing can also stop foreclosure - even if the process has already begun.

With the weight of debt off your shoulders, it may finally be possible to enjoy financial freedom.

To Repair Finances, Consumers Must Take Pragmatic Approach to Cutting Costs, Filing for Tennessee Bankruptcy

Mon, 14 May 2012 16:44:16 -0600

American consumers are traditionally pessimistic about the national economy. Yet when it comes to our own economies - our family finances - we can be optimistic to the point of default.

From mounting credit card debt to missed mortgage payments, today's average consumer faces big financial troubles. But when it's time to fix our finances, we tend to take baby steps.

We chalk the money problems up to a temporary issue, like those unexpected car repairs or that bigger-than-anticipated medical bill. We optimistically hope for a solution, such as that pay raise our boss mentioned last year. We might make a few budget tweaks here and there, but for the most part we continue spending as usual, using credit cards to cover the gap between income and expenses.

Before long, our credit cards are maxed out, our house is on the verge of foreclosure, and that raise that we were holding out hope for never came through.

Half-baked solutions produce half-baked results. If you want to overcome overwhelming debt, it takes more than wishing and hoping - it takes action.

As our Tennessee bankruptcy lawyers point out, businesses routinely get themselves into financial difficulty. And when they do, the management team doesn't sit around second-guessing themselves, feeling embarrassed or hoping for things to get better. They make cold-blooded, calculated decisions that produce big results fast.

If a current strategy isn't working, businesses change course. This could mean downsizing, cutting costs, or filing for Tennessee bankruptcy - or "reorganization," as the business world likes to call it.

Consumers have a tendency to take bankruptcy personally. It's why many folks wait to file until we're out of all other options - and money. But by viewing Tennessee bankruptcy as a business decision, not a reflection of character, many consumers could finally attain control over debt.

A mortgage modification or budget adjustment may be able to save a few hundred dollars a month, at best. Our Tennessee bankruptcy clients routinely save thousands of dollars each month - and have the ability to stop foreclosure, repossessions, and harassment by bill collectors.

Big problems take big solutions. If you're buried in credit card debt or behind on your mortgage, bankruptcy may be the answer.

Debt, Not Declining Home Values, Leads to Mortgage Struggles and Foreclosures in Tennessee

Tue, 08 May 2012 13:16:38 -0600

As banks prepare to release a new flood of foreclosures onto the market this summer, already-falling home values will likely get even lower.

But while many homeowners are dismayed by the notion of losing more equity - especially if they're part of the estimated 11 million borrowers already underwater - Tennessee bankruptcy lawyers warn against getting too caught up in home values.

After all, concern with equity is what got many Americans into trouble in the first place.

During the height of the housing bubble, homeowners used rocketing real estate values as permission to take out home equity loans and lines of credit so that we could spend well beyond our means.

Houses were never meant to be investments - and certainly not get-rich-quick schemes. Our parents and grandparents bought their properties for security, a place to live, and a chance to raise a family.

Somewhere along the way, Americans have forgotten that a house is meant to be a home.

The only time values matter is when you're ready to sell. Otherwise, value - like age - is just a number.

Ninety-nine percent of the time, it isn't home equity (or a lack thereof) that interferes with a family's ability to pay the mortgage - it's debt.

Most Americans have spent the last five years so focused on economic numbers such as real estate values, the unemployment rate, and the stock market that we've neglected the most important numbers - those that make up our basic family budget.

When spending exceeds income, of course paying bills will become a problem.

Facing the facts isn't easy, which is why most of us would rather shift our attention to doom-and-gloom media stories. But by passively waiting for the economy to improve, we miss out on enjoying a real, lasting solution.

Tennessee bankruptcy has the ability to help millions of families stop foreclosure, prevent wage garnishments and repossessions, and reduce or completely eliminate our unsecured debts.

There's no reason that you shouldn't be able to stay in your home and find relief from overwhelming debt. Filing for bankruptcy in Tennessee can be an affordable way for homeowners to obtain legal debt protection - and a fresh financial start.

Concern About Student Loan Debt Drives Discussion Over New Tennessee Bankruptcy Laws

Wed, 02 May 2012 09:49:28 -0600

Bankruptcy was created to help Americans relieve the burden of impossible debt. Yet for the past 7 years, there was one important type of debt it couldn't ease: student loans.

