Tennessee Bankruptcy Lawyers Blog

More Tennessee residents are taking out personal loans to pay down debt - but while some borrowers are finding relief, others end up exacerbating their debt problem.

After falling out of favor during the recession, personal loans are once again being handed out by lenders for everything from kitchen remodels to debt consolidation, reports The Wall Street Journal.

With tighter lending standards and low real estate prices ruling out the possibility of a home equity loan for many homeowners, lenders see personal loans as a way to grow their business. Banks mailed out 424.8 million offers for personal loans in 2011, compared to just 290.5 million in 2010.

Personal loans don't come cheap, but they can be more affordable than credit cards. A typical interest rate for a borrower with good credit is between 9 and 15 percent for a five-year personal loan, whereas interest rates on credit cards are often more than 20 percent.

Some banks are sweetening the deal further by issuing "debt consolidation specials" with rates as low as 6.5 percent if customers agree to allow their payments to be directly deducted from their accounts.

For consumers committed to paying off debt, a personal loan may provide a solution. But Tennessee bankruptcy lawyers have also seen debt consolidation loans make a bad situation worse.

Many Americans have relied on credit cards to make ends meet during the recession. When our paychecks didn't cover car repairs, doctor's bills, or phone bills, we paid for them with plastic.

Unfortunately, leaning on the crutch of credit can be a hard habit to break. This is where Tennessee bankruptcy comes in handy.

People who take out debt consolidation loans or transfer credit card debt to a card with a lower rate often continue racking up debt. As debt continues to grow, the lower interest rate offers little relief.

Sadly, many people with personal loans find themselves burdened with new credit card debt on top of loan payments.

Consolidating debt is just another term for moving debt around. If debt is running your life, rearranging it isn't enough - you need to eliminate debt. Filing for bankruptcy in Tennessee provides the power to do just that.

Continue reading "Debt Consolidation Loans Make a Comeback, but Tennessee Bankruptcy May Offer Smarter Solution" »

With debt, as with so many other struggles, the first step to finding a solution is identifying what is causing the problem.

Tennessee bankruptcy attorneys often observe that - despite the different homes, jobs, and lives of the millions of Americans currently balancing large debt burdens - the root reasons for debt come down to just a handful of scenarios.

Bankrate.com recently highlighted the top causes of debt - some within our control, some not.

Money Management

Often debt accumulates as a result of consumer behaviors.

It should come as no surprise that many of us grow up with some degree of financial illiteracy. Schools today don't teach money management. Most of us were raised watching our parents pull out a credit card to make purchases. By the time we're in college, creditors are lining up to give us our first taste of plastic. The result is a lost generation of wayward spenders.

It all comes down to simple math: spend more than you earn, and you end up with debt.

Perhaps you spend more than usual during your holiday shopping spree but fail to save more than usual the next month. Maybe you don't have a budget, so you end up spending more some months than others, without ever recognizing the pattern. Maybe you don't have a savings plan, and surprise expenses force you to reach for the credit card.

Whatever the reason, debt ends up filling in the gap.

Organizing your financial information and creating a monthly spending plan is the best way to get expenses in line with earnings. It may not help you cover the bills, but at least you'll know where you stand.

Limited Income

More than ever, people are accumulating debt because of reduced pay or unemployment. When hours are cut or a job is eliminated, consumers feel they have no choice but to turn to credit to make ends meet.

The problem is that many workers who have recently become underemployed don't reduce spending because they view their situation as temporary. When a few weeks with a smaller paycheck turns into a few months, credit card debt snowballs. Throw payday loans with ultra-high interest rates into the mix, and you can really end up in a pickle.

Having an emergency savings to fall back on can prevent a short income loss from becoming a long-term burden. Unfortunately, few Americans have enough savings to make it longer than a month without pay.

When income is limited and debt is high, Tennessee bankruptcy can help people keep their heads above water. Unlike Chapter 13 - which requires a payment plan - Chapter 7 bankruptcy can eliminate debt for people with little income. Tennessee bankruptcy lawyers have seen many clients have their unsecured debt wiped out entirely.

Unexpected Expenses

Even a steady job can't protect us from surprise expenses. The reality is that people get divorced, sued, and sick or injured every day. The resulting legal and medical bills can easily total tens of thousands of dollars and bury consumers under a burden of debt for years.

But while it may not be feasible to prevent these expenses, we can control how we deal with them.

If possible, negotiating an affordable payment plan is a better solution than putting it all on a credit card. However, if a payment plan isn't an option, you need a plan for paying down that credit card balance. Making minimum payments and ignoring the bulk of debt is only going to make the problem worse.

Bankruptcy was developed specifically for helping consumers pay down unsecured debt caused by credit cards, medical bills, and legal fees. Filing for bankruptcy in Tennessee has the ability to eliminate debt at any point - but the sooner you file, the sooner you can lower bills and start keeping your hard-earned dollars for yourself.

