When you file bankruptcy in Tennessee, the court may well require you to go to credit counseling. Actually, Need Help Paying Bills recommends that you obtain the services of a credit counselor prior to filling bankruptcy so as to possibly avoid it.

Whether before or during bankruptcy, the National Bankruptcy Research Center and the Management International Financial Education Foundation state that the results of their joint study show that credit counseling can make it possible for you to overcome your debt problems while improving your credit report.

Advantages of credit counseling

Study participants reported the following three major advantages of credit counseling:

  1. They reduced the number of their delinquent accounts.
  2. They kept their credit card balances lower than they had prior to undergoing counseling.
  3. They were able to put off bankruptcy or sometimes even able to get out of debt without it.

Bankruptcy factors

Unfortunately, many people across the nation never recovered from the 2008 real estate crash. If this describes you, know that you are not alone. Bankruptcies have seen a major uptick during the past decade as people got laid off from their jobs and failed to find decent substitute employment. If you work in the construction industry or another industry related to real estate, including both residential and commercial real estate, you may well have found your job opportunities limited at best.

When you add ever rising health costs to a poor economy, you have the perfect storm for out-of-control credit card balances. It should come as no surprise to you that crushing credit card debt represents the number one reason why so many people find themselves in a position where bankruptcy becomes their only viable option. Credit counseling, however, may provide you with other options.

This is general educational information and not intended to provide legal advice.