While the national and global economy continues to be relatively strong, financial burdens are still everyday realities for many residents in Tennessee. If you find yourself cringing every time another bill or statement arrives, you are far from alone. One thing you might be starting to consider is pursuing debt relief via a bankruptcy. Before you make this choice, however, it is important to assess not only the amount of your debt but the type of debt you owe. Understanding this will help you choose the right path forward.
People in Tennessee who struggle to stay on top of their debt know how stressful this situation can be. Regardless of the reasons that contribute to a person's inability to pay bills and other debts, there should be a way to get help and be able to start over. For many consumers in the United States, a Chapter 7 bankruptcy or a Chapter 13 bankruptcy may offer this chance. For others, however, they may not even be able to afford a bankruptcy, precluding them from getting the very help they need.
If you are currently thinking about filing for bankruptcy in Tennessee, you were probably disappointed to hear that you were still liable for student loans. However, according to Forbes, this is not always the case. Forbes is clear that a discharge of student loans during bankruptcy filings is rare, but it is nonetheless a possible outcome.
Tennessee residents who have completed Chapter 13 bankruptcy should be aware that are lenders who are looking to take advantage of people who have previously filed for bankruptcy. One of the major signs that you may not be dealing with a reputable lender is that you are not asked in detail about your previous credit history. However, there are other ways to tell if a lender who does not have your best interests at heart is trying to entice you into signing a dishonest loan deal.
According to FindLaw, up until late 2005 bankruptcy judges could use their discretion to decide whether a debtor qualified for Chapter 7 bankruptcy. As a result, the majority of bankruptcy filers chose to file for Chapter 7 even if they were fully capable of repaying their debt under a Chapter 13 repayment plan. To weed out filers who can afford to repay some debt, all states, Tennessee included, have adopted filing criteria for Chapter 7.