Nashville Bankruptcy Law Blog

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.

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.

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.

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."