Continue reading "Common Causes of Credit Card Debt in Tennessee " »

After a few years of cutting costs and trimming budgets, it appears that Tennessee consumers are once again slipping back into debt.

The average Tennessee resident now owes $24,043 in credit cards, personal loans, and auto loans - a $500 increase over last year, according to credit reporting agency Experian. Residents in Middle Tennessee areas including Nashville have a slightly higher average debt load of $24,152.

Higher levels of debt can mean one of two things: Either consumers are feeling more confident in their ability to spend, or they're falling back into the bad habit of spending more than they're earning.

Some financial experts fear it's the latter.

Those who have struggled to stay afloat since the recession arrived may finally be falling behind. With costs rising and wages falling, people who were formerly living paycheck-to-paycheck are falling back on credit cards.

According to The Tennessean, U.S. wages rose just 0.9 percent in 2011, while inflation increased by 3.2 percent. Savings dropped from 5.3 percent in 2010 to 4.4 percent in 2011.

But despite the recent return to debt, the average Tennessee consumer still managed to reduce personal debt by $2,000 between 2007 and 2010. That's compared to just an $800 reduction by consumers nationwide.

A portion of the debt decrease may be due to bankruptcy filings. Tennessee had the country's third-highest personal bankruptcy rate last year, according to the article.

Unlike credit counseling and debt consolidation, bankruptcy is the only debt-fighting tool legally created with the consumer in mind. Filing for bankruptcy in Tennessee has the power to substantially reduce or eliminate debt, stop wage garnishments, and halt harassment from debt collection companies.

Of course, some of the state's lowered debt levels can be attributed to consumers prioritizing their credit card payments over mortgage payments - a practice that can eventually result in foreclose.

Homeowners who qualify for Chapter 13 bankruptcy can kill two birds with one stone. Chapter 13 legally stops foreclosure while setting up a payment plan to help consumers lower debt. After the mandatory 3-5 years, any remaining debt is discharged free and clear.

The bad news is that the economy may continue to get worse before it gets better. The good news is that Tennessee bankruptcy can allow consumers to do something about it.

Continue reading "As More Consumers Slip Back Into Debt, Tennessee Bankruptcy Offers a Solution" »

Think the top cause of divorces and breakups is infidelity? Think again.
It turns out that financial unfaithfulness is one of the leading reasons for relationship problems.

Yet more than 80 percent of married people copped to hiding financial information from a spouse - be it a credit card balance, a purchase, or a separate bank account, according to a survey by CESI Debt Solutions. In a poll by the National Endowment for Financial Education, 16 percent of those who lied about finances said their money problems resulted in divorce.

Perhaps the best Valentine's Day gift for your significant other is not spending money on that box of chocolates.

Even better, perhaps you can take the time to sit down and talk about solutions to your debt - such as filing for bankruptcy in Tennessee. It's not the most romantic conversation, but it just might save your marriage.

While any amount of financial difficulty can put a strain on a relationship, it's hidden debt - for instance, when one spouse makes secret purchases or maintains a separate credit card - that takes the biggest toll.

Time and time again, Tennessee bankruptcy lawyers have seen couples become buried under a sea of debt because one partner kept secrets instead of seeking help.

As time goes on, the secret-keeping partner's financial troubles may snowball as they attempt to manage finances alone. Bearing the burden can leave them feeling overwhelmed, depressed, and lonely. Meanwhile, the spouse being lied to often knows something is up - and when the secret is out, they are likely to be resentful, angry, and suspicious of their partner's activities.

In worst case scenarios, people have opened credit card accounts in their spouse's name. However, just being married can make you liable for your partner's debt in most states, whether or not your name is affixed to their bills.

While there's no easy solution to existing debt, talking about the problem is the only way to make progress. Living in denial is no way to spend a marriage.

Even if one person handles the finances, both partners have the right to know how the couple's money is being spent and saved. Two heads are better than one, and handling a stressful financial situation together - as opposed to separately - can provide the combination of brainpower and moral support needed to get through a difficult time.

When lowering debt requires much more than simply rearranging a budget, Tennessee bankruptcy may be a solution.

In the meantime, here's some advice from CNN Money on preventing and dealing with problems money in a relationship.

Get Your Priorities Straight

Engaged? Make time to discuss your current financial situations and future financial goals as a couple before you walk down the aisle. Marriage complicates financial matters. While it's definitely possible to overcome debt together, most people never overcome financial incompatibility. This is the time to make sure you are on the same page about financial priorities, as your money moves as individuals will affect you both once you're legally married.

