Lefkovitz & Lefkovitz
Nashville Office 615-686-2279 Cookeville Office 931-400-2218
Serving all of Middle Tennessee's Bankruptcy Needs

Nashville Bankruptcy Law Blog

The link between medical coverage and bankruptcy

Losing medical care on even a temporary basis can double a person's risk of declaring bankruptcy. This is according to a study published by the American Bankruptcy Institute that looked at data available through the Bureau of Labor Statistics (BLS). The study found that interruptions in coverage were typically related to a divorce or losing a job. It also found that individuals could be at risk for losing their jobs because of a health condition.

Researchers said that the link between bankruptcy and a temporary loss of health insurance held even after accounting for income or personal debt levels. Even those who do have health insurance may have trouble getting care because it is too expensive. A poll by the Kaiser Family Foundation found that 34% of insured adults said that they struggled to pay insurance deductibles. Furthermore, half of Americans say that they put off going to the doctor or dentist because of cost concerns or know someone who has done so.

Why you shouldn't always fear bankruptcy

Most people are terrified of the prospect of bankruptcy. Between the possibility of reputation damage and long-term financial ruin, many people are extremely reluctant to even contact a lawyer, much less pursue the actual possibility of filing for bankruptcy.

However, you should not be afraid. Most fears regarding bankruptcy are based more on myth than on fact. If you are in serious financial trouble, do not be afraid. Learn the truths and the myths surrounding bankruptcy so you can make smart decisions for you, for your family and for your future.

Do not become a sub-prime auto loan statistic

You want a car. In fact, you probably need one. But, like most people in our country right now, you can’t afford one and you are having difficulty obtaining credit to get the car you need.

You are not alone. This is a common scenario for many would-be car owners. Then, you receive approval for credit to buy a car, probably from the dealership itself or another lending agency closely associated with the dealership. However, the interest rate on the loan is steep, and the interest compounds almost constantly.

Pick up the pieces after bankruptcy: It is possible

For many people facing serious financial challenges, the thought of bankruptcy is bleak: They think they will never again be able to obtain credit, they will never get into a decent home or have any kind of normal life.

It is true that you will have to liquidate some of your assets and it will be difficult to obtain credit for some time, but that is not the end of the story. Many people who have received bankruptcy relief have gone on to rebuild their credit scores and live relatively normal life without having to live in squalor or remain without credit.

Gaps in healthcare legislation

As Tennessee, and most states for that matter, seek to improve the health care and insurance costs for its citizens, there are considerable dangers involved.

One of the most common dangers can be seen in Texas – an effort to improve the healthcare costs that left many still vulnerable. Unexpected medical expenses are among the most common causes of serious financial trouble.

Survey finds fewer Americans paying credit cards in full

The Credit Card Confidence Index from CompareCards.com has provided some new insight into how Tennessee residents and others are managing their credit card balances. According to the survey, only 30% of respondents said that they were able to pay their credit card balances in full. Furthermore, 21% said that they were unable to pay their credit bills in full during the previous six months. This is the fourth straight month in which that percentage has increased.

Generally speaking, men have had an easier time paying down their credit card balances compared to women. The survey found that 10% of men said that they hadn't paid a credit card bill in full over the past six months compared to 31% of women who said the same thing. Of those who had paid their bills in full each month over the past six months, 32% were men and 28% were women. The August survey also found that fewer people were confident in their ability to pay a monthly statement fully.

Seniors and debt: bankruptcy during retirement

In Tennessee and across the United States, many senior citizens do not retire in style. Instead, retired seniors often live on low Social Security incomes or Social Security disability payments. Some seniors cannot afford to buy groceries unless they have food stamps. Additionally, many of these seniors experience overwhelming debt. Struggling with debt is challenging, especially if the person is near retirement age. Numerous seniors who are 65 and older face severe financial challenges.

Bankruptcy may present the only viable option to a senior who requires a fresh financial start. According to a lengthy study conducted by the Consumer Bankruptcy Project, 65-year-old seniors account for one out of every seven Americans filing for bankruptcy. Additionally, statistics show that 75-year-old seniors also experience heavy personal debt. According to Kevin Leicht, a University of Illinois sociology professor, many baby boomers worked for decades without having the necessary skills that would have qualified them to receive retirement pensions.

How to incur new debt during a Chapter 13 case

Tennessee residents and others who have filed for Chapter 13 bankruptcy may be allowed to incur new debt while their cases are ongoing. However, debtors must get a court's permission to do so. Failure to do so could result in a case being thrown out and the vehicle being repossessed. There is also a possibility that a debtor could be sued by his or her creditors.

Individuals who are looking to get car loans while their Chapter 13 cases are still open will first find a dealer that is willing to work with them. The finance manager or another dealer representative will create an order sheet that lists information such as the loan's term, interest rate and monthly payment. The order sheet should list the vehicle that the debtor wants to purchase as well as the words "or similar."

How leases are treated in Chapter 11 cases

If a person leases land in Tennessee or anywhere else, it may be possible to retain an unexpired lease after filing for Chapter 11 bankruptcy. However, there must be an explicit acceptance of that lease, and the bankruptcy court must then approve of the decision to accept it. This is according to a ruling made by the United States Bankruptcy Court for the Eastern District of North Carolina.

The case involved a man who had filed bankruptcy in April 2018 and had a lease to use farmland that expired in November 2018. Under bankruptcy law, the lessee could have up to 210 days to decide whether to accept or reject the lease. In this case, the lessee did not explicitly accept the lease. Instead, he gave the lessor $21,000, which was what the lessee owed to use the land in 2018. The lessee than argued that the payment represented an acceptance of the lease because the lessor never took steps to reject it.

Young people have high credit card debt

Student loan debt among the Millenial generation gets a lot of attention for a good reason, but what gets less attention is the high amount of credit card debt accumulated by this same group. According to a survey conducted by CompareCards, only 13 percent of younger credit cardholders in Tennessee and other states say they are completely debt-free. They also say that this credit card debt is more of a financial burden than their student loans.

While about 36% of Millenials reported having student loan debt, more than two of three said that they had credit card debt. Among this group, the average person expects to be debt-free by the age of 49. Gen Xers with outstanding debt expect to be out of debt by age 67 on average. With younger generations juggling so many different types of debt, it's no mystery why nearly one in four say they will die with debts.

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Nashville Office
618 Church Street, Suite 410
Nashville, TN 37219

Phone: 615-686-2279
Fax: 615-255-4516
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Cookeville, TN 38501

Phone: 931-400-2218
Fax: 931-526-6244
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