But some legislators are bent on changing that, according to The Wall Street Journal.

In 2005, Congress revised bankruptcy laws to exclude the discharge of debt from education loans, except in rare circumstances. The theory was that, without collateral like homes and cars, young graduates would find it all too easy to walk away from their obligations if bankruptcy was a possibility.

What Congress couldn't foresee was just how out of control the student debt crisis would get within the next decade.

Earlier this year, the collective total of education loan debt reached the $1 trillion mark, higher than the nation's collective credit card debt.

Meanwhile, college graduates are finding it difficult to make payments. It's estimated that 27 percent of borrowers who have begun paying back loans are already delinquent.

Some are referring to the situation as the next big economic bubble. For the many young grads struggling to find decently-paying jobs, paying down debt may not currently be possible. Not surprisingly, young adults are putting off major purchases like homes and cars, which is having an effect on the entire economy.

A proposed bill would allow the most overwhelmed graduates to file for bankruptcy in Tennessee and other states. Unfortunately, even if it passed, it would only apply to a small portion of borrowers - those with private loans from banks and other lenders.

Ninety percent of school loans are government-backed, and therefore wouldn't be eligible for bankruptcy.

However, Tennessee bankruptcy may still offer indirect assistance to students, and families of students, drowning in student loan debt.

By relieving other forms of unsecured debt such as credit card debt and medical expenses, filing for bankruptcy may help debtors better afford loan payments, lower their overall debt burden, and eventually begin rebuilding credit.

Rising Number of Consumers Plan to Put Tax Refund toward a Tennessee Bankruptcy Filing

Fri, 27 Apr 2012 10:41:00 -0600

In the past, Americans have tended to put their tax refunds toward family vacations, new cell phones, and other fun indulgences.

This year, however, many cash-strapped consumers are spending their checks from Uncle Sam on something a little less frivolous - but potentially more rewarding in the long-run.

More than 200,000 Americans hope to apply their refunds toward a bankruptcy filing, according to the National Bureau of Economic Research.

Personal bankruptcy filings typically rise around the time when refunds get mailed out, but the surge should be even more pronounced in 2012, reports The Tennessean.

While Tennessee bankruptcy usually pays for itself many times over by helping consumers reduce all-consuming debts, it has become significantly more expensive since 2005, when U.S. bankruptcy laws were made more complex in order to prevent bankruptcy abuse.

As a result, many of the people who stand to benefit most from bankruptcy - such as families at high risk of foreclosure and swamped in credit card debt - tend to put off filing while they wait for an infusion of cash. Meanwhile, their debts grow larger and unpaid bills pile up.

Some argue that, rather than prevent bankruptcy abuse, the new laws have just made it more difficult for those most in need of help to receive relief.

With the average tax refund expected to be approximately $3,000 in 2012, many families will have more than enough to file for bankruptcy in Tennessee.

Obviously, consumers who can afford to pay down debt with their refund won't need to file. However, many of us have debts that have spiraled completely beyond our control.

Whether it's due to overwhelming credit card debt or massive medical bills, it can be almost impossible to catch back up when you've missed numerous payments and put your credit score through the ringer.

It may be hard to commit to covering bankruptcy costs when other bills need paying, but only bankruptcy has the ability to pay off for years to come. For many folks, bankruptcy has the power to stop foreclosure and either reorganize debts into manageable payments or discharge them entirely.

Filing for bankruptcy may not be as fun as putting your refund toward a family vacation, especially when you've been scrimping and saving for months and are in desperate need of a splurge. But bankruptcy can put you on the path to financial recovery so that one day you'll hopefully be able to enjoy life's little indulgences - without the guilt of having too much debt.

Children of Homeowners May Suffer Most in Tennessee Foreclosures

Tue, 24 Apr 2012 00:00:32 -0600

As many as 8 million children in the U.S. may be directly affected by foreclosure, according to startling new data reported in USA Today.

Since the foreclosure fiasco began in 2007, an estimated 2.3 million kids have lost their homes to a bank. An additional 3 million children face the same fate because their parents are either already in the foreclosure process or are at risk of foreclosure due to missed payments.