Look for Financial Red Flags

Debt has a tendency to keep growing. The sooner you both acknowledge a problem forming, the sooner you can figure out how to solve it. Have you noticed your partner relying on credit lately? Are new bills showing up, some for purchases you didn't know about? Are there shopping bags in the closet? Does your spouse get irritable when you ask questions about your finances? You may need to stage a financial intervention. While many people hide their financial problems because they're scared or ashamed, bankruptcy can often eliminate debts in the toughest of situations.

Hold Family Money Meetings

Prevention is the best medicine. If you make a point from the beginning of your marriage to go over your finances together once every month, quarter, or whatever timeline works for you, an incentive for honesty is created. It's fine if one partner handles financial tasks, but both should be aware of how the money is being spent. One way to start is by getting copies of your free annual credit report.

Continue reading "Hidden Credit Card Debt Strains Tennessee Marriages" »

In the popular game Monopoly, a bank error in your favor usually works to your advantage. In real life, that's unfortunately not the case.

In a disturbing trend, a growing number of homeowners are finding themselves in foreclosure after a bank mistakenly marked their mortgage as delinquent. As a result, borrowers who have never missed a payment - and, in some cases, have paid off their homes in full - are ending up with tarnished credit and in lengthy and expensive court battles to save their homes.

Much of the problem stems from improper recordkeeping during the real estate boom times of the early-to-mid-2000s, when Wall Street pushed lenders to process mortgages quickly and sloppily so they could be broken up and sold to investors all over the globe.

Crucial legal procedures were often overlooked. Later, these same companies began forging documents and faking titles so they could foreclose on properties despite a lack of proper mortgage documentation.

Tennessee bankruptcy lawyers are aware of several cases in which a homeowner applied for a loan modification, only to be turned down because the bank couldn't locate who held the actual mortgage note.

Without clean records of home loans, banks are making mistake after mistake. It's currently estimated that nearly 13 percent of homes in the United States are either in foreclosure or at least 30 days delinquent. Since there are no statistics on wrongful foreclosures, it's impossible to gauge how many of those homeowners may be falsely accused.

In a recent Reuters article, one family refinanced their home to take advantage of a lower rate, only to learn later that the bank had never closed out the original loan. Even though the homeowners had been making their payments on time, they ended up in foreclosure.

In another scenario, a bank's computer system mistakenly marked a Utah woman delinquent on a mortgage for a house she sold years earlier. By the time the woman's accountant got wind of the problem, it had already been reported to credit bureaus and damaged the woman's credit score.

The majority of foreclosures still occur because homeowners can't afford to make payments, whether it's due to an unexpected expense, a surprise job loss, or a mountain of credit card debt. But now it appears that even following the rules may not get you off the hook.

No matter how it happens, foreclosure has the ability to ruin your credit, prevent you from qualifying for affordable rates or new loans, and, of course, strip you of assets like your home. On top of your original missed payments, you may also owe fees and expenses from your delinquency.

In many cases, Tennessee bankruptcy may be a saving grace.

Filing for Chapter 13 bankruptcy can legally halt foreclosure while you get the kinks worked out. Meanwhile, a bankruptcy court can establish a repayment plan for unsecured debts like credit card bills, which can relieve some of the financial pressure for homeowners previously struggling to make loan payments.

Continue reading "Tennessee Bankruptcy May Relieve Rise in Foreclosures Caused by Bank Errors " »

When it's a challenge for the most seasoned business professionals to land a well-paying job, you can only imagine how difficult it is for today's recent college graduates.

Gone are the days when a four-year education equaled job security. More than a shiny new degree or passion for one's particular field, employers are looking for solid work experience.

Tennessee bankruptcy lawyers have seen an increasing number of well-educated young people struggling in today's economy. Foreclosures are on the rise in Tennessee neighborhoods, and so is unemployment. As a result, many recent college grads quickly end up over their heads with debt.

In many cases, considering bankruptcy in Tennessee may be a smart idea.
That said, bankruptcy doesn't work for everyone. That's why consulting with an experienced bankruptcy lawyer should be your first move if you're experiencing debt trouble.

Bankruptcy's effectiveness depends on factors that include income level, types of debt, amount of current and expected debt, and your personal situation. A bankruptcy lawyer can evaluate this information to determine your best course of action.

Perhaps the most appealing aspect of bankruptcy is that it was designed to help the consumer. Nonprofit credit card counseling programs may offer some guidance, but they do nothing to legally lower debt. For-profit programs often make the problem worse by requiring substantial fees.

Debt settlement companies also cost money and may make your credit worse by recommending that you stop paying your debts. The truth is, getting a lender to sit down with you and negotiate a repayment plan is not likely to happen.

Student loans are a difficult debt burden to unload. In fact, the only way to discharge student debts is to prove you have an "undue burden" or are otherwise physically unable to work due to injury or illness. But that's not how bankruptcy works.

