Tennessee Bankruptcy Lawyers Blog

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" »

Dozens of phone calls a day, threatening messages on the answering machine, stacks of letters in the mailbox - sound familiar? It's no wonder that the typical debtor experiences some degree of psychological trauma from the harassment of collection agencies.

Debt collection companies don't care about feelings. They don't care that the economy has forced Americans into debt. All they know is that a barrage of phone calls is an easy way to get debtors to surrender into coughing up cash they can't afford.

A recent Wall Street Journal story offers advice on how to limit headaches caused by the most common collection tactics. That's all well and good, but Tennessee bankruptcy lawyers believe there's an even better way to limit psychological damage - avoiding the problem in the first place.

Did you know that when you file for bankruptcy in Tennessee, harassment from collection companies stops immediately? The moment your case is opened, agencies are notified to cease all direct communications with debtors. From that point forward, the only contact between you and bill collectors will happen in court.

When most people think of filing for bankruptcy, they think of eliminating debt. But that's only one benefit of filing. Bankruptcy also has the ability to stop foreclosure, end wage garnishment, and, yes, even put a halt to harassing phone calls and e-mails. In short, bankruptcy can be the breath of fresh air you need.

Many debtors make the mistake of believing bill collectors will eventually give up. Not so. To understand debt collection agencies, you must understand their incentives. These people are being paid to wrangle up money for lenders. They don't care about your well-being. They don't want to negotiate with you, strike a deal, or find a debt management solution simply because it doesn't benefit them to do so.

Often times, the harassment becomes so unbearable that consumers make a minimum payment just to (temporarily) quiet the relentless collection calls. Unfortunately, this payment often stretches finances enough to lead to more debt, more interest and fees, and more phone calls.

The aforementioned Wall Street Journal article makes some interesting points. In it, a man getting up to 50 collection calls a day employed a caller ID machine with a ring controller to get some peace and quiet from debt collectors. By freeing himself from harassment, he was able to think clearly enough to achieve a 69% reduction in $54,000 of credit card debt. But most people aren't so persistent - or so lucky.

To make matters worse, many Tennessee debtors are falling victim to debt relief companies. These businesses claim to work on your behalf to lower debt, but they won't do it for free. Again, it always comes back to incentives. Just like bill collectors, debt management companies get paid when you pay up. This can mean upfront fees or paying premiums of up to 20 percent of your outstanding debt.

You need a debt relief plan that protects your interests, not the interests of an outside party. This is where Tennessee bankruptcy comes into play.

Continue reading "Tennessee Bankruptcy Helps Avoid Psychological Trauma Caused by Aggressive Bill Collections " »

Mortgage rates have hit historic lows. According to the Tennessean, the average rate for a 30-year fixed mortgage is now a shocking 3.91%.

It's a great way to ring in the New Year for folks who can afford to purchase a home or refinance their current property. Unfortunately, taking advantage of these rates just isn't an option for many consumers.

A large number of Tennessee homeowners have either already refinanced or are unable to get approval for a refinance or modification because of underemployment or a bad credit score. As for Uncle Sam's effort to help underwater homeowners, the Housing Affordable Refinancing Program (HARP) is still on hold while an expanded program is developed.

As Tennessee bankruptcy lawyers have discussed here before, one of the biggest problems with HARP is that it requires the participation of lenders. That means that if your lender isn't involved with the program, you can't qualify - whether or not you have appropriate income or credit.

Filing for Chapter 13 bankruptcy is a solution that works for almost everyone, regardless of your lender, your earnings, or the condition of your credit.

Thousands of Tennessee residents owe more on their mortgage than the current value of their home. Unemployment, medical bills, and credit card debt coupled with higher costs of living can eat into money needed for mortgage payments.

When you're on the verge of losing your house, you don't have time to wait for lenders to put you through a lengthy application process, only to tell you that a modification or refinance isn't possible - especially now that banks are getting more aggressive and taking swifter action to deal with homeowners who have fallen behind on payments.

A Tennessee bankruptcy filing has results immediately. From the day you file for Chapter 13, foreclosure is prevented or stopped - whether you missed your first house payment or were hours away from having your home sold on the auction block. Without having to worry about losing the roof over their head, many Tennessee bankruptcy lawyer clients find themselves better able to focus on regaining control of their finances.

For most of us, the mortgage isn't the problem - instead, it's other types of debt, such as credit card debt and hospital bills, that overwhelm our budget. A Chapter 13 bankruptcy filing allows debtors to work out an affordable payment plan so that much of the debt can be paid back over a manageable period of time. Whatever is left over when you've completed your plan is discharged free and clear.

If you're tired of being teased by low rates that are out of your reach, filing for bankruptcy in Tennessee can provide a tangible solution and much-needed legal protection - fast.

Continue reading "When Refinancing Isn't Realistic, Tennessee Bankruptcy Can Stop Foreclosure" »

To many people, bankruptcy appears to present a dilemma. Struggling families know that filing for bankruptcy has the potential to eliminate debt, but they believe it will be at the cost of giving up their most precious possessions.

What most folks don't realize is that there is a specific type of bankruptcy for those who'd like to keep their home, vehicles, and other essential assets. By filing for Chapter 13 bankruptcy in Tennessee, it is possible to ease the burden of debt while protecting possessions.

