When you file for Chapter 13 bankruptcy in Tennessee, you may only think about relieving your immediate financial problems. However, it is also a good idea to start thinking about how you can rebuild your finances after bankruptcy.
When it comes to bankruptcy, there are many options, but Chapter 13 makes the most sense for some people. There are a number of reasons why Chapter 13 can be so beneficial, and we will take a closer look at some of the benefits of Chapter 13 in this post. In Memphis, and across the state of Tennessee, too many people have allowed debt to hold them back. If you are struggling with debts that you cannot pay off, you should not hesitate to explore solutions that may be on the table.
Individuals that are just about to file for Chapter 13 bankruptcy may wonder how much flexibility they will have in paying their debts. You might want to prioritize paying off a house mortgage before you want to tackle a credit card bill. While Chapter 13 can help you give a fresh financial start in Tennessee, there are some steps in the bankruptcy process that you will not have a final say on, including which debts are to be paid first.
Some people, though drowning in debt, are afraid of the stigma of bankruptcy and will turn to other means to help raise money to pay their bills. They may turn to crowdfunding as a solution. While using crowdfunding sites like GoFundMe to raise money might seem like a simple way to alleviate financial problems and let you get back on your feet, Tennessee residents should be aware that crowdfunding is not a guaranteed way to pull out of financial straits and might even cost you more out of your own pocket.
Many aspiring or current entrepreneurs in Tennessee worry about the effects that bankruptcy may have on their ability to secure financing for their projects. However, there is more myth than fact to many of the ideas surrounding the relationship between debt restructuring and business loans.
When you file for Chapter 13 bankruptcy in Tennessee, you must agree to a repayment plan. This plan outlines how much you will pay back each creditor you have. It is your obligation to repay your debts and stick to the plan as part of your bankruptcy agreement. If you complete the plan, the court clears any remaining debt, and you get a fresh start. However, sometimes things do not go the way you want. If you end up unable to fulfill your obligations, the U.S. Courts explain you could file for a hardship discharge.
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.
Chapter 13 bankruptcy could be a powerful tool to restructure and limit the long-term impact of your debts. It could, in many cases, reduce financial risks, namely by limiting your creditors' rights to repossess the property you have offered them as collateral. Even though most Tennessee Chapter 13 bankruptcies proceed without incident, some debtors encounter problems keeping up with payments.
At Jimmy E. McElroy & Associates, we are proud of the work we do — and we like to think of it as more than just helping people file for bankruptcy. Just like our clients, we are members of the community we serve. Our primary goal is to help our Tennessee neighbors who might have overextended their finances to get back on their feet and back to pursuing their dreams.
Many people who file Chapter 13 bankruptcy fear they will not be able to successfully apply for a loan, or that they will only find lenders that require such high fees that it is not feasible to apply for financing. So when bankruptcy filers find a Tennessee lender who is not interested in their past credit history, it seems like they have found the answer to their problems. However, a lender who does not ask you about your past debt history may actually be bad news.