What bankruptcy can do is relieve pressure from unsecured debts - i.e., your credit card balance, medical bills, and other types of loans. Many young Tennessee bankruptcy attorney clients have high unsecured debt because student loans and car payments have left them with little cash leftover to pay other bills. Filing for bankruptcy can free up money for your loan payments, making the rest of your bills more affordable.

If you're unemployed or underemployed, an underutilized two-year-old federal provision known as the Income-Based Repayment program may also help, according to the Associated Press.

Aimed at grads with little or no income that are stuck paying off federal loans, the program lets enrollees pay back debt over either 10 or 25 years if they take a public service job. Eligibility can be determined with a debt vs. income calculator on the Department of Education's website.

There are some cons, however. If your student loans came from a bank, not the Fed, you're out of luck. Also, it's possible that repayment plans can be recalculated based on your annual tax returns - perhaps resulting in higher payments. Selecting the 25-year repayment option will also result in higher interest rates, though remaining debt will eventually be discharged.

Continue reading "Recent Grads Considering Tennessee Bankruptcy Amid High Unemployment and Poor Economy " »

One would assume that consumer protection laws are intended to do just that - protect consumers. But a Supreme Court ruling issued earlier this month seems to indicate otherwise.

According to SmartMoney, the ruling determines that credit card holders bound by a mandatory arbitration clause can't dispute grievances such as charges or fees - even if those charges or fees appear to be in violation of the Credit CARD Act consumer protection reform set into law in 2010.

Why should this matter to the average cardholder? Because binding arbitration clauses are common in credit card agreements, though most consumers don't even realize their card came with one.

These clauses require that credit card users go through the private arbitration process, as opposed to a jury trial, whether a consumer wants to take a credit card issuer to court or a credit issuer wants to take a consumer to court.

Critics of the 8-to-1 vote are concerned that it will set precedence for big banks and credit card issuers to add more restrictive arbitration language in their fine print.

Consumers are at a significant disadvantage when it comes to arbitration because they are less likely to be able to afford a private arbitrator. Furthermore, many believe companies that handle arbitration are biased in favor of credit card issuers because the issuers are regular clients with billions of dollars to spend. Arbitrators will likely never see a consumer again, but a bank may be a regular customer.

Tennessee bankruptcy lawyers note that it's extremely rare for a consumer to win an arbitration case against a large credit card company. In fact, data in California indicates that only 4 percent of cases between 2003 and 2007 were decided in favor of consumers.

So how does this ruling affect the average credit card holder?

Fortunately most of us won't end up going through arbitration. But the more credit card debt we carry, the more likely it becomes. If you're being hounded by debt collection companies on a regular basis for debts you haven't paid in years, you increase the risk of being forced into arbitration. Being a victim of identity theft also increases your chances.

In addition to preventing consumers from suing in court, the ruling also appears to prevent consumers from joining class act lawsuits against their credit card issuer.

It looks like consumer protection today isn't all it's cracked up to be. This is where Tennessee bankruptcy comes into play. Unlike the latest credit card laws, bankruptcy laws are guaranteed to legally protect consumers, not big businesses.

For folks with mountains of credit card debt, filing for bankruptcy in Tennessee can provide a fresh start. It can stop foreclosure, end wage garnishments, and help you start rebuilding your credit.

The best way to insulate yourself from damage due to surprise interest rate hikes, unfair fees, or creditor lawsuits is to wean yourself off debt.

Continue reading "Amid Weakening Consumer Credit Protection Laws, Tennessee Bankruptcy Can Help" »

A pair of studies released this month look at characteristics that may predict our credit scores - from the region in which we reside to the e-mail address we use.

Findings by free credit score service Credit Karma indicate G-mail users seem to have better credit than Yahoo users. Regionally, plains residents tend to have higher credit scores than those who live in the south or west, according to MSNBC.com.

While it's certainly interesting information, it's also a bit misleading. Credit scores are ultimately determined by behavior, not the e-mail server you use. A history of timely payments, the amount you pay each month, and how much debt you carry relative to your credit limit are some of the biggest components of your score.

Likewise, bankruptcy is also a behavior that affects your credit score. But while some folks believe bankruptcy ruins credit, the reality is that by the time you file for a Tennessee bankruptcy, chances are your credit history is about as tarnished as it gets. Consumers who have spent years making minimum payments, missing due dates, and doing battle with creditors are not going to have very good scores.

By filing for bankruptcy in Tennessee, these consumers can break free of the credit card cycle so that, when their behavior improves, their score is finally able to rise. After all, bankruptcy laws were designed with the consumer in mind.

Let's take a look at some factors behind the best and worst credit card scores, according to the surveys. Keep in mind that credit scores range from 501 to 900, with a higher number indicating a better score.

E-mail Users' Credit Scores (data from Credit Karma)

Yahoo: 641
AOL: 658
Hotmail: 660
MSN: 662
Gmail: 678
Comcast: 686
BellSouth: 695

Now let's take a look at how location relates to credit.