Chapter 13 bankruptcy doesn't magically erase debt. What it does do is to establish a unique payment plan, allowing consumers to pay back some debt in affordable portions over a period of 3-5 years. At that point, any remaining debt is forgiven and filers are given a fresh start.

Tennessee bankruptcy lawyers have watched Chapter 13 assist thousands of homeowners with their debt problems while helping them avoid foreclosure and hold on to their properties.

Not only can filing for Chapter 13 help you avoid foreclosure, but it has the power to actually stop the foreclosure process once it's started. This is an especially timely advantage in the Tennessee area, where falling real estate prices have left countless homeowners with unaffordable mortgage payments, in homes they cannot sell.

Whether you've missed one payment, ten payments, or are about to lose your house to the bank, bankruptcy can offer a second chance. The sooner you file for bankruptcy in
Tennessee, the sooner your home will be protected by law.

If you've made some mistakes with your mortgage, never assume it's too late. Chapter 13 can often help homeowners regain financial freedom. In the meantime, here's a sampling of advice from a U.S. News & World Report story that may help Tennessee homeowners avoid the most common mortgage mishaps.

Keep an eye on credit
Credit and mortgage terms go hand in hand. Don't wait until you apply for a mortgage to find out you have a credit score that will stick you with a sky-high rate or no shot at getting that loan. Checking your credit early on can give you a chance to make changes that may help you attain an affordable rate.

Consider total housing payment
Maybe you can afford your monthly mortgage, but many homeowners run into trouble when it comes to property taxes and insurance premiums. Make sure you can afford not just the principal and interest, but also taxes and insurance.

Strive for stability
If you've been jumping from job to job before applying for a mortgage, it can negatively impact your rate. Tennessee bankruptcy lawyers know job stability isn't always within your control, but you might want to consider waiting to buy a house until your work situation improves.

Shop around
The first rate isn't always the best. If you're pre-approved for a mortgage rate with one lender, great - but don't stop here. As with any type of purchase, comparison shopping ensures you end up with the best possible deal.

Read the fine print
All those loan papers may make your head spin, but make sure to read through them. If you end up agreeing to terms you aren't familiar with, you could become a victim of predatory lending - and you won't have a legal leg to stand on. It's important to know what you're signing. If you don't understand something in the documents, now is the time to ask questions.

Continue reading "Tennessee Bankruptcy Filing Can Stop Foreclosure, Even After Serious Mortgage Mishaps" »

2012 is officially here, and with it comes the chance for a fresh start. Probably not surprisingly, the top New Year's resolution for Tennessee families is to get in better shape - financially speaking, that is.

Tennessee bankruptcy lawyers know that 2011 was a tough year for consumers - and it isn't expected to improve to pre-recession levels until at least 2013 or 2014 thanks to sliding home values, lackluster business growth, and unemployment of around 9.4%, according to the Tennessee Business and Economic Outlook.

But while the state economy may be out of our control, we can still regain power over our own finances this year with a few smart money moves, including Tennessee bankruptcy.

Do something about your mortgage
It's estimated that more than 25% of U.S. homeowners are dealing with an underwater mortgage, in which more is owed on a home than the home is presently worth. This makes it all but impossible to sell a home if payments become unaffordable, particularly for homeowners who have experienced rising expenses, pay cuts, or job loss - often resulting in foreclosure.

With today's remarkably low rates, some banks are allowing homeowners to refinance in order to achieve better terms. Of course, banks are pretty stringent on their refinancing guidelines, and even those homeowners who are approved may only end up saving a few hundred bucks a month at most.

If you're unable to make your mortgage payment, you have nothing to lose by talking to lenders. But if you really want to make a mortgage affordable, there may be no better option than Chapter 13 bankruptcy. Filing for Chapter 13 in Tennessee has the power to stop the foreclosure process, eliminate unsecured debts like those burdensome credit card bills, and free up money to help you make payments that you're comfortable with.

Watch out for credit traps
Credit cards are a perpetual Catch-22. When times are too tough to pay the bills, they can help you squeak by. But before you know it, your growing credit card debt makes it impossible to pay the bills. So, if you're like most people, you open up another credit card account and ring up more debt and interest - and the problem just snowballs.

While credit cards are a temporary, and often problematic, solution, bankruptcy has the ability to offer a permanent and viable solution. A Tennessee bankruptcy filing attacks the root of the problem by getting debt under control so consumers can once again start putting money toward their bills rather than into the hands of credit card companies.

And as previously mentioned, Chapter 13 bankruptcy can also stop foreclosure - so you can keep your house while you work toward a more stable financial situation.

Find financial balance
It sounds overly simple, but the key to healthy finances is really just figuring out how to balance your spending with your earning. For the many folks without much freedom to increase income or reduce spending, a bankruptcy filing may be the best bet.

Today is a scary time for consumers. Economic growth and earnings growth are both sluggish. Banks are aggressively pursuing foreclosure after just a few missed payments. Credit card companies are playing up rewards programs and other perks while downplaying drawbacks like high interest and bank fees.

Bankruptcy offers a way to get a handle on debt once and for all, freeing up more money for house payments and other bills and protecting the finances and freedom of struggling debtors.

Continue reading "Tips for Refreshing Finances in 2012 with Tennessee Bankruptcy" »