Before you go any further towards your goals to reduce and manage your debt, you should stop to congratulate yourself. By thinking seriously about bankruptcy or debt consolidation, you have already made a small victory that sets you apart from many Tennessee residents.
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.
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.
Once you start your Chapter 7 bankruptcy in Tennessee, you will learn a lot of new terms and vocabulary. Many of the processes will have legal terms or bankruptcy-specific language, and it is important that you understand what these things mean. One such phrase you will hear is the meeting of the creditors, which may also be called a 341 hearing, according to Bankrate.
It is bad enough when you reach the point where you realize you need to file bankruptcy, but when you also realize that you cannot afford to file bankruptcy in Tennessee, things become even worse. It is not uncommon to worry about affording bankruptcy. After all, you are having serious financial issues if you need to file. However, to turn things around and get out from under the debt, you have to find a way to afford filing.
Many Tennessee residents who file for bankruptcy hope that their case proceeds without any problems or detours. However, complications can result in the bankruptcy process. Perhaps a creditor does not approve of the court discharging a debt in your Chapter 7 case, or you may have an issue with a creditor. In such scenarios, an adversary proceeding may be filed.
As a Tennessee resident looking to give yourself a clean financial slate through filing for bankruptcy, you may be studying up on the process, and some of the information about what bankruptcy can do and what it entails may surprise you. You may, for example, not have realized that you will need to undergo credit counseling before you can move forward with your bankruptcy filing, and you may have questions about how to do so. At McElroy & Associates, we recognize that all bankruptcy filers must complete credit counseling before they can discharge any debts, and we have helped many people facing similar circumstances get their ducks in a row ahead of filing.
You might not think about bankruptcy as something you have to qualify for, but that is how it works in most cases. At Jimmy E. McElroy & Associates, we find that most people in Tennessee simply are not prepared for how exclusive the process is, especially when it comes to Chapter 7.
In the wake of a Tennessee bankruptcy filing, chances are, you are working hard to get your finances straightened out so that you can get the fresh start you desire. While filing for bankruptcy is often the first step in the process of rebuilding your financial situation, there are also steps you will need to take after your bankruptcy filing if you wish to get your affairs back in order. At McElroy & Associates, we recognize the critical nature of rebuilding your credit after bankruptcy, and we have helped many clients facing similar circumstances accomplish this and related objectives after a bankruptcy filing.