Top Cities with Highest Average Credit Scores (data from Experian via MSNBC.com)

Wausalu, WI: 789
Minneapolis, MN: 787
Madison, WI: 785
Cedar Rapids, IA: 781
San Francisco, CA: 781
Green Bay, WI: 780
Boston, MA: 779
Peoria, IL: 778
Sioux Falls, ND: 778
La Crosse, WI: 777

Top Cities with Lowest Average Credit Scores

Harlingen, TX: 686
Jackson, MS: 701
Corpus Christi, TX: 702
Monroe, LA: 706
Shreveport, LA: 706
Augusta, GA: 709
Bakersfield, CA: 709
Las Vegas, NV: 709
Tyler, TX: 710
El Paso, TX: 710

The good news is that, regardless of where you live, what you do for work, or where your e-mail goes, you have the ability to fix your credit. If you've spent years with a poor credit score caused by debt problems, you may want to consider a Tennessee bankruptcy. Bankruptcy can offer a chance to shed your old debts for a fresh start.

Continue reading "Consumers with Bad Credit Could Benefit From Tennessee Bankruptcy" »

Tennessee homeowners hoping to catch a break from falling real estate prices may be in for a disappointment.

Declining home values are resulting in growing foreclosure rates across the state, according to the latest numbers from CoreLogic.

Nearly 2 percent of homes in Nashville were foreclosed on in October 2011 - a 30 percent increase over the previous year. Things may be even worse in Memphis, where the foreclosure rate had risen to 2.69 by September 2011.

Statewide, Tennessee has a foreclosure rate of 2.05 percent, which is up from 1.59 percent a year ago but still below the national average of 3.48 percent.

Many of these foreclosures could have been avoided with Tennessee bankruptcy. For some, there may still be time.

Experts predict that a tsunami-like wave of foreclosures could soon wash over the nation.

Currently, 1.5 million homes are in foreclosure. But there are also 3.5 million properties in delinquency and 10 million homes that are underwater - i.e., homeowners are shouldering debts much larger than the values of their properties. As banks and real estate firms release more foreclosed properties onto the market, housing prices will be driven down further.

No one wants to hear the dreaded "F" word. But an unfortunate side effect of today's real estate market is that more folks are accepting foreclosure as the norm. In many instances, delinquent homeowners are simply walking away and allowing the bank to take their home.

But foreclosure doesn't only take away the roof over your head. In some cases, it also takes away your future. Foreclosure puts a black mark on your credit that can prevent you from buying future homes or cars, renting a place to live, or even getting hired for a job.

Filing for Chapter 13 bankruptcy can legally stop foreclosure - even after the process has begun - and allow you to stay in your home while you get back on your feet.

Being underwater in your mortgage alone may not be reason to file for bankruptcy. But many Tennessee bankruptcy lawyer clients end up in mortgage trouble because of other debts - namely credit card debt, medical bills, and wage garnishments.

Bankruptcy can eliminate the other financial pressures so you can more comfortably make house payments.

Continue reading "Real Estate Data Shows Tennessee Foreclosure on the Rise in Nashville, Memphis Areas" »

Often times, financial pros recommend debt settlement as a solution to overwhelming debt. Take a recent story in SmartMoney for instance.

But while the above article offers some decent advice, it fails to mention that debt settlement is only effective for a small number of consumers each year. Filing for Tennessee bankruptcy, on the other hand, is a solution that can discharge debts in nearly every situation - and with no strings attached.

Debt settlement assumes that a consumer can afford to keep up with a payment plan, as well as fees charged by the debt settlement firm. Since most companies require clients to stop paying creditors, you may also incur lasting damage to your credit score.

Compare this with bankruptcy, which was created specifically to help struggling consumers. The federal government recognizes that consumers make financial mistakes - and that inevitable economic downturns make these mistakes even more likely.

Filing has the ability wipe out debt either partially or completely, depending on the type of bankruptcy. Instead of placing demands on the consumer, the bankruptcy system places demands on businesses and the government. The assumption is that these larger entities can absorb the loss of a few bucks a lot more easily than hard-working Americans trying to put food on the table.

Tennessee bankruptcy lawyers have seen bankruptcy provide a new chance for hundreds of clients struggling with joblessness, overwhelming medical bills, underwater mortgages and immense credit card debt.

It's not easy to get out of debt, and many creditors aren't willing to negotiate a payment plan that gives consumers a fair shake. With a Tennessee bankruptcy, you won't have to worry about dealing with biased creditors and lenders. Bankruptcy rewards consumers trying to turn their financial life around.

