If you decide that filing bankruptcy in Tennessee is the only option to your personal financial troubles, then you will next have to decide which type of bankruptcy to file. Your options are Chapter 7 and Chapter 13. Each offers distinct advantages and disadvantages, so you have to think about your personal situation when making the choice.
Declaring bankruptcy is not the end of the world. Although it is a common fear among many people that financial lenders will now look at them as major financial risks as a result of bankruptcy, the fact that you have gone bankrupt will not shut the doors of every financial lender to you. You still have ways that you can present a good case for yourself at your local Tennessee bank or lender.
Deciding to file for bankruptcy is not always an easy choice. Many Americans become buried beneath medical expenses, mortgages, credit card debt and other bills and run to bankruptcy as a way to find freedom from their financial stress. Part of this stress may stem from harassing creditor calls, who in some cases, threaten people with wage garnishments, lawsuits and repossession of property if debtors fail to make payments. Once people file their Chapter 13 paperwork, however, it can release them from creditors’ attempts to collect past due debt while the bankruptcy is being processed.
As someone who is currently navigating your way through a Tennessee bankruptcy case, you are probably trying to find out as much as possible about how your filing will affect your life, and how it will help you regain control of your finances. It is also important, however, that you determine how filing for bankruptcy will impact your taxes. At McElroy & Associates, we recognize that filing for bankruptcy will affect how you file your taxes, and we have helped many clients facing this and related issues find solutions that meet their needs.
Along with the cost of high-deductible insurance plans, mounting medical bills are a considerable worry for families with an average income. An accumulation of medical bills is certainly not the only reason people consider filing for bankruptcy protection, but healthcare-related debts prompt hundreds of thousands to seek relief.
If you are having trouble paying your debts in Tennessee and have falling behind in payments, your creditors will aggressively approach you to try to get you to pay. At this point, you may be thinking of filing bankruptcy, but you may have another option. You can try to negotiate a settlement with your creditors.