As our Tennessee Bankruptcy Lawyers Blog reported earlier this month, a new flood of foreclosures is expected to wash over the market later this year.

While moving is never easy on kids, foreclosure in particular can have devastating effects because it impacts kids physically, mentally, and emotionally.

As data by the advocacy group First Focus illustrates, children who change schools as a result of a move can see their reading and math scores fall by as much as if they had missed a full month of classes. Kids who move frequently are also 50 percent more likely to drop out of school before graduating.

Because foreclosure is typically the result of serious financial distress, many children of families facing foreclosure suffer health problems since parents are often without health insurance.

Foreclosure frequently leads to depression, anxiety, and relationship trouble in parents, which in turn impacts children.

Children do best in stable environment where they have a sense of security. Losing the roof over their head - and seeing their parents stressed out from the process - challenges all that.

These days, it's impossible to guarantee a stable financial environment. But parents who can manage to hold onto their home might be better able to help insulate their children from economic problems. Filing for Tennessee bankruptcy may make it possible.

Chapter 13 bankruptcy protection has the power to halt foreclosure proceedings and debt collection, giving families time to reorganize debts into a realistic repayment plan. Debt remaining at the end of a 3-5 year repayment period can often be discharged completely.

If foreclosure or other financial issues are threatening the health and happiness of your family, a Tennessee bankruptcy lawyer can help determine if filing can offer much-needed relief.

Tennessee Bankruptcy Protects Underwater Homeowners from Expected Flood of Foreclosures

Wed, 18 Apr 2012 21:58:55 -0600

It looks like the days of a homeowner staying in a house for months - or years - after ceasing mortgage payments are coming to a close.

Now that a $26 billion settlement with five major mortgage lenders has been approved, banks are ready to get back to the business of repossessing homes, according to a report by CNN Money.

Millions of foreclosures had previously been on hold while banks revised their repossession policies following the 2010 robo-signing scandal, in which lenders are accused of allowing employees to sign off on numerous foreclosures without proper documentation.

As a result, a large number of delinquent homeowners were permitted to stay in their houses long after they'd made their last payments. The average foreclosure timeline in the U.S. stretched to over a year - and as long as 861 days in Florida and 1,000-plus days in New York.

Not any longer. In states where court scrutiny is required for banks to repossess properties, foreclosures are already on the rise.

Already-low home values, artificially buoyed by the withheld foreclosures, are expected to fall 3.7 percent before the year is out.

Experts believe banks will be in a hurry to push all the foreclosures through at once in order to get the initial market shock over with quickly, so the market can (hopefully) begin to rebound.

For underwater homeowners hoping to find relief, the increased foreclosure activity may seem to come as a blow. In fact, it could be viewed as a wakeup call.

When homeowners stop making payments but don't take steps to find a solution, the end result will always be foreclosure - whether it takes two months or two years for it to happen. But with a longer process, borrowers' credit scores spend more time taking a beating.

A foreclosure isn't an easy way out; it's a stressful, expensive, and drawn-out experience that also ends with your house (and any equity) being stripped away.

When banks act quickly, homeowners must act quickly. Chapter 13 bankruptcy has the power to stop foreclosure while mortgage holders work out a repayment plan for late payments and overwhelming debt.

By filing for Tennessee bankruptcy, homeowners can stop waiting for the other shoe to drop and start taking back control of their finances and their freedom.

Local Home Sales Rebound, but Tennessee Foreclosures Continue to Drag Down Property Prices

Fri, 13 Apr 2012 12:12:54 -0600

There's good and bad news for Tennessee homeowners. Homes sales are picking up - but prices aren't, reports The Tennessean.

Compared to a year ago, sales of Middle Tennessee homes rose by 17 percent in March and 24 percent for the entire first quarter, according to the Greater Nashville Association of Realtors.

Some homes received multiple offers, resulting in bidding wars. Homes are also turning over more quickly. With less time spent lingering on the market, foreclosed properties may be less likely to have a negative impact on the values of neighboring houses.

But while prices were shown to rise slightly for some areas, they declined for others.

One realtor noted that today's prices are about equivalent to what we saw in 2002 - a full decade ago.

While quicker turnover helps home values, the sale of foreclosed homes still affects the values of other houses in the neighborhood.