If you'd like to consider all your options before bankruptcy, SmartMoney offers the following alternatives:

Research Your Options

Thinking of settling your debt or filing for bankruptcy? First make sure your financial troubles can't be solved by aggressively trimming your budget. What can you cut out to squeeze out some extra cash each month? Can you put some of your belongings on eBay or Craigslist? Can you take on a second part-time job? How about locating a free or low-cost debt counselor?

Prepare to Take Action

If you're ready to take on your debt, you need to build a case to prove it's unmanageable. Put all your financial documents in one place. Have you been laid off? Do you have expensive medical bills? Find the documentation that proves it. In some cases, simply getting organized may help you discover a better system for paying the bills.

Proceed Carefully

For debt settlement to work, a lot of things have to happen. Consumers need to be completely honest about their debt situation - no fudging the truth or leaving out information. You must make sure that negotiated payments are affordable and that you won't damage credit by intentionally skipping payments - otherwise you're just going to increase debt woes by racking up debt settlement fees and wrecking your credit score. Finally, ensure that your debt settlement company or credit counselor isn't a scam by confirming their credibility - for instance, by checking with the Better Business Bureau.

Of course, the above advice still assumes that creditors are going to work with consumers. Keep in mind that credit card companies and lenders can get back more of their money by garnishing your wages or foreclosing on your home than they can by settling. They simply don't have the motivation.

Bankruptcy legally requires creditors to deal with your debts. But you won't have to deal with creditors. Your Tennessee bankruptcy attorney and a court-appointed bankruptcy trustee will deal with them for you.

Continue reading "Debt Settlement Works For Some, While Tennessee Bankruptcy Works For Many" »

This fall, thousands of young people set up camp in cities nationwide to protest economic and social injustice. While the Occupy movement has since faded due to increased police presence, angry city officials, and dropping temperatures, the questions it raised remain unanswered.

The young Americans who carried signs, shouted slogans, slept on lawns and benches, and sought change have one thing in common. They're frustrated by their limited opportunities for success.

In essence, the Occupy movement is about finances.

Today's bright young college graduates are entering the real world swimming in student debt - sometimes hundreds of thousands of dollars worth - and walking into a job market that simply doesn't need them.

They can't find work, they can't find an affordable place to live, they can't keep up with their mounting credit card debt - they can't find the footing they need to get their life started. But bankruptcy in Tennessee may offer a solution.

Tennessee bankruptcy lawyers have helped numerous clients find a fresh start. When bills are high and income is low, waiting for an opportunity to find you isn't an option. You need to make something happen. Bankruptcy is a way to take action.

From the moment consumers file for bankruptcy, creditors are prevented from making harassing phone calls - and from contacting debtors altogether. For those with an income level that qualifies for Chapter 7 bankruptcy, debts are wiped out completely. While giving up assets is sometimes required, many filers are eligible for exceptions and exemptions.

Sometimes eliminating the burden of debt, interest, and late fees is enough to help folks get their lives on track. Here's some additional advice that may be useful to young people looking for financial solutions, from a recent column in Kiplinger:

Look Before You Leap

Every year thousands of recent grads head to major metropolitan cities like New York and Los Angeles in hopes of hitting the big time. But before you make a life-changing move, do your homework. Not all cities today have the same employment rates, rent prices, or quality of life. Instead of looking for glamour, look for real job opportunities and a low cost of living. This summer Forbes.com looked at the best cities for young professionals. Des Moines, Iowa boasts a 5.8 percent unemployment rate, while jobs in Raleigh, North Carolina are expected to grow by at least 2 percent annually.

Lower Student Loans

You shouldn't have to spend the rest of your life paying off your education - that's not the point! If a scholarship is out of the question, alternatives like gradual payments or repayment plans based on your income level can make college more affordable. If you're looking at college choices, it may be worthwhile to choose an in-state school to avoid outrageous out-of-state tuition. Taking the bulk of your general education classes at a community college or public university can lower costs significantly, leaving the option open to transfer to a private school for your major-specific courses.

Find Affordable Health Insurance

Even young people need health care. Health insurance helps guarantee you won't be stuck with enormous debt if you need to see a doctor, purchase a prescription, or spend a night in the ER. Again, you may be able to save money on health insurance premiums if you live in a more affordable city. Those with certain pre-existing conditions or at an elevated medical risk can stay on their parents' insurance until age 26.

Continue reading "Young Tennessee Residents in Need of Financial Help May Benefit from Bankruptcy in 2012" »

More Tennessee homeowners are walking away from their homes - and walking into a new set of problems.

Thanks to plummeting home prices, a growing number of borrowers now owe more on their mortgages than their homes are currently worth. With no way to downsize without taking a loss, some are choosing to strategically default. In other words, even though these homeowners can afford to make loan payments, they're opting to save their much-needed dollars by walking away from their home and mortgage.

But before you seek a short-term fix, Tennessee bankruptcy lawyers recommend considering how it will affect you and your finances in the long run.

