An option available to Nashville debtors unable to get their bills under control is often overlooked due to persistent myths. These myths can be detrimental by delaying debt relief for consumers and denying them the consumer protections available under bankruptcy law. Tennessee residents suffering from persistent debt, creditor harassment and the threat of losing personal property to repossession will want to consider all the options without prejudice.
One reason people shy away from filing for Chapter 13 or Chapter 7 bankruptcy is their concern over their future financial well-being. In cases where debt relief is a real necessity, however, credit scores are often low to begin with. Property may also already be at risk of repossession. The Federal Reserve Bank of Philadelphia actually found that bankruptcy proceedings resulted in a better credit score on average with a total increase of nearly 80 points. There are also financial products designed to help consumers get better scores, such as secured credit cards.
Another common concern is the loss of assets, such as the home and personal vehicle. The reality is that state laws exempt many types of possessions, which is seen in the fact that most Chapter 7 cases are no-asset cases. Luxury items and excess real estate property may be liquidated to pay the overwhelming debt.
Individuals and sole proprietors who are struggling with debt have options besides continuing to face insurmountable financial challenges. An experienced attorney can help guide those seeking debt relief through the alternatives from efforts to negotiate with creditors or seek a mortgage modification to filing for Chapter 7 bankruptcy.