Meanwhile, obtaining a mortgage remains a challenge for potential home buyers who have damaged credit due to overwhelming debt and missed payments.

For many hurt by today's real estate values, Tennessee bankruptcy may offer relief.

Bankruptcy was created with the sole purpose of assisting struggling consumers.

For folks with underwater mortgages, filing for Chapter 13 bankruptcy can provide an affordable payment plan for unsecured debts and late payments. So long as payments are made on time over the designated 3-5 year period, you can keep you home.

If carrying too much debt is keeping you from qualifying for fair interest rates - or from being able to qualify for a loan or credit card, period - a bankruptcy filing may be able to reduce other obligations so you can begin reducing your debt balance and making timely payments, both moves that will eventually lead to improved credit.

When you've exhausted other options, finding relief through bankruptcy in Tennessee can be a breath of fresh air - and a fresh start for your finances.

Parents Who Co-Sign for Kids May Be Stuck With Credit Damage, Tennessee Bankruptcy

Sat, 07 Apr 2012 13:57:50 -0600

Most parents would do anything to help their kids succeed. But by co-signing loans for young adults, many families are unintentionally making things more difficult.

Despite everything Americans have learned in recent years about having too much debt, we are putting our kids under immense pressure to borrow money.

With tuition rising rapidly, most students don't believe they can achieve an education without taking out student loans. With the cost-of-living high and the number of job positions low, young adults are making ends meet with credit cards. And when it comes time to buy a car or home, many young people can't gain approval without assistance.

As a result, more students are asking for help from moms, dads, grandmas, grandpas, aunts, and uncles, say Tennessee bankruptcy lawyers. By co-signing loans, these adults believe they can help their young relatives attain financing and establish a credit history.

But the benefits of borrowing are quickly erased when the primary borrower - the person you co-signed for - cannot afford to pay back the money.

According to a recent Business Insider story, as many as three-quarters of all co-signers are left to foot the bill after the primary borrower fails to make payments. Many must file for Tennessee bankruptcy in order to regain control over finances.

Not all young people who default on loans are recklessly irresponsible. In fact, many are intelligent and motivated young adults who simply haven't been able to achieve the income necessary to keep up with their bills in today's economy.

When your name is attached to their credit card debt or loan, you are liable for making any payments they cannot afford. In the case of a default, your credit score, home, and life savings will be at risk. In fact, a growing number of parents are facing foreclosure as a result of providing financial help to their children.

Not only can co-signing loans have negative consequences for parents, but it also causes trouble for young borrowers.

Many young people learn to use credit before they learn to use cash, making it impossible to understand important concepts such as budgeting and saving.

With poor credit scores from the get-go, young adults are unable to qualify for loans or forced to accept ridiculously high interest rates.

If you can afford to part with the money, making a personal loan is a lower-risk option because, unlike with co-signing, a default won't be reflected on your credit score. If the damage has already been done and you're suffering the consequences of a co-signing gone bad, bankruptcy may be able to help.

Chapter 13 bankruptcy can allow the primary borrower to make payments over a period of time, preventing default and protecting the co-signer. If lenders agree to release you from liability, you may be able to file for bankruptcy yourself.

While Tennessee bankruptcy can't be used to discharge student loans, it can free up money by reducing or eliminating credit card debt and other unsecured debts.

Tennessee Bankruptcy Can Assist Homeowners with Missed Mortgage Payments

Mon, 02 Apr 2012 03:16:24 -0600

The good news is that the rate of new mortgage delinquencies has slowed. The bad news is that many Tennessee residents are still behind on their house payments.

Just over 7.5 percent of Americans were delinquent at the end of 2011, down from 10 percent in 2010. However, that still adds up to a lot of missed mortgage payments. In all, 12.63 percent - or one in every eight borrowers - is either delinquent or in danger of becoming delinquent.

In Tennessee, where foreclosures are expected to rise rapidly in the months following the massive bank settlement, it's likely that dropping real estate values could lead to additional late payments.

For many, making a late payment is the first step down a path that leads to serious financial distress - and in some cases, foreclosure.

As the New York Times recently pointed out, many borrowers who miss a payment because of an unexpected expense or income loss end up trapped in a cycle of growing penalties and fees that can make it nearly impossible to get back on track.