Yes, cutting out mortgage payments will leave homeowners with some extra money each month - a helpful luxury amid rising grocery and gas prices. But so would eliminating some of the other debts - from credit card debt to medical bills - that are causing so many Americans to struggle with finances.

Filing for bankruptcy can preserve the roof over your head while relieving the pressure of other payments. It also offers something else that strategic default doesn't - protection.

Walking away from a debt obligation severely damages credit, lowers your chances of receiving future loans, and put you at risk for legal retribution by lenders. Now that walking away from mortgages is becoming a trend, lenders are taking it very seriously - and many are willing to take borrowers to court to seek a full repayment.

A recent article by MSNBC.com suggests that people are finding it easy to walk away from their obligation because getting a home loan today is so impersonal. Many of us don't know who owns our loan. When we try to qualify for a loan modification, we can't find the right person to handle our application. What can be the harm in defaulting when you're not even sure who you're defaulting on?

But just because something is easy to do doesn't mean it's the right thing to do - morally or financially.

Bankruptcy, unlike the lending process, was created with the consumer in mind. Its entire purpose is to help struggling US citizens. When you look into your bankruptcy options, you'll be able to discuss your finances with a real live Tennessee bankruptcy attorney, not just some random employee at a mega-bank.

In the case of Chapter 7 bankruptcy, homeowners can wipe out debts completely. If you don't qualify for Chapter 7, Chapter 13 bankruptcy can help by creating an affordable repayment plan for unsecured debts. When other obligations are lowered, many Tennessee bankruptcy attorney clients find their mortgage becomes less of a burden.

Continue reading "Chapter 13 Can Help Tennessee Homeowners Thinking Of Walking Away From Mortgage" »

For many of us, family comes first. But what happens when helping out your relatives puts you in a financial pickle yourself?

Society often looks at debt as a self-inflicted problem, but many times it's the result of trying to do a good deed, whether it's taking care of parents or grandparents or co-signing a loan for a cousin who's fallen on hard times.

Problem is, when we experience financial difficulty ourselves - say, due to a lost job or medical expense - there's no money left in the bank. As a result, we turn to credit cards and wind up with our own debt burden.

If you're experiencing problems with family and money, Tennessee bankruptcy attorneys may be able to help. Depending on your financial situation, you might benefit from filing for either Chapter 7 or Chapter 13 bankruptcy.

The bankruptcy you file for depends largely on income level. Chapter 7, which has the ability to discharge debt, is mostly reserved for folks earning little to no income. If you've recently lost a job, amassed large medical debts due to injury or illness, or are a single parent struggling to make ends meet, you may qualify for a Chapter 7 bankruptcy in Tennessee.

But what if you have a decent job, but family-incurred debt is making it impossible to pay the mortgage and other bills? Chapter 13 bankruptcy might not historically be as popular as Chapter 7, but it's becoming more widely used thanks to its ability to stop foreclosure. With Chapter 13, you'll need to commit to a debt repayment plan over a period of 3-5 years. In the process, though, assets like your home and vehicles will be legally protected.

Family and money sometimes don't mix, as a recent Wall Street Journal article illustrates. If a relative dies unexpectedly, those closest to them - like spouse and kids - become responsible for their financial burden. When they can't handle it alone, other relatives often jump in to help, from parents to aunts and uncles.

In one case, a man was looking forward to retirement when his son-in-law suddenly died of an aneurism, leaving his wife - the man's daughter - responsible for the hundreds of thousands of dollars he'd borrowed for a business start-up. The son-in-law didn't have insurance, and the couple had three young kids. There went the man's peaceful retirement.

In the article, a financial planner urges people to consider what would happen if family members were to die unexpectedly. Would it leave you with their debts? Would you be responsible for the loan you co-signed?

There's nothing wrong with wanted to take care of your own. But you may want to think about encouraging relatives to get life insurance, or purchasing long-term-care insurance for your elderly family members.

Continue reading " Helping Family with Financial Burdens Leads Some to Seek Tennessee Bankruptcy" »

You can't really solve a problem until you admit you have a problem in the first place. For many Americans, this means coming to terms with the fact that we need help with unmanageable credit card debt.

There's no doubt that the majority of Americans are struggling with debt - it's estimated that the average U.S. family carries $4,200 of it, though many folks have much more - yet few are willing to admit to having a problem. In fact, a recent Bankrate.com survey found that 9 in 10 Americans say debt does not interfere with their lives.

Whether the problem is gambling, alcoholism, or credit card spending, denial is often the biggest barrier keeping us from making a life-improving change.

Time and time again, our Tennessee bankruptcy attorneys have seen people make their money problems worse by ignoring the issue, whether it's by underestimating what they owe or holding out hope for a miracle that will magically wipe out debt.