Understanding mortgage payment deadlines can be the difference between a one-time late payment - or the beginning of the end.

Payment Deadlines

Mortgage payments are usually due on the first day of each month, but many lenders allow borrowers a 15-day grace period. Making a payment a few days late is risky, but if you can get organized so that it's a one-time occurrence, it probably won't have lasting results.

However, homeowners who are repeatedly late are more likely to get lazy and overshoot the grace period - and this is when you'll start to see serious consequences.

If your check arrives after the cut-off time on the 15th day of the month, you're going to be looking at a late fee of up to 5 percent, depending on your lender. If you're 20 days late, you now owe your original payment, a 5 percent fee, and, in just 10 days, the next month's payment. It doesn't take long for homeowners to get overwhelmed and fall behind for good.

Credit Damage

Once it's been 30 days past your due date, your lender reports your delinquency to credit bureaus, which place the information on your credit report. Each late payment remains as a mark on your report for 7 years.

Additionally, your late payment wreaks havoc on your credit score. A single missed deadline can drop your number by 100 points, and your score will continue to drop as time goes by without payment.

Many people avoid seeking bankruptcy protection because they fear filing for Tennessee bankruptcy will wreck their credit score. However, bankruptcy is often the only solution for getting current on mortgage payments, which is necessary to stop credit damage.

The sooner you get back in the habit of making on-time payments, the sooner you can begin rebuilding your credit.

Foreclosure Risk

Once you pass the 120-day mark, the bank can begin foreclosure proceedings. However, homeowners should avoid getting anywhere close to this timeline.

Studies show that borrowers who can get their act together within 30 days have the best chance of recovery. Longer than that, and the fees and penalties pile up to the point that it's virtually impossible to catch up.

Whether you're in danger of missing your first mortgage payment or are already in line to lose your home to the bank, filing for Tennessee bankruptcy can stop foreclosure and provide a manageable way to pay down debt.

Tennessee Bankruptcy May Help Homeowners Hit by Second Wave of Foreclosures

Thu, 29 Mar 2012 00:57:38 -0600

It looks like a recent drop in Tennessee foreclosures was just a brief calm before the storm, according to The Tennessean.

In 2011, approximately 11 percent of Nashville area home sales were related to foreclosures - a one-third decrease from the previous year. Now the number is expected to rise to as high as 15 percent.

Though it's still lower than the foreclosure rate at the peak of the mortgage bust, the prolonged downward pressure on prices is sure to have a negative effect on consumer confidence, which is an important factor in economic recovery.

Foreclosures were put on hold in recent months as banks were forced to sort through the mess they created by allowing forged and robo-signed documents. Now that the $26 billion mortgage settlement has been announced, lenders are getting back to business.

With 864 bank-owned properties in 2011, the Nashville metropolitan area already has one of the highest rates of mortgage defaults, auctions and bank-owned sales in the Southeast.

The worst-hit neighborhoods are newer communities built during the height of the housing bubble and sold to buyers taking out no-money-down mortgages. By late last year, nearly 15 percent of all properties in the region were underwater, meaning homeowners owed more on their mortgages than their homes are worth.

Many homeowners were given a false sense of hope as foreclosures slowed and homes began to appreciate very slowly. Now, it looks like it will be a little longer before equity can be regained.

Homeowners fortunate enough to be able to stay current on mortgage payments won't really suffer any consequences unless they sell their homes. Unfortunately, many folks can't afford to stay and make payments on expensive mortgages.

Many homeowners have found relief through Tennessee bankruptcy. Filing for Chapter 13 bankruptcy has the ability eliminate nagging credit card debt, freeing up more money for the mortgage. In some cases, mortgages and home equity loans can be eliminated completely.

Once the Tennessee foreclosure process has begun, it can go quickly, according to the Tennessean. But bankruptcy can work quickly, too. Our Tennessee bankruptcy attorneys have stopped foreclosures from occurring just hours before homes were scheduled to be sold at auction.

There's no telling when the housing market is going to recover. But with bankruptcy, we can help your finances recover today.

As Banks Trap Consumers in Cycle of Advance Loans, Nashville Bankruptcy May Offer Relief

Sat, 24 Mar 2012 11:03:40 -0600

Most of us would rather eat glass than knowingly sign up for a credit card with a 365% APR. Yet consumers are increasingly being tricked into loans with exactly that kind of sky-high interest rate - by their own banks, according to CNN Money.

Called advance loans, these short-term loans provide quick cash for bank customers with direct deposit checking accounts.

The arrangement is strikingly similar to that of payday loans, which are the cause for a large number of Tennessee bankruptcy filings each year.

Both payday and advance loans allow struggling consumers to pay the bills between paychecks. But because the balances and fees are due in full just two weeks to a month after the loan is established, it's common for borrowers to be unable to pay the money back.

As a result, many recipients of payday and advance loans are forced to take out an additional loan to pay off the first.

What makes the latest advance loans especially dangerous is that banks can debit the amount due directly from a person's checking account as soon as a recurring deposit - such as a paycheck - a is made.

Instead of just being unable to pay back the loan, now borrowers are also unable to pay any important bills, from the mortgage to the phone bill, because they never received their salary.

The loans have consumer protection groups crying foul. With big banks pushing predatory short-term loans, bank accounts are morphing from an important savings tool into an unsafe place for money. As a result, consumers may be encouraged to close bank accounts - and perhaps rely solely on credit cards and payday loans.

Short-term loans can result in the same vicious debt trap as credit cards, but because interest rates are much higher, consumers get into more trouble more quickly.

According to CNN Money, the average advance loan is for 10 days and charges $10 per $100 - but because the average consumer remains indebted to the bank for 175 days, the annual percentage rate can end up at more than 300 percent!

It's hard to turn down quick cash when you're living paycheck to paycheck, even when you know that the terms don't make sense. For many, bankruptcy is the only way to break the cycle.

If you're handing over every paycheck to the bank, you're essentially working for them. But as a customer, your bank should be working for you.

By allowing you to make manageable payments on unsecured debts - or discharge the debts entirely - filing for Tennessee bankruptcy can give you the foothold you need to get your finances, and your life, back on track.

Lingering Medical Bills Are Causing More Consumers to Turn to Tennessee Bankruptcy

Mon, 19 Mar 2012 09:52:13 -0600

There's a common stereotype that bankruptcy filers are unrestrained spenders. But statistics show that more Americans file for bankruptcy because of medical bills than credit card debt.

Hospitals and doctors are increasingly farming out patient bills to debt collection companies, according to a recent Associated Press story.

Between 2005 and 2010, the number of Americans contacted by debt collection agencies for unpaid medical debts rose from 22 million to 30 million.

Of these cases, an estimated 3.4 million Americans still have credit reports that show medical debt, even after the debt has been paid.

When your debts get kicked back to collection agencies, it automatically drops your credit score - even if you end up paying the bill.

In the AP story, a couple with seemingly good credit applied for a home loan, only to learn that a $200 bill they didn't even know about had been sent to a collection company, sinking their credit score and their chances of getting the mortgage.

CNN Health estimates that 60 percent of people who file for bankruptcy today do so because of difficulty paying medical bills. But here's the real shocker: nearly 80 percent had health insurance.

In more and more cases, unpaid medical bills stem not from lack of coverage, but from gaps in coverage such as deductibles and co-pays.

When combined with expensive mortgages and unsecured debts - such as credit card debt - small medical bills can be enough to push someone in an already precarious financial situation over the edge.

Sometimes a bill may be affordable, but it goes unpaid due to a dispute with the insurance company over a billing error or other problem. That debt can still be sent to a collection agency - and it can still drop your credit score.

Despite health care reform, the costs of medical treatment are getting more troublesome for American consumers. Tennessee bankruptcy is often the most realistic solution.

Health care is supposed to make us better, not make us sick with stress. If medical debt is causing you pain - either alone or in combination with other forms of debt - filing for bankruptcy in Tennessee may be able to provide relief.

As State Cuts University Budgets, College Students Take Out Bigger Student Loans in Tennessee

Mon, 12 Mar 2012 23:51:41 -0600

Tennessee universities are short on cash, and its students who are bailing them out.

While Tennessee funded 55 percent of public college budgets in 2002, a decade later the state is only covering 30 percent, according The Tennessean.

As a result, students are being crushed under a load of ever-increasing debt. Students at Middle Tennessee State University, for example, now have a cumulative student debt of $63 million - or $5 million more than the previous year.