The only way to get out of debt is to take action. If you're not doing something to solve your problem - or if your solutions just aren't working - it's time to consider seeking help from a financial professional. Bankruptcy was created by the government specifically to provide people the opportunity to legally eliminate debt.

You can't ignore your debt burden forever. Do you want hidden fees, foreclosure notices, debt collection phone calls, and wage garnishments to be running your life? You don't have to let it happen.

Bankrate.com features a list of the biggest signs you have a serious debt problem. Find yourself identifying with many of the signs on the list? Filing for bankruptcy in Tennessee may be able to help.

You Don't Know How Much You Owe
Have you conveniently been avoiding the little box on your credit card bill that tells you your balance? Paying just the minimum may help you avoid a late fee - at least momentarily - but it doesn't do anything to stop your debt from growing.

Approaching Your Credit Limit is the Norm
You know that exceeding your credit limit will cost you. But if you're routinely approaching the limit, you're not doing yourself any favors. Much of your credit score is determined by your credit utilization, or the ratio of your debt to your credit limit. Anything over 30% will hurt your score. If it's a one-time scenario, you can probably recover - but if it's happening almost every month, you're carrying too much debt.

You Routinely Open New Credit Lines to Transfer Debt
Do you frequently take advantage of those 0% balance transfer offers? If you transfer debt to a much lower rate and proceed to pay off your balance before the introductory period ends, there's no problem. But if you often find yourself carrying debt and paying interest on yet another credit card, maybe it's time you stopped shifting your debt around and started actually paying it down.

You Almost Never Pay More than the Minimum
The No. 1 sign that you have too much debt is regular reliance on minimum payments. Many credit cards require such low minimums that you may only be covering interest. Can't afford to pay more than 2.5% most months? By failing to actually pay off your balance, you're allowing your debt to grow unchecked.

Debt Is Growing; Income Is Shrinking
When you're dealing with job loss, medical bills, or other overwhelming expenses, you need money. That's why most folks in these situations turn to credit cards. The problem is that by accumulating debt, you actually end up spending even more money thanks to interest and fees. If you're struggling at your current income level but your debt is getting bigger and bigger, getting it under control may require outside help.

Continue reading "Consumers in Denial about Credit Card Debt May Find Help with Tennessee Bankruptcy" »

Being young doesn't always mean being carefree - especially in today's economic climate.

With college tuition fees and the cost-of-living rising steadily, young adults today are suffering from more financial pressure than they have in generations. Couple these costs with the fact that most recent college grads are faced with a sluggish and brutally competitive job market, and you get a battle that feels like it just can't be won.

As a result, say Tennessee bankruptcy lawyers, many people in their 20s are starting out their adult lives with the burden of debt.

Credit card companies routinely push their products on college students who can't afford them. Meanwhile, young folks can't really rely on their parents for guidance and advice because adults of all ages are suffering from the same problem: spending more than we earn with the help of credit cards, then getting stuck with growing debt thanks to high interest rates and hidden fees.

Yet there's a solution that many young people overlook: filing for bankruptcy. Young adults often have a negative perception of bankruptcy because it seems extreme - and they may have heard it can't eliminate college loan debt. While it's true that bankruptcy can't make your school loans disappear, it does have the power to wipe out unsecured debt like your credit card balance.

For most young people, credit card debt is a problem that only gets bigger. Without a well-paying job, you may only be able to make minimum payments. Without years of responsible credit experience to your name, you may only qualify for high interest rates. The combination of low payments and high rates leads to a balance that grows out of control. Before long, you've got debt collection companies calling and wages being garnished from your already-too-small paycheck.

By filing for bankruptcy in Tennessee, many clients are finally able to pay more than the minimum payment on credit cards, make on-time payments, and get a handle on debt. With the financial burden lifted from your shoulders, you can start worrying about what really matters: finding that well-paying job and moving on with your life.

Never has there been such a significant gap between the earnings of the young and old, according to a recent story on MSNBC.com. Adults over 65 enjoyed a median net worth of just under $180,000 in 2009 - an increase of 42% since 1984. Meanwhile, people under the age of 35 had a net worth of $3,662. That's a decrease of 68%.

Part of the discrepancy is due to home ownership. Since the majority of older adults purchased a home before 1986, the gains received during the real estate boom in the 1990s offset many of the losses we've seen since. Young adults, on the other hand, either purchased at the peak of the market - leaving many struggling with high payments and little equity or, worse, a credit-wrecking foreclosure - or have yet to buy a home.

While all ages are suffering from the poor job market, older adults are more likely to have an established career and reputation.

Life isn't always fair when it comes to finances. But if unmanageable debt is holding you back, you don't have to put up with it. Tennessee bankruptcy is one tool that can help you make a change.

Continue reading "More Young Adults Struggle with Debt in Tennessee Compared to Older Consumers" »