Meanwhile, scholarships are increasingly more difficult to come by. For college students lucky enough to find financial aid, many programs are covering smaller percentages of expenses.

Despite threats by President Obama to withhold federal aid if colleges don't stop hiking costs, tuitions keep going up.

Typical student debts can range anywhere from $10,000 to $100,000 by graduation time.

When economic times are good, it's possible for new grads to pay the bills with an entry-level job. Unfortunately, today's economy means many graduates are working at the local coffee shop or fast-food joint rather than a corporate office.

Without a decent paycheck, it's easy for students and grads to get in the habit of relying on credit cards to cover costs while they continue to pay school loans. In fact, many young people are racking up credit card debts as high as their student debts.

Some are speculating that the rise of unmanageable student debt will be the new housing-bubble crisis.

In many cases, bankruptcy can provide relief.

Most students don't consider filing for Tennessee bankruptcy because student loans cannot typically be discharged unless they can be proven to provide an undue hardship. But bankruptcy can often help the millions of young people who have been pushed into overwhelming credit card debt because of student loans.

Filing for bankruptcy presents the ability to eliminate unsecured debts - i.e. credit card debt, medical bills, and other non-college-related burdens not secured by assets.

If you're regularly maxing out credit cards and making late payments, getting back in control of your debt can help you begin rebuilding your credit score so you can qualify for loans in the future.

College is supposed to increase our chances, not limit them. By conquering debt, you can finally transition into the real world, leaving college - and its impossible costs - far behind.

Common Misconceptions Prevent Consumers from Finding Relief with Tennessee Bankruptcy

Wed, 07 Mar 2012 08:20:07 -0600

Sometimes we're our own worst enemy.

Case in point: While many Tennessee consumers are in a position to find financial relief through bankruptcy, most are too afraid to file because of unfounded fears.

According to Bankrate.com, many Americans believe filing for bankruptcy will mean losing all their assets, becoming ineligible for a credit card, and dealing with numerous other difficulties.

The article goes on to point out that most of our concerns are, in fact, untrue.

In reality, a Tennessee bankruptcy may be the most effective way for people to manage debt when other options, such as reducing expenses or negotiating a loan modification, just aren't a possibility. While bankruptcy may not be right for every situation, it can be a godsend for those who qualify.

Tennessee bankruptcy attorneys have worked with many clients who avoided filing until there was no other solution, leaving them with a rock-bottom credit score and foreclosed home. The sooner you file for bankruptcy, the sooner you can protect your house from the bank, begin repairing credit, and get back in control of your bills.

We often forget that bankruptcy was created for one reason: to help consumers. Here are Bankrate.com's top bankruptcy myths - and why they're simply not true.

Your credit will be forever tarnished

It's true that bankruptcy will remain on your credit report for up to 10 years. This concept frightens people. But considering most consumers who file have been missing payments and routinely approaching or exceeding their credit limit for years, bankruptcy probably isn't going to make that much of a difference. What bankruptcy can do, however, is allow you to make the necessary changes to start improving your credit. In fact, many bankruptcy clients receive credit card offers shortly after filing.

You'll lose your stuff

While Chapter 13 bankruptcy protects assets, Chapter 7 bankruptcy allows some items to be liquidated. This leads many people to assume they will automatically lose their personal possessions by filing for Chapter 7. In most cases, homes, cars, retirement funds, and many other items are protected by a list of exemptions determined by each state. In addition, any item that you continue making payments on will remain yours to keep.

Your filing will become public knowledge

Maybe one of the biggest deterrents for most potential bankruptcy filers is pride. They worry that somehow neighbors, co-workers, and acquaintances will find out and view them as a financial failure. While bankruptcy is a public legal proceeding, it's not like your name will be read out on the steps of the courthouse. Unless you're a famous celebrity, no one is going to find out you filed for bankruptcy. In fact, by nipping your financial problems in the bud before they cause long-lasting damage - such as the loss of your home to foreclosure - you're in a better position to privately solve your problems and move on before anyone notices.

Bankruptcy is simpler and more effective than most Americans realize. Ultimately it's your choice whether to file. By educating yourself about Tennessee bankruptcy, you'll have the information needed